CLIMATE CHANGE ADAPTATION IN TODAY S OIL AND GAS INDUSTRY A Case Study in Water Resource Management EnviroTech Calgary April 2018 1
CLIMATE CHANGE GLOBAL WARMING WEATHER PATTERNS Photo Source: NASA 2
What Will Continue To Happen? According to the NASA Global Climate Change, Vital Signs of the Planet: Temperatures will continue to rise Frost-free season (and growing season) will lengthen Changes in precipitation patterns More droughts and heat waves Hurricanes will become stronger and more intense Sea levels will rise The arctic will likely become ice-free 3
2018 Global Risks Economic Risks Environmental Risks Technological Risks Geopolitical Risks Societal Risks Source: World Economic Forum, Global Risks 2018 4
5 2018 World Economic Forum Risk Evolution
World Headlines Jordan One of the driest places on Earth struggles to safeguard its most precious resource: water Leaky pipes, theft and dwindling rainfall threaten Jordan s water supply. By Derek Stoffel, CBC News Posted Mar.18, 2018 04:00AM ET Last Updated: Mar.18, 2018 10:31PM ET 6
World Headlines South Africa Cape Town water crisis prompts rationing to prevent Day Zero tap shut off Average reservoir level in Cape Town, population 4 million, is at 27%, but not all of that is usable The Associated Press Posted Jan.26, 2018 10:32 AM ET Last Updated: Jan.26, 2018 14:43 PM ET 7
Headlines at Home Canada It s not impossible : Western Canada s risk of water shortages rising Communities where water has been plentiful are not immune to water crises as climate changes By Erin Collins, CBC Posted Mar.14, 2018 02:00AM MT Last Updated: Mar.18, 2018 20:14PM MT 8
Headlines at Home Canada Shrinking mountain snowpack, drier summers spell trouble for Vancouver water supply How Vancouver s water system is preparing for changing climate, population growth By Emily Chung, CBC News Posted Mar. 16, 2018 04:00AM ET Last Updated: Mar. 18, 2018 22:14PM ET 9
Canada Drought Monitor Drought conditions as of February 28, 2018 Source: Agriculture and Agri-Food Canada, Canada Drought Monitor 10
People Are Concerned About Their Water Fracking Can Contaminate Drinking Water Sustainable oil and gas companies are being proactive in using technological advances in the management of water resources. Tourmaline Oil is one of those companies. 11
12 Source: Tourmaline 2017 Sustainability Report
TOURMALINE s APPROACH to ENVIRONMENTAL Sustainability AIR LAND WATER Inline well testing to eliminate flaring Vapour recovery units to capture up to 95% of fugitive emissions Fuel gas lines to deliver compressed natural gas to facilities and reduce the use of diesel Participation in the carbon disclosure project (CDP) Creating compact and expandable facilities Utilizing multi-well pads Optimizing pipeline right-of-ways to minimize surface impact State of the art facilities to reduce risk of releases Comprehensive pipeline integrity program 24/7 state of the art seismic monitoring technologies and ongoing community engagement Utilizing recycled water in operations Sourcing non-potable water to minimize freshwater usage Owning and operating water pipeline infrastructure to facilitate extensive water recycling program First operator in Alberta to receive regulatory approval of containment ponds
Fracking Uses Large Quantities of Water One well completion uses about 7,000 m 3 Current completions can use up to 42,000 m 3 (6 wells on one pad) 2.8 Olympic sized swimming pools 16.8 Olympic sized swimming pools Tourmaline drills 250-300 wells per year = to 700-840 Olympic sized pools of water 14
Fracking Water Cycle For a 6 well pad, recycling water can : Save $ on trucking, storage and disposal costs Removes ~1400 trucks from the road This reduces emissions, dust, noise, traffic, and wear and tear on infrastructure. Source: EPA 15
Tourmaline Operations Regulatory Drivers - British Columbia - Alberta NEBC MONTNEY COMPLEX British Columbia PEACE RIVER HIGH CHARLIE LAKE COMPLEX Alberta Calgary ALBERTA DEEP BASIN Alberta 16
BC Water Management 95% In 2017, flowback was recycled 75% In 2017, of water used in operations was from recycled sources 187,000 m 3 of produced water storage capacity 3 produced water ponds South Montney and 1 North Montney 46 km of permanent pipeline infrastructure to transfer water to and from pads to produced water pits Source: Tourmaline 2017 Sustainability Report 17
Alberta Water Management One permanent storage pond (21,000 m 3 ). Second pond (30,000 m 3 ) just approved. Use of temporary C-Rings at well pads for storage and reuse. (Approx. 25,000 m 3 ). No permanent pipelines due to geographic spread of wells. In 2017, - 95% of flowback was recycled - 50% of water used in operations is from recycled sources 18
First approved water storage pond in Alberta 19
Cost Savings Regulatory Compliance Increased safety and GHG emissions with reduced trucks on the road Social benefitsprotection of fresh water sources 20
CONTACT INFORMATION Sandy Thompson Managing Principal, Advisory Canada +416 899-4742 (c) sthompson@slrconsulting.com www.slrconsulting.com 21