Water Reuse in the Oil & Gas IndustryJuly 16, 2014

WateReuse Association Webcast Series© 2014 by the WateReuse Association

Helping industry, utility, and water reuse professionals create sustainable industrial water supply solutions

• Cooling

• Manufacturing

• Internal Reuse

• Food Processing

• High Purity Applications

Industrial Reuse Committee

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Eric Rosenblum, Co-ChairEnivrospectives

Jon Freedman, Co-ChairGE Water & Process Technologies

Abigail AntolovichUOP – A Honeywell CompanyModerator

February 2-3, 2015 | Austin, Texas

Call for AbstractsAbstracts are due Friday, July 18www.watereuse.org/industrial-commercial-2015

The 2015 Industrial and Commercial Water Reuse Conference will focus on sustainable water policies, accounting and conservation of water and energy, and the development and application of appropriate water treatment and reuse technology.

2015 Industrial and Commercial Water Reuse Conference

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Don’t Miss the Annual WateReuse Symposium!

www.watereuse.org/symposium29

• Two full days of presentations on industrial reuse

• Panel discussions on reuse in the Food & Beverage, Oil & Gas, and Chemicals industries

• Early-bird registration deadline is Friday, July 25

Today’s webcast will be 75 minutes.

There are1.25 Professional Development Hours available.

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A Few Notes Before We Start…

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Today’s Agenda

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Oilfield Water Recycling: Challenges, Research, and CollaborationsDr. Tzahi Cath, Colorado School of Mines

Practical Examples of Oilfield Water RecyclingBrent Halldorson, P.Eng., Fountain Quail Water Management

Demonstrating Social Responsibility in Water ManagementTekla Taylor, Golder Associates

Oilfield Water Recycling: Challenges, Research, and CollaborationsTzahi Cath, Colorado School of Mines

Challenges of water treatment and reuse in the upstream O&G sector

Collaborative research between academia and industry

Examples from past and ongoing research

Research needs

• The industry is divided into three major sectors:• Upstream, midstream, and downstream

• Upstream Sector• Searching for crude oil and natural gas fields

• Drilling wells

• Operation of O&G producing wells

O&G Exploration & Production Operations

http://www.bearcreekservices.net/ http://www.nytimes.com/2014/07/08/us/http://earthsky.org/

• Conventional vs. unconventional O&G resources• The key difference is the manner, ease, and cost associated with extracting the resource• Unconventional resources include:

• Coalbed methane• Tight oil• Tight gas• Shale gas

• Common theme: • Large volume of water is used or produced• High potential for water reuse

O&G Exploration & Production Operations

Source: U.S. Energy Information Association, Annual Energy Outlook 2013.

• Water plays a significant role throughout the life cycle of O&G wells• Drilling

• Circulating mud that cools the drill bit and carries rock cutting out of the borehole• 100,000 to 1 million gallons per well, depending on well type

• Hydraulic fracturing• 2 – 5 million gallons per well, depending on number of stages and length of horizontal lateral

• Secondary and enhanced oil recovery• Water flooding• Steam-assisted gravity drainage (SAGD)

• Two primary challenges:• Sourcing a sufficient quantity and quality of water• Efficiently managing the wastewater generated

Water Use in Exploration & Production Operations

• Drilling Fluid• Contains chemical additives designed for site-specific applications

• Corrosion inhibitors, biocides, lubricants

• Ultimately returns to the surface as a waste stream commonly referred to as “drilling mud”

• Fracturing Fluid Flowback• ~10-40% returns to the surface as a waste stream commonly referred to as “frac flowback”

• Composition changes with time the water was in contact with the formation

• Produced Water• As the well transitions from the completion stage to the production stage, the flowback

transitions to a distinct waste stream referred to as “produced water”

• Produced water generally consists of formation water that has been trapped in the rock

Wastewater Generation in Exploration & Production Operations

Wastewater Composition

Photo courtesy of shalegaswiki.com. Data obtained from Environmental Considerations of Modern Shale Gas Development, SPE 122391

Volumetric Composition of Shale Gas Fracturing Fluid

• Flowback and produced water are characterized by• High dissolved organic matter, including volatile compounds and hydrocarbons

• High salt content (often >35 g/L)

• Metals (e.g., iron, manganese, calcium, magnesium, barium, etc.)

• Dissolved gases (e.g., H2S)

• Naturally occurring radioactive material (NORM)

• High concentrations of suspended solids, oil, and grease

• Major Challenges:• Highly variable water quality (spatial and temporal)

• High salinity

Wastewater Composition

• Flowback• High flowrates in the first days/weeks after fracturing

• produced water• High flowrates at early life of well, decreasing with time (e.g., coalbed methane)

• Very low flowrates throughout the life of the well (e.g., shale gas and others)

• Current Challenges:• Transportation and treatment capacity for frac flowback

Wastewater Quantity

• Evaporation pits

• Deep well injection disposal (UIC Program - Class II)

• Treatment and surface water discharge

• On-site recycling/reuse• Relatively uncommon with no national estimates

Water Management Options

• Main Challenges:• Cost of treatment• Location of potential

users• Water quality needed

for potential use at location

Oil & Gas Exploration and Production:Potential Beneficial Reuses

Drilling Muds

Frac Flowback

Produced Water

Internal Reuse

• Market economy…• Is buying water less expensive than treating? (assuming water is locally available…)

• Is treating water less expensive than disposing (deep well)? (assuming disposal wells are in close proximity…)

• Transportation cost

• Minimizing water quality for reuse

• Fracturing with saline water

• Requires different chemistry of additives (e.g., gel system)

• Potential solutions• Mobile on-site treatment…

Limitations: Cost of Treatment

• DOE, Research Partnership to Secure Energy for America (RPSEA)• 7 years program (2007-2014), ~$50M per year

• Small Producer Program

• Ultra-Deepwater Program

• Unconventional Resources Program

• Close collaboration required between academia/businesses and O&G industry

Collaborative Programs to Advance Reuse

http://www.rpsea.org/

• NSF, Sustainability Research Networks (SRN): AirWaterGas

• Routes to Sustainability for Natural Gas Development and Water and Air Resources in the Rocky Mountain Region

• 5 years program (2007-2014), ~$12M

• California State Polytechnic University Pomona• Colorado School of Mines• Colorado School of Public Health (University of Colorado Denver)• Colorado State University• National Oceanic and Atmospheric Administration• National Renewable Energy Laboratory• University Center for Atmospheric Research• University of Colorado Boulder• University of Michigan

• Close collaboration with the O&G industry

Collaborative Programs to Advance Reuse

http://airwatergas.org/

• $3M ConocoPhillips center at the Colorado School of Mines• “Joint sustainability of water resources & unconventional energy

production in the west”• Partnership with industry to address critical issue in Colorado and

across Western U.S.• Annual support of 6-8 faculty, 6-8 graduate fellows, 8-10 undergraduate

scholars

Industry-Academia Partnership

• Challenges

• Trust… we publish…

• Intellectual property

• Liability (field work, exposure to chemicals, etc.)

• Share knowledge, challenges, needs

• Needs

• Feedback on technology development and testing

• Representative water samples (develop technologies and analytical methods)

• Testing of new technologies at relevant scale in the field

Academia – Industry Collaborative Research

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• Objectives• Development of database and a decision support

tool (DST) selecting and optimizing water reuse options for unconventional O&G development with a focus on Flowback and Produced Water Management, Treatment and Beneficial Use for Major Shale Gas Development Basins

• Major outcomes and outputs• Work on progress on development of a database for water

quality and a decision support tool for management of flow back and produced water management in major basins

• Treatment and Beneficial Use of Produced Water from Unconventional Gas Production: Development of Decision Support Tool (DST). 2013 AEESP 50th Anniversary Conference. Environmental Engineers and Scientists of 2050: Education, Research, and Practice. July 14 - 16, 2013, Golden, CO, USA.

Example of Ongoing Research:Advancing a Web Based Decision Support Tools (DST) for Water Reuse in Unconventional O&G Development

• Funding agency: US DOE-RPSEA• Start date: 1/2012• End date: 1/2016• Funding: $286,984

Pei Xu, PhDMengistu Geza, PhD Tzahi Cath, PhD

http://aqwatec.mines.edu/produced_water/tools/

Example of Ongoing Research:Advancing a Web Based Decision Support Tools (DST) for Water Reuse in Unconventional O&G Development

Water Quality and Quantity

Treatment Selection

Beneficial Use Options

Beneficial Use Economics

http://aqwatec.mines.edu/produced_water/tools/

• Objectives• Further develop and optimize engineered osmosis

membranes and systems for treatment of unconventional O&G wastewater

• Field test the engineered osmosis process on drilling and produced waters in the DJ Basin

• Develop process design tools and life cycle assessment

Example of Ongoing Research:Engineered Osmosis for Advanced Pretreatment of O&G Wastewater

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• Funding agency: US DOE-RPSEA• Collaboration w/ Hydration

Technology Innovations• Start date: 9/2011• End date: 6/2015• Funding: $1,323,805

Bryan CodayPhD Candidate

Example of Ongoing Research:Engineered Osmosis for Advanced Pretreatment of O&G Wastewater

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• Effects of Operating Conditions on FO

http://www.emeraldsurf.net/forward-osmosis-the-green-machine/

• Next-generation Membrane Performance

Example of Ongoing Research:Forward Osmosis – Reverse Osmosis System Analyzer

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• Objectives• Development and evaluation of cost-

effective pretreatment technologies for O&G wastewater with emphasis on biological filtration

• Major outcomes and outputs• Substantial removal of dissolved

organic carbon (96%) and chemical oxygen demand (89%) in produced water from the Piceance and Denver-Julesburg basins

Example of Ongoing Research:Advanced Biological Pretreatment

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Daniel FreedmanMS Student

Stephanie RileyMS Student

• Funding agency: NSF/SRN• Start date: 10/2012• End date: 9/2017• Funding: $1,400,390 to CSM

Example of Ongoing Research:Advanced Biological Pretreatment

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• Initial (3/26/14)• ~ 42% DOC adsorption• DOC removal

• Both: 58% at 24 hr• BAF 1: 92% at 48 hr• BAF 2: 90% at 48 hr

• Conditioned (5/15/14)• ~ 27% DOC adsorption• DOC removal at 24 hr

• BAF 1: 78%• BAF 2: 93%

0

50

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0 24 48 72

DOC (m

g/L)

Time (hours)

BAF 1

BAF 2

88.7% 88.8%

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200

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BAF 1 BAF 2

COD (m

g/L)

InitialFinal

91.8% 88.9%

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BAF 1 BAF 2

COD (m

g/L)

InitialFinal

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DOC (m

g/L)

Time (hours)

BAF 1

BAF 2

• Objectives• Understand how different standard

methods and preparation techniques affect analytical results

• Understand if the methods are effective in characterizing complex matrixes

• Standardized EPA Methods demonstrated a significant increase in variation when applied to the analysis of raw and treated fracturing flowback and produced water

Analytical Methods Applied to Oil and Gas Waste Streams

• Funding agency: NSF/SRN• Start date: 10/2012• End date: 9/2017

Bethany Yaffe,MS Student

Bryan CodayPhD Candidate

Analytical Methods Applied to Oil and Gas Waste Streams

7 8 6 6 5 8 5 6 3 3 4 2 6 8 7 7 5 5 4 3 9 9 9 9 7 8 6 7 5 7 5 5 7 5 5 5

0 .0

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Ca tion

R a w Fra ctu rin g Flo wb a ck Tr ea ted Fra ctur in g Flow b ac k R a w P rod u ce d Wa ter Tr ea ted Pro d uc ed Wa te r

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R a w F ra ctu ri ng F lo wb a ck T r ea ted F ra ctu rin g F l ow b ac k R a w P rod u ce d W a ter T r ea ted Pro d uc ed W a te r

6 9 9 9 7 9 8 9 6 8 8 60

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1 001 201 401 604 00

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C a tionFeC aBa

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6 5 4 5

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Raw Fracturing Flowback Treated Fracturing Flowback Raw Produced Water Treated Produced Water

• More research funds that enforce/required collaboration, both at the state and federal levels

• More share of information between academia and industry (both O&G and water/wastewater industries) to help understand treatment objectives

• Development of advanced pre-treatment processes to enable desalination and beneficial water reuse or discharge back to the environment

• Develop alternatives to deep-well injection to enable more beneficial reuse

Research Needs

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Practical Examples of Oilfield Water RecyclingBrent Halldorson, Fountain Quail Water Management

Water Management – the Past…

• Water was viewed as an afterthought.• Volumes increased over time – were simply a cost of production.

UNCONVENTIONALS ARE DIFFERENT

• Water is needed BEFORE the resource can be developed.

• Water treatment was viewed as a science project –interesting but not integral.

Water Management – the Present…

• America is waking up to the fact that it is becoming energy independent.• Water is vital to the development.• Experience is becoming more important. Black Boxes are going away.

© 2012 Select Energy Services. All materials contained in this document are confidential and proprietary to Select Energy Services, LLC and intended recipients.

RECYCLING IS BECOMING NORMAL

• Water is being recognized as essential.• Supplies & disposal can be limited.• The Texas drought has raised the profile of water

availability in areas like West Texas.

Water Management – the Future…• Water must be used more effectively to ensure

continued development.• Industry wide codes and best practices will emerge

for water recycling.• PW is becoming viewed as an asset.

RECYCLING WILL BE A NORMAL PART OF SHALE PRODUCTION

• Recognized leaders in this space will emerge.• Water-related businesses will be bundled (supply,

transport, recycling, disposal).

Water is a precious resource.

The TWRA is committed to developing positive, sustainable solutions to Texas’ water challenges.

The TWRA seeks to:

① Encourage water reuse and recycling.

② Protect water without adversely impacting industry.

③ Maintain and advance Texas as a global economic leader.

The TWRA supports all viable water recycling technologies and their vendors. www.txwra.org

Recent TX Rule Changes

New RRC Recycling Rules:

Permit-by-rule. Applies to most recycling operations.

Multi-Lease, Multi-Operator.

Special distinction for distilled water.

HB 2767:

Transfers liability away from producers.

Liability transfers to recycler and onto purchaser/user of water.

The state has removed many of the roadblocks to water recycling. According to the RRC “the Commission sets up a regulatory framework in which recycling is a viable alternative to disposal, but allows the operators to make their own water and waste management decisions.”

Freshwater

• Higher cost (thermal distillation).

• Lower risk – store and transport freshwater.

Saltwater

• Lower cost (minimal treatment).

• Difficult logistics (storage + transport)

Saltwater or Freshwater?

The Big Question

Charting a Logical Path

SALTWATER

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RE-USE ZLD

(BASIC) TSS/POLYMER REMOVAL ONLY

(CUSTOM) REDUCE HARDNESS, SCALING INDEX, ETC.

IS THE COST WARRANTED?LOGISTICS.

FRESHWATER

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Freshwater

• Higher cost (thermal distillation).

• Lower risk – store and transport freshwater.

Saltwater

• Lower cost (minimal treatment).

• Difficult logistics (storage + transport)

Rugged, on-site brine re-use. High capacity (10,000bbl/d), proven.

1Saltwater Recycling Example

• Customer using PW as source water.• High H2S (~200ppm)• FQWM and Select put together a

package deal for customer (containment, transfer and recycling).

Before / After Treatment

Saltwater Recycling Example

Remove solids prior to containment.

Direct re-use or “floc-n-drop” into containment.

Solids build up & reduce effective volume of containment.

Bacteria blooms. Lower cost initially. Expensive clean-up.

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Keep solids out of recycled water containment. 100% volume available for HF supply.

Clean brine can be stored longer. No nutrient for bacteria growth.

Saltwater Recycling Example – Solids Control Essential

Keep solids out of recycled water containment

Prevents bacteria blooms & messy cleanup

PW is now a resource

Saltwater Recycling Example

View Into 40,000bbl Clean Containment

Coin at bottom of clean brine storage tank.

Saltwater Recycling ExamplePlug in at SWD

Move water recycling equipment near drilling activity to reduce transport costs.

2Freshwater Recycling Example

Freshwater Recycling Example – Texas Installations

Most E+P producers prefer freshwater if the economics work.Consistent composition.Easy to store & transport.Low liability (drain fastlines onto ground).

Economics helped if concentrated brine (~9.8#) can be used for drilling.Allows existing freshwater pit/piping infrastructure to be utilized.

Recycling to Freshwater

Recycling Center – Hub for Water

Flowback

Produced Water

Other Treatable Water Streams

Segregate, skim oil, remove solids, treat

water.

Distilled Water (re-use for fracs)

Clean Heavy Brine (re-use for drilling)

Solids + any un-treatable water for disposal.

Maximize Recovery of Value-Add Products

Oil ($$$)

Recycling

Facility

Optimize & Protect SWD Capacity

PAST: Disposal OR RecyclingFUTURE: Disposal AND Recycling

New Trends

① Pit covers (prevent evaporation).② Combine Recycling & Disposal (not Recycling OR Disposal).③ More use of brackish water and saltwater – be careful about hydrogeology.④ Incentivize, not mandate recycling (i.e.: TWRA). www.txwra.org

Concluding Remarks

① Recycling is mainstream.② Look for experience. Technology must be based on real science.③ Expect results – set performance criteria.④ Be prepared to work through issues with treatment provider.

Lets make this work. The success of widespread unconventional development hinges on how we

manage the water.

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Demonstrating Social Responsibility in Water ManagementTekla Taylor, Golder Associates Inc.

Water Management in the Social Context – the (not so) technical issues

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What are the issues?

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We use 3.2B bbls/year(134B gallons)

Source ≈ 400- 1,000 truck trips per well

We produce 21B bbls/year(882B gallons)

Disposal ≈ 2,000 truck trips overthe life of the well

How is water use communicated?

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Agriculture, 56.1%

Municipal, 3.8%

Industrial, 0.8%

Power, 29.4%

Other, 9.9%

Colorado: Water Use

Sources: Golder AssociatesColorado Division of Water Resources

How is water use communicated?

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How is water protection communicated?

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Source: Energy from Shale

How is water protection communicated?

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Source: 8020 Vision

How effective is public opinion in shaping policies?

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The future of produced water reuse

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• Beneficial Uses – Long Term Potential• Risk Management – Driving Decisions• Stakeholder Interests/Truck and Disposal Concerns• Regulations and Water Rights - Limitations• Cost – Specific to Location• Infrastructure – Collaboration & Mutual Benefits

Challenges and Opportunities for Reuse

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Ask the Experts

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Dr. Tzahi CathColorado School of Minestcath@mines.edu

Brent Halldorson, P.Eng.Fountain Quail Water Management brent.halldorson@fountainquail.com

Tekla TaylorGolder AssociatesTekla_Taylor@golder.com

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