WATER REUSE FOR UNCONVENTIONAL OIL AND GAS OPERATIONS

Water is critical to developing unconventional oil and gas such as fracking of shales for tight oil and gas. It requires approximately 5 million gallons of water to frack a well in Colorado. There is concern within some segments of the public that hydraulic fracturing could stress limited water resources or present risks to water quality. The importance of water management and regulatory pressures will increase as new regulations are passed and public pressure increases.

The view of water in the oil and gas project lifecycle has changed over the last several years. Historically, water was viewed as a by-product and was handled through disposal or reinjection. Today, water is part of the economic value chain and is an operational requirement for well development. This use of water needs to be done wisely to maintain regulatory compliance and public trust. In addition, the cost associated with water handling is significant (approximately 2/3 of water cost is driven by logistics such as trucking). Truck traffic is also one of the major social issues associated unconventional oil and gas development.

Integrated water management systems (i.e. pipelines for conveyance and fixed/mobile water treatment facilities) provide significant opportunities to re-use water and address public concerns about water use and truck traffic. Water recycling is becoming an industry standard and requires a minimal level of treatment using known technologies. The development of infrastructure for recycling of produced water is largely a logistics issue and can be accomplished using a combination of mobile units, pipelines and fixed water treatment infrastructure. The importance of water re-use may also be heightened as we learn more about possible connections with seismic activity and deep well disposal.

Water plays a critical role in developing unconventional oil and gas resources and managing water for re-use is best accomplished on a wellfield or regional basis. This requires planning and investment, but can be competitive financially when viewed over the long term. Technological solutions for re-use exist today, but it will be the non-technological factors that play the most important role in driving these opportunities in the future. These include regulatory pressure, water scarcity, Social License to Operate and financial considerations.