Managing Water Risk in the Oilfield

Unconven'onal Produc'on & Well Site: Facili'es Design Onshore 2015

Managing Water Risk in the Oilfield

Needs

Risks

Supply

Logis'cs

Reuse

Disposal

Ques'on & answer session

Agenda

2

Managing Water Risk in the Oilfield

Misc Rig Water/Potable Needs

Drilling & Comple'on Fluids

Cemen'ng

Fracing/Acidizing

Enhanced Recovery

Needs

3

Managing Water Risk in the Oilfield

Stage of field development

Supply Considera'ons

Logis'cs/Transporta'on

Regulatory

Environmental

Facility Development

Disposal

Risks

4

Whisky is for drinking; water is for figh'ng over. - Anonymous

Managing Water Risk in the Oilfield

Access-who owns the water?

Regulatory system

Diversity of supply

Community issues

Supply

5

Managing Water Risk in the Oilfield

Water hauling opera'ons can account for 10-50% of oilfield traffic Dependent upon strategy and individual water aZributes of each specific play

Water hauling is usually second or third in ranking for highest field level costs

Strategy is highly dependent on stage of field development

Transport Mechanism

Storage - Weather condi'ons? Mul'-well pads?

Safety issues with high levels of truck traffic, dust control, and road damage

Pricing structure can imbed vola'lity into costs

Logistics

6

Managing Water Risk in the Oilfield

Determine appropriate technology to meet technical requirements while remaining commercially viable

Logis'cs of reuse

Requires sampling of both make-up and reuse water and close coordina'on with s'mula'on company to insure a good frac job

Environmental challenges with handling treated water

Balancing technical constraints and economics with external pressures

Veang new technologies for technical and commercial viability

Reuse

7

Managing Water Risk in the Oilfield

Availability and loca'on of disposal sites

Audi'ng and approval of available sites

Regulatory Changes

Disposal Strategy

Contrac'ng Strategy

Transport

Risks/liabili'es associated with lifecycle waste ownership

Disposal

8

Managing Water Risk in the Oilfield

Can you balance everything we just discussed?

What is most important to your enterprise?

Where is your current focus?

What strategic partnerships can you make?

There will always be problems to overcome

What Does Success Look Like?

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Managing Water Risk in the Oilfield Question & Answer Session

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