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Water Management in Shale Developments John Walsh, PhD Gary Crisp GHD Consulting Services

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Page 1: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Water Management in Shale

Developments

John Walsh, PhD

Gary Crisp

GHD Consulting Services

Page 2: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Outline of Presentation

Some background

Definition of problem – water management

The five key drivers for water management in HF operations

High level assessment of options for water management

The cost model for refining the options

Page 3: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Background – Hydraulic Fracturing in Horizontal Wells

Horizontal section at

bottom of well running

through the shale

seam.

Well is cased.

Each "stage" (section)

is isolated by plugs.

Perf and HF is carried

out from the toe to the

heel one stage at a

time.

When all stages are HF, the plugs are drilled out.

Fractures are vertical. Well-to-well communication is minimized by vertical rather

than horizontal fractures.

Page 4: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Background – What does “Unconventional” mean?

Hydraulic fracturing has been practiced for decades.

Roughly 1 million wells have been hydraulically fractured in the US.

Roughly 1.5 million wells have been hydraulically fractured outside the US.

“Unconventional” refers to the reservoir type (extremely low permeability) and to the method of proppant placement (long horizontal wells with mechanical packers that allow fracturing of several zones that are isolated from each other).

(mD)

ref: G. King SPE 152596(2012)

Page 5: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Background – Water Volumes

Water Management for unconventional hydraulic fracturing is challenging because:

large volumes of water:

• Unconventional HF: 120,000 bbl (20 ML)/job

• Conventional HF: 2,000 bbl (320 kL)/job

the produced water is often “stranded,” but networks and distribution systems always develop where there is an economic incentive

from an industrial water treatment perspective, the segment has grown rapidly: 8 MBWPD (0.15 GL/day) in N Am in just a few years

local environmental and social issues.

Page 6: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Definition of Problem

Definition of problem:

The large volumes of water involved in hydraulic fracturing (HF) in shale development potentially adds significant cost if not properly managed

Proven technologies exist – this is not the problem

Making decisions early, and planning for water is critical

This is not a traditional area of oilfield strength, therefore many operators do not know how to do this

Page 7: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Water Issues and Challenges

Water treating challenges fall into four categories:

Source: Cost to obtain fresh water for hydraulic fracturing job

Re-Use: Cost and challenges to re-use the flow back water as hydraulic fracture make up water.

Recycle: Cost and challenges to upgrade the flow back water to required specifications for hydraulic fracture make up water. Cost of transportation.

Disposal: Cost and challenges to dispose of flow back and produced water. Includes transportation.

Page 8: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Developing a Water Management Strategy – Step One

There are five key drivers for water management. Step one in developing a water management strategy is to answer the questions associated with each key driver.

Key Drivers Simple Question Options

Hydrology Is fresh water available? Yes or No

Regulatory & Community Is injection disposal an

option?

Yes or No

Fracture Fluid Quality

Required

Can saline water be used for

HF fluid make-up

Yes or No

Flow back fluid

characteristics

In the flow back fluid saline? Yes or No

Stage of Field

Development

What kind of equipment

packaging is required or

appropriate?

Mobile, Modular, or

Centralized

Page 9: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

First – Pass:

Hydrogeology: Is fresh water available, in the volumes needed, at reasonable cost, over the life of the project?

Regulations & Community: Can a permit be obtained to use injection wells, that are within 20 or so miles, for the volumes needed, over the life of the project?

If the answer to both of these questions is yes, then the water management strategy is straightforward and well-defined.

If the answer is no, then some form of re-use / recycle will be economically justified and the water management strategy needs some work.

Page 10: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

1) is fresh water available?

2) is injection disposal an option?

3) is fresh water required?

4) is flow back saline?

1

2

3

Y

Y

N

N 4

R / R

No Water

Treatment

Required

Treat TSS,

No Desal

Desal Y

Y

N

N

Page 11: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Technology Selection:

If some form of water treatment is required (for re-use and recycling) then several other factors must be considered.

Selection of water technology starts with an understanding of:

the fluids injected

the fluids that are produced (flowed-back)

the quality of the fluids required if recycling is to be practiced

The technology options must also consider the stage of field development.

Page 12: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Types of fluids in the flow-back:

Dispersed light oil

Dissolved polymer

Dispersed / suspended polymer

Surfactant

Solids – organic, inorganic

Dissolved salt

Page 13: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

1

3

Three Stages of Field Development:

(defined in terms of type of water treating equipment)

1) Remote and isolated well development –

mobile water treating systems

2) Well clusters with some in-field drilling and completions –

modular water treating systems

3) Extensive in-field development with infrastructure –

networked conveyance systems

centralized water treating plants

Stage of Field Development:

Page 14: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Mobile Technology

Fountain Quail / Aqua-Pure ROVER Mobile Clarifier –

TSS (solids and organics) are chemically

precipitated. Solids settle for later collection. Capacity

is 10 kBWPD.

GE Mobile Evaporation – Truck-mounted MVR with

horizontal shell in tube Hex. Capacity 1 BWPM.

WaterTectonics & Halliburton – electrocoagulation in

mobile units.

Page 15: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Semi – Centralized / Modular Treatment Facilities

Barnett Shale: Semi – Permanent

evaporation facilities using Fountain Quail

NOMAD MVR evaporation technology.

Capacity ~ 20 kBWPD.

Marcellus Eureka Resources Facility:

Semi – Permanent facilities NOMAD.

Page 16: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Networked Water

a few large scale treatment sites

Centralized

Processing

CWT / POTW

Full Treating is an

Option

Lower treatment cost

Higher gathering cost

Requires a network

Facilitates fill re-cycle

Centralized

Distance to treatment facility

> 20 miles

Page 17: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Field development timeline

Networked Water Stranded Water Clustered Water

Wa

ter

Tre

atm

en

t C

ost

Co

nn

ecte

dn

ess o

f W

ate

r S

yste

m

Nu

mb

er

of T

rea

tme

nt O

ptio

ns

Cost

Water Network Connectedness

Number of Treatment Options

Cost versus Stage of Field Development:

Page 18: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Flow Back Water Disposition

The Options:

Reuse as frac water – reuse implies minimal treatment such as filtration and

chemical injection.

Recycle – recycle implies some form of water treatment in order to reduce

suspended solids or, in the most advanced case, to reduce both suspended

solids, salinity and specific ions. Recycle treatment local or centralized.

Discharge to Surface – typically requires extensive treatment, possibly

desalination. See Marcellus case.

Discharge to POTW – limitations in some states. Typically requires some

treatment, may require extensive treatment in some states.

Discharge to Commercial WTP – commercial industrial water treatment plant.

Inject into Disposal Well – usually primary (TSS/polymer/Oil) treatment is

required. Plugging and scaling of the deep well formation dictates the treatment

requirement.

Aquifer Recharge – not practiced in the US. But is practiced overseas.

Page 19: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Salt content of produced water from various plays

In addition to salinity, specific ions may need to be removed.

Page 20: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

The Transition from Flow Back to Produced Water

ref: EP Mag (Dec 2011)

Page 21: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Removal of suspended and dissolved components:

Removal to ppm levels or less. Heavy metal and NORM component

removal. Any physical separation technology can only be carried out if the

polymer is removed.

Technologies that are typically used here include:

o Chemical precipitation processes

o Fine, Micro- and Ultrafiltration

o Ceramic membranes

o Specific ion exchange

o Osmotic membranes

o Distillation

Treatment applied to Hydraulic Fracture Flowback & Produced Water:

Ref.: after Metcalf & Eddy

Page 22: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

The starting point for developing a Water Management Strategy involves answering five questions defined by the Key Drivers.

The first two questions define whether or not reuse or recycle of flow back fluids is needed at all.

If the flow back fluids are to be recycled, the stage of the development will define whether mobile, modular, or centralized facilities are to be used.

Mobile technologies are necessarily simple and compact.

Modular technologies offer greater flexibility in treatment options.

Centralized facilities offer the greatest number of treatment options and the lowest per barrel costs.

Conclusions:

Page 23: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

May 12-14, 2013

Produced Water Treatment in the Alberta Oil Sands

David Pernitsky, Ph.D., P.Eng Suncor Energy

Page 24: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Outline

• Overview of oil sands water use – mining and SAGD

• Water quality and treatment challenges

• Highlights of current membrane / desalination initiatives

– Tailings pond water treatment

– SAGD de-oiling

– SAGD softening / desalination

– Waste brine concentration

• Opportunities for membrane and desalination technology development for oil sands applications

Page 25: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Athabasca Oil Sands

• Athabasca oil sands are a shallow deposit of bitumen, sand, clay, and water

• 3rd largest oil deposit in the world at 170 billion bbls

• 1926 hot water extraction process patented by Karl Clark

• 1967 first commercial operation at Great Canadian Oil Sands (now Suncor)

Page 26: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

The Athabasca Oil Sands

Page 27: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Oil Sands Mining

• Truck and Shovel

• Each trucks carries almost 400 tons of oil sand

• Each shovel load is enough oil sand to fill your garage

Page 28: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Bitumen Extraction (Mining)

• Trucks deliver oil sand to the extraction process

• Hot water froth flotation is used to separate oil & sand

• Bitumen floats to the top and sand falls to the bottom

• Sand, fines and water are stored in tailings ponds

Page 29: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Extraction (Mining) Process Diagram HT SLURRY

Sep Cell

FROTH

DE- AERATED

FROTH To Froth

Storage

(IST)

Vent

FINAL TAILS To Ponds

De-aerator

Secondary

Flotation

Tertiary

Flotation

Hydro-cyclones

60% bitumen

30% water

10% mineral

0.2 – 0.5% bitumen

50 – 55% water

45 – 50% mineral

FLOTATION

FROTH

FLOTATION

FROTH 90 – 97% bitumen recovery

TERTIARY

TAILS To Ponds

Page 30: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Tailings Ponds (Mining)

• Water from extraction process stored in tailings ponds

• Fines settle out and water reused in extraction

• Suncor planning to reduce the number of tailings ponds at existing mine from 8 to 1

• In 2010, Suncor completed surface reclamation of a decommissioned tailings pond

• This 220-hectare site was Suncor’s first settling pond for oil sands tailings in 1967

• Re-use of tailings pond water for process water is part of this overall water-use reduction strategy

Page 31: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

9 9

Cap Rock (shale & glacial t ill) 250m thickSteamChambers

UnrecoveredHeavy Oil

6mo6mo

2yr2yr5yr5yr

8yr8yr

10yr10yr

~ 1 kilometer~ 200m

40m

In Situ Recovery Steam Assisted Gravity Drainage (SAGD)

Benefits of in situ: • Resource access • Staged growth • Reduced water use

Page 32: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

10

SAGD – Typical Process Schematic

DILUENT FROM OS SALES

INDUCED STATIC FLOTATION UNIT

OIL REMOVAL FILTERS

PRODUCED WATER TANK

Water Treatment: Oil Removal & Softening

Ca (OH)2 MgO

MAKEUP WATER FROM

OS

LIME TO SLUDGE

CENTRIFUGES

WLS FILTER FEED TANK

LIME SOFTENER

FILTER (Removes

Solids Carry-over from WLS)

WEAK ACID CATION

PACKAGE (Removes Hardness)

WARM LIME SOFTENER (Precipitates

Hardness and Removes

Silica)

Steam Generation

INJECTION WELL

PRODUCTION WELL

PAD SEPARATOR

Field Facilities

Oil/Water Separation

STEAM

GENERATORS

RECOV / DISPOSAL

WATER

STEAM SEPARATOR

BOILER FEEDWATER

TANK

INLET SURGE VESSEL

TREATER

SALES TANK

PRODUCED GAS TO OTSG PROD. GAS SEP.

SKIM TANK

FWKO

DISPOSAL WATER

90% of the incoming

produced water is

recycled at Suncor’s

SAGD plants

Page 33: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

11 11

FIREBAG PROJECT (SAGD)

Inlet

Separation &

De-oiling

Water Treatment

Steam Generation

Cogeneration

Page 34: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Typical Produced Water Quality

UT

SAGD PW = SAGD produced water

OSPW = Oilsands mining process affected water

Water Analysis SAGD PW OSPW

Parameter Units

pH mg/L 7-8 8.5-9.2

Alkalinity (as CaCO3) mg/L 75-200 400-700

TDS mg/L 1000-4000 1000-2500

TSS mg/L <30 60-100

Silica (as SiO2) mg/L 100-400 <10

Sulfate mg/L 10-60 10-150

Calcium mg/L 5-25 5-50

Magnesium mg/L 1-5 4-25

Chloride mg/L 500-1700 15-400

Sodium mg/L 200-450 10-600

Free and Emulsified Oil and

Grease

mg/L 500-2000 (skim tank inlet)

50-200 (skim tank outlet)

40-90

TOC mg/L 200-500 (after de-oiling) 100-150

Page 35: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Oil Sands Desalination Applications • Existing Applications

– RO desalination for utility steam boilers

– MVR Evaporators for SAGD boiler feed water

– Evaporators/crystallizers for brine concentration

• Applications in Development

– Evaporators/RO for tailings water re-use

– SAGD high-temperature membrane de-oiling

– RO desalination for SAGD boiler feed water

– Waste brine concentration

– Desalination of saline mine basal water

Page 36: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Tailings Water Treatment

• Investigated treatment of tailings pond water for re-use as onsite process water and/or SAGD make up water

• Treatment objectives:

– Suspended solids removal

– Free and emulsified oil and grease removal

– Various process configurations

• Coagulation and Coagulation/DAF, plus

• Media filtration or MF or UF, plus

• Evaporation or RO

Page 37: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Tailings Water Treatment Plant

Page 38: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

0

200

400

600

800

1000

18-Nov-10 8-Dec-10 28-Dec-10 17-Jan-11 6-Feb-11 26-Feb-11 18-Mar-11 7-Apr-11 27-Apr-11 17-May-11

Un

tre

ate

d T

ail

ing

s W

ate

r T

urb

idit

y (

NT

U)

Turbidity spikes associated with:

• Wind

• Seasonal pond turnover

• Rapid withdraw

• Return of fresh tailings

Small, stable clays:

• D10-D90: 0.1-30 μm

Tailings Pond Turbidity

Page 39: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

DAF Pilot • Pilot run between Dec. 2010 and Jun 2011

– Cold water (< 5oC)

• Ultrafiltration:

– Immersed PVDF membranes

– 10-15 gfd

– 80-90% recovery

• Reverse Osmosis:

– Low pressure brackish water membrane

– 10-15 gfd

– 80% recovery

Tailings Water Treatment Pilot

Page 40: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

DAF Pilot • SAGD de-oiling typically consists of:

– Gravity skim tank / gas flotation

– Walnut shell oil removal filters

• Boiler Feed Water Treatment (Ca/Mg/Si):

– Hot or warm lime softening

– Desalination (thermal evaporation)

SAGD Treatment Applications

Page 41: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

19

Once Through Steam Generator (OTSG)

Convective Section

Radiant Section

• Robust

• Tolerates higher TDS

• Suitable for lime-softened water

• Limited to 80% (wt) steam quality

Page 42: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

20

Parameter Unit Limits

Sulphite (O2 scavenger) ppm >10

Dissolved Oxygen ppb <7

pH 8.0-10.5

Iron – Total ppb <250

Dissolved Hardness ppm as

CaCO3

<0.50

TDS ppm 8,000-12,000

Silica ppm as

SiO2

<75

Turbidity NTU <7.5

Bitumen in Water ppm <0.5

(hexane)

SAGD Boiler Feed Water Quality

Page 43: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

DAF Pilot • Opportunities:

– Smaller footprint, modular construction

– Can maintain higher temperature and pressure

– Improved reliability

• Risks: – High levels of fouling in existing SAGD process train

– Frequent variations in oil content due to upstream process upsets

SAGD Membrane De-oiling

• Work completed: – 2011 ceramic membrane de-oiling pilot

– Q3 2013 polymeric and ceramic membrane de-oiling pilot

Page 44: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

SAGD Desalination Applications

• Lifecycle costs of WLS/OTSG and Evap/drum boiler treatment similar – choice is site specific

• Opportunities: – Need for lower-energy desalination technologies

– Alternative evaporator designs? RO?

• Risks: – High levels of fouling in existing SAGD process train

– Si fouling

– Dissolved Organic Matter (DOM) fouling

– Need for high-temp membrane materials

Page 45: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

Brine Management • Waste brines generated from:

– Utility boiler RO

– Tailings and/or basal water desalination

– SAGD boiler blowdown

– PW evaporator blowdown

• Current brine management techniques:

– Third-party truck-out

– Deep well / salt cavern disposal

– ZLD: evaporation / crystallization / drying

• Opportunities: low energy brine concentration/solidification

SAGD Crystallizer Brine: TOC = 25,000mg/L

Page 46: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

MacKay River SAGD ZLD System • OTSG blowdown concentrated with evaporators/crystallizer

• Crystallizer brine thermally dried • Allows high levels of

water recycle, but

• High energy usage and GHG generation

• Mechanically complex

Page 47: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

25 DRAFT

Decision Roadmap for Next Generation SAGD

“The need for

higher-efficiency

steam generation

drives advanced

water treatment”

Drivers: • Fuel gas OpEx • GHG emissions • Make-up water volumes • Disposal volumes • Reliability

Need: High Efficiency Steam Generation • Hybrid boiler, drum boiler

Need: Advanced Water Treatment • Dissolved Salt Reduction • Dissolved Organics Reduction • Evaporators, RO, oxidation, etc.

Need: Advanced De-oiling Pretreatment • Membranes, advanced adsorbants, separators, etc.

Alternatives: • Subsurface SOR reductions • Break-through ‘direct contact’ steam generation

Drivers for Future SAGD Process

Page 48: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

SAGD Desalination Biggest OPEX and GHG reduction opportunities exist in steam generation area

Boiler Feed Water Quality

Life

Cycle

Cost

Threshold water quality

allowing step-change in

steam generation

technology?

Water Treatment

Steam Generation

Can we desalinate and use more efficient utility boilers?

– Additional water treatment allows more efficient steam generation – what is the optimum combination for lowest overall life-cycle cost?

“94% fuel to steam

Super Boiler

developed”

“Desalination Costs Dropping”

Page 49: Water Management in Shale Developments - IDAidadesal.org/wp-content/uploads/2013/05/BANFF2013_SESSION1.pdf · mobile water treating systems 2) ... Produced Water Treatment in the

• Maintain a high-temperature, high-pressure system

• Improve heat integration, reduce footprint

Possible Next-Generation SAGD

FWKO Diluted

Bitumen Treater

High-

Temperature

RO

Pressurized

Deoiling

High

Efficiency

Steam

Generation

Membrane

Brine

Concentrator

From Pads To Upgrader

Steam To Pads

To Disposal

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Technology Needs De-oiling Membranes

• Temperature tolerance (85 to 160oC)

• Resistance to fouling by upsets of viscous oil

Desalination Membranes

• Temperature tolerance (85 to 160oC)

• Organic-fouling resistance

Brine Concentration Membranes

• Temperature tolerance (60 to 105oC)

• Organic-fouling resistance

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Technology Development Challenges

• High costs of pilot construction and operation at remote sites

• Strict safety environment

• Mandate of site is bitumen production, not technology testing

• Chemical changes in water samples affect off-site testing*

• Gated industry approach:

– Rigorous desk-top analysis

– Extensive bench-scale testing

– Proof-of-concept off-site piloting

– Lastly, onsite piloting

* Ku et al,. Aging of Water From Steam-Assisted Gravity Drainage (SAGD) Operations… Industrial and Engineering Chemical Research, 2012, 51 (21), pp 7170-7176.

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• Producers recognized need for dedicated technology testing facility that would provide safe access to hot-coupled process fluids and allow technology testing in a safe, cost-effective environment

• Stimulate and accelerate development, qualification & introduction of better fluid management technologies.

• Water Technology Development Centre (WTDC) proposed to be built at Suncor’s Firebag site

– Multiple producers partnering through a COSIA joint industry partnership

– Project sanctioning 2013

– Operation in 2015

Water Technology Development Centre

30

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The Concept

31

• Provide space, infrastructure and resources to: – conduct pilot testing on live process fluids from host site

– import fluids from other sites for batch or semi-batch testing

– concurrently test multiple technologies in parallel or series, but not replicate a full SAGD plant

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32

Project Scope

Flexible test set up: • 1 test of

500m3/d • Or up to 5 tests

of 50 m3/d

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Questions

David Pernitsky

[email protected]

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May 12-14, 2013

Oil Sands Mining & Water Quality Basics

Darrell Martindale P.Eng., M.Sc. Manager Environmental Performance Improvement

Shell Canada

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May 12-14, 2013

Oil Sands Mining Overview

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Truck and Shovel Mining

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Oil Sand Mining

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Mining and Water

Warm

Water Surge

Bin

Double

Roll

Crusher Rotary

Breaker

Rejects

Raw Oil

Sand Feed

Conditioning Pipeline

Slurry Feed to

Extraction

Warm Water Air

Extract and Process Bitumen!!

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Oil Sands Processing

Bitumen

Sand

Water

Clay

If the process is this simple, what’s the problem?

River water

Oil Sands

85% Recycled Water

Water

Water

Clay

Sand

Clay

Water

Water (Reuse)

+

+

+ Bitumen (Product)

+

Water

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Tailings Challenges

8

• Surface area impact

• Reclamation confidence and pace

• Water quality

• Groundwater protection

Over $400M spent across industry on tailings research and improvement Challenge: Finding solutions that effectively optimize both environmental and cost performance

Aerial view of tailings facilities - 170 km

2

Shell: MRM Shell: JPM

Syncrude Aurora North

CNRL: Horizon

Syncrude: Mildred Lake

Suncor

2

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Mature Fines Treatment & Drying

9

~35 wt.%

~65 wt.%

Shell: Atmospheric Fines Drying Suncor: TRO process

February 23, 2010

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Mine Depressurization

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Pit Wall Failure

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Athabasca River

Raw Water Pond (135,000 m3 volume)

RCW Pond (330,000 m3 volume)

Salinity: 270 ppm Na+ 150 ppm Cl-

JPM ETF Salinity:

260 ppm Na+ 140 ppm Cl-

JPM Plant

Utilities

Froth (HTFT & LTFT)

MRM Plant

MRM ETF Salinity:

280 ppm Na+ 130 ppm Cl-

Gland Water & FAS 400 m3/hr

HTFT TSRU & Froth 200 m3/hr

Gland Supply 700 m3/hr

Net Recycle 9,000 m3/hr

MRM Reclaim 4,500m3/hr

JPM Reclaim Barge 5,000 m3/hr

Recycle to Plant 4,500 m3/hr

River Water >100 m3/hr

Total River Water

1,800 m3/hr

Water in CST 4,000 m3/hr

Cooling Tower 150 m3/hr

Cogen 500 m3/hr

Gland Supply* 400 m3/hr

Other Uses

Net Reclaim 3,500 m3/hr

Plant Supply 1,500 m3/hr

Waste Streams

Recycle to HTFT 300 m3/hr

l

Represents average week of mine operations

IPC Transfer 4,500 m3/hr

Salinity: 25 ppm Na+

20 ppm Cl-

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Water Quality

pH Dis-Ca Dis-Mg Dis-Na Cloride Conductivity TDS Sulfate

Muskeg River 6.5 40 11 10 3 300 20-45 20-46

Reclaim water 8 20-40 10-18 290-310 230 1400-1800 1000 150-200

Groundwater #1 7.3 60 35 800 800 2000-4000 2500 10-20

Groundwater #2 7 50 5 350 3.0 1000-1500 1000-2000 <0.5

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May 12-14, 2013

Regulatory Overview of Water Disposal and Reuse in Unconventional Oil and

Gas Development

Melinda Truskowski, Tekla Taylor, Hugh Abercrombie

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May 12-14, 2013

What Was Unconventional Has Become Conventional… Practically, “unconventional oil and gas” can be thought of as a of a water management program with an oil and gas byproduct.

• Water Source • Use • Treatment • Recycle • Dispose

Golder Associates Inc., ICBTM

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May 12-14, 2013

LIFECYCLE APPROACH TO SHALE GAS WATER MANAGEMENT

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May 12-14, 2013

WATER USE FOR SHALE DEVELOPMENT

Availability

Shale Gas Represents

~1% of Total Water Use

Timing and Location

Competition

Current and future industrial,

domestic, recreational, and

habitat uses

Drought conditions limit the

supply available for all

Ownership

Water is a right

Water is a commodity

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May 12-14, 2013

RESPONSIBLE WATER MANAGEMENT

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May 12-14, 2013

MANAGING REUSE AND DISPOSAL

• Water Quality • Identified End Use and Treatment Costs • Location and Transportation Costs • Environmental Concerns (Drought, Induced

Seismicity, Surface Water or Groundwater Impacts) • Public Concerns (Truck Traffic, Source Water

Protection) • Regulations

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May 12-14, 2013

US REGULATORY PROGRAM

• Clean Water Act is promulgated federally but administered by each State • Regulates discharges to surface waters • The states must develop regulations that are equal to or more

stringent than the federal regulation • The Safe Drinking Water Act is a federal law administered by the EPA or

by States with Primacy • Regulates underground injection wells • The States’ regulations must be equally or more stringent than the

federal regulation

Spills are regulated under various federal programs under the jurisdiction of various state agencies

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May 12-14, 2013

US SHALE GAS BASINS

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May 12-14, 2013

REUSE IN PENNSYLVANIA

• Approximately 2/3 of the wastewater generated in the Marcellus is reused • In April 2011, PA DEP Secretary Michael Krancer

requested that by May 19, 2011, Marcellus Shale natural gas operators stop sending wastewater from shale gas extraction to wastewater treatment facilities.

• In 2012, the SRBC suspended 64 surface water withdrawal permits.

• The PADEP allows, under a general permit, the processing, transfer and beneficial use of produced water for hydraulic fracturing

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May 12-14, 2013

DISPOSAL IN PENNSYLVANIA

• Pennsylvania has 5 operating injection wells

• April 2012: EPA issues a draft permit for a Class II Injection Well in northern Pennsylvania

• March 28, 2013. In Re: Stonehaven Energy Management. EPA Environmental Appeals Board finds EPA failed to demonstrate Class II UIC permit for injection well in Venango County, PA adequately considered possible seismic impacts.

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May 12-14, 2013

REUSE IN COLORADO

COGCC Rule 907.a.3 Reuse and recycling. To encourage and promote waste minimization, operators may propose plans for managing E&P waste through beneficial use, reuse, and recycling by submitting a written management plan to the Director for approval on a Sundry Notice, Form 4, if applicable. Such plans shall describe, at a minimum, the type(s) of waste, the proposed use of the waste, method of waste treatment, product quality assurance, and shall include a copy of any certification or authorization that may be required by other laws and regulations. The Director may require additional information.

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May 12-14, 2013

REUSE IN COLORADO

COGCC Rule 907.c.3 Produced water reuse and recycling. Produced water may be reused for enhanced recovery, drilling, and other approved uses in a manner consistent with existing water rights and in consideration of water quality standards and classifications established by the WQCC for waters of the state, or any point of compliance established by the Director pursuant to Rule 324D.

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May 12-14, 2013 COGCC Rule 907.C.2.A Produced water disposal. Produced water may be disposed as follows: A. Injection into a Class II well, permitted in accordance with Rule 325

Class II UIC wells (for injection of fluids from oil and gas production, 40 CFR § 144.6(b)) are permitted by COGCC Rules 325 and 326 establish requirements for Class II well permit application, well integrity testing, public notice, and record keeping (Form 26)

Other disposal options: 907.c.2.B: Evaporation/percolation in a properly permitted pit 907c.2.C: Disposal at a commercial facility 907c.2.D: Road spreading 907.c.2.F: Evaporation in a properly lined pit at a centralized E&P waste management facility permitted in accordance with Rule 908

DISPOSAL IN COLORADO

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May 12-14, 2013

DISPOSAL IN TEXAS

• > 8,000 active disposal wells • > 25,000 wells that accept waste fluids

and enhance recovery • In 2012, the Railroad Commission

approved 72% of the applications for disposal well permits

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May 12-14, 2013

REUSE IN TEXAS

March 26, 2013. New Texas Railroad Commission Rules make non-commercial recycling of produced water and flowback fluids (16 TAC § 3.8) easier – no permit for treated fluids reused in the well bore.

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May 12-14, 2013

CANADIAN REGULATORY PROGRAM

• Federal and provincial/territorial governments share responsibility for environmental regulation: • Federal environmental laws are based on jurisdiction in matters of

interprovincial, national and international scope • Canadian Environmental Protection Act (CEPA) • Canadian Environmental Assessment Act (CEAA) • National Energy Board Act (NEBA)

• Provincial and territorial environmental laws are based on areas of provincial jurisdiction including municipalities, natural resources and public lands

• Water use, from sourcing to disposal, is subject to provincial regulation

administered through: • Provincial departments of energy, environment • Oil and gas regulatory boards and commissions

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May 12-14, 2013

CANADIAN SHALE GAS BASINS

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May 12-14, 2013

WINTER DRILLING, HORN RIVER BASIN, B.C.

CSUG

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May 12-14, 2013

BRITISH COLUMBIA

Disposal • The BC MOE and Oil and Gas Commission (OGC) are involved in oilfield

waste discharge under the Oil and Gas Waste Regulation (OGWR) of the Environmental Management Act (EMA)

• Under Section 7(1) of the OGWR, produced water from oil & gas wells must be disposed by deep well injection, subject to OGC approval and EMA permit

Reuse • Dual water source and water disposal wells must obtain disposal well

approval orders (e.g., Debolt Formation, Horn River Basin) • “The Commission encourages the use of practices and technology that

minimize surface impacts and minimize withdrawals from potable water sources. “

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Disposal • Non-saline groundwater protected in Alberta • Under OGCA, Energy Resources Conservation Board (ERCB) approval

required for disposal of oilfield produced waters • ERCB Directive 58 sets out oilfield waste disposal practices, including

deep well injection; no surface release

Reuse • ERCB discussion paper December 2012 Regulating Unconventional Oil

& Gas in Alberta; new play-focused, risk-based regulation • Operators to address, “opportunities to recycle and reuse flow-back or

other produced water, including economic and/ or technology constraints if present”

• May require EPEA approval

May 12-14, 2013

ALBERTA

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OTHER JURISDICTIONS

Saskatchewan • Oil & gas industry regulated under Oil and Gas Conservation Act

(OGCA) and regulations; • Under s. 76 of the OGCR, without approval otherwise, all wastes

to be disposed into a subsurface formation

Quebec (under moratorium) • Deep well injection not practiced; possible use of industrial waste

water treatment facilities

New Brunswick • One operator (2012); produced water trucked to other

jurisdictions for disposal

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May 12-14, 2013

WATER MANAGEMENT IN CANADA

“Safeguard the quality and quantity of regional surface and groundwater resources, through sounds wellbore construction practices, sourcing freshwater alternatives where appropriate and recycling water for reuse as much as practical”

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May 12-14, 2013

Hugh Abercrombie Ph.D. P.Geol. – Associate, Senior Geochemist, Calgary

[email protected]

+1 (403) 216 8991

Melinda Truskowski – Associate, Global Unconventional Gas Leader, Denver

[email protected]

+1 (720) 962-3431

Tekla Taylor, R.G. – US Energy Services Leader, Denver

[email protected]

+1 (303) 980-0540

[email protected]

THANK YOU!

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May 12-14, 2013

Where is the market now?

Christopher Gasson Global Water Intelligence

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May 12-14, 2013

A tale of three charts: Gas prices

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May 12-14, 2013

What does this mean? • The expansion of shale gas development in the US slowed

during 2012 • There has been considerable pressure to cut costs: flow

back water storage and reuse of high TDS water has become the norm

• Massive investment in LNG plants is underway: these have some complex water treatment demands

• The Australian CSG market has been strong

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Unconventional gas resources

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May 12-14, 2013

A tale of three charts: US oil production

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May 12-14, 2013

What does this mean? • US Oil/Water separation market remains buoyant • The focus of US frac water services has largely switched

from gas to liquids • Shale oil production costs have been falling • The shale boom has created an interesting clash of business

models: light capex vs heavy capex • US light crude production is replacing light crude imports

and starting to be limited by light crude refining capacity • Demand for heavy crude is falling

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May 12-14, 2013

A tale of three charts: tar sands discount P

rice

per

bar

rel

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May 12-14, 2013

Alberta oil sands quarterly outlook

0

100,000

200,000

300,000

400,000

500,000

600,000 1

99

7

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

Other / unknown

Lime softening/ion exchange

Evaporator

New

Sag

d p

rod

uct

ion

mill

ion

bar

rels

pe

r d

ay

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May 12-14, 2013

How has the outlook changed?

0

100000

200000

300000

400000

500000

600000

1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029

April 2012 April 2013

New

Sag

d p

rod

uct

ion

mill

ion

bar

rels

pe

r d

ay

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GWI’s market forecast

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May 12-14, 2013

Oil and gas ($ million) 2011 2012 2013 2014 2015 2016 2017 Shale gas: conventional treatment 30.7 57.1 68.3 80.4 87.1 100.9 139.4 Shale gas high recovery desal 0.0 0.0 8.0 0.0 10.0 20.0 35.0 CBM high recovery desal 112.7 165.0 126.0 132.0 160.0 170.0 164.4 SRP/low salinity systems 105.0 147.5 253.8 230.6 337.5 487.5 783.5 High recovery desal for steam EOR 291.2 385.3 502.1 602.5 556.8 454.2 519.6

Updated 291.2 185.3 140.0 229.6 452.3 502.1 602.5 Produced water polishing 504.7 562.7 609.7 649.1 683.0 741.1 799.0 Produced water RO/evaporation 105.0 119.4 135.8 154.5 175.7 199.8 227.3

What is the forecast now?

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May 12-14, 2013

Where is the money for water?

Source: IEA 2008

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May 12-14, 2013

Thank you and buy the report!

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May 12-14, 2013

Advanced Treatment Technologies in the

Upstream Oil & Gas Industry

Tom Pankratz, Water Desalination Report

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Advanced Technologies

Technologies that historically have not been used, or seen widespread use, in the oilfield, and which provide a higher level of treatment and/or volume reduction.

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Advanced Technologies

Technologies that historically have not been used, or seen widespread use, in the oilfield, and which provide a higher level of treatment and/or volume reduction. Advanced technologies usually employ membranes or evaporative treatment techniques…

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Advanced Technologies

Technologies that historically have not been used, or seen widespread use, in the oilfield, and which provide a higher level of treatment and/or volume reduction. Advanced technologies usually employ membranes or evaporative treatment techniques…and in most cases, must be preceded by some conventional produced water treatment technologies.

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Gas Outlet

Recovered Oil

Water

Well

Fluids

Bulk Oil Gas Outlet

to Oil

Processing

Recovered Oil

Clean

Water

Gas Outlet

Bulk Oil

Separator

Free-water Knockout

Degasser

Hydrocyclone

source: NOV

Conventional Technologies

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Induced Gas Flotation (IGF)

Rotor

Shaft

Seals

Bearing

Housing

Roller

Bearings

source: Cameron/Wemco

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Corrugated Plate Interceptor

source: Natco

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Walnut Shell Filtration

source: Veolia

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Coalescer

Outlet

Heavy Oil Sump

Light

Hydrocarbon Sump

Pre-conditioning

Filters

Coalescer

Inlet

source: Pall

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Separator Type Removal Mechanism Oil Droplet

Size Removal

API Separator Gravity >150 m

CPI / TP Separator Gravity w/Coalescer >50 m

DGF / IGF Gas Flotation Gas Flotation >20 m

De-oiling Hydrocyclone Centrifugal Force >10 m

Coalescing Media Filtration Adsorption >2 m

Absorption Media Filtration Absorption 2 m

Membrane Filtration Barrier 1 m

Produced Water Technologies

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Produced Water Dynamics

• New production techniques

• Higher volumes of PW generated

• Higher quality water often required

• Increasing energy costs

• Stricter environmental regulations

• Conventional disposal often not viable

• Water treatment companies don’t know oilfield

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Advanced Technologies

• Electrocoagulation

• Thermo-ionic separation

• Membrane filtration (MF/UF)

• Reverse osmosis (RO)

• Forward Osmosis (FO)

• Electrodialysis (EDR)

• Evaporation/crystallization

• Humid-dehumidification (HDH)

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Summary

• > Opportunities for Conventional Technologies

• > Opportunities for Advanced Technologies

• Key is figuring out how to make oil & water mix