water management lessons learned

Water Management Lessons Learned

From The Oil & Gas Shale Drilling Boom

Ronald L. Coufal, Halliburton Energy

Daniel T. Eyde, St. Cloud Mining

Water Management in

Mining Conference, September 12, 2012

http://www.halliburton.com/


2© 2012 HALLIBURTON. ALL RIGHTS RESERVED.

NUMBER 1 LESSON LEARNED

PUBLIC PERCEPTION

IS COSTLY


The advancements in Shale and Tight development is a

great thing for our industry, but…..


Headlines

circa April 2011


Liquid

Waste

Solidification

Applying The Lessons Learned

Water Management

Technology Drilling

Fluids

Technology

Water

Containment

Technology

Ion

Exchange

Technology


The oldest problem in the oilfield

Produced water

111 billion bbl produced annually worldwide

3 - 5 bbl of water produced per bbl of

hydrocarbon

$51 billion annually in water management costs




The newest problem in the oilfield

3-5 MM gallons to complete a well

which create further problems

Flow back volumes up to 2MM gallons

Water supply and disposal

Trucking Concerns

Regulations


HALLIBURTON WATER MANAGEMENT PHILOSOPHY

Maximize Reuse

•Increase % of produced water reused in frac fluids

•Reduce volume of water sent for disposal

•Lower fresh water demand by 25% by 2014

Minimize Waste Stream and costs for Producers

•Use less treatment

•Reduce Trucking

•Change frac fluid formulation to adjust to salinity




Biggest myths about water use in completions

That drinking water quality is needed to make a frac fluid

and complete a well

That it is all about water treatment

That the industry can continue to use fresh water as a

once through commodity

That recycle and using new technologies is too

expensive




Current Options for Produced/ Flow back

Haul and Dispose $ 1.50- $7.00/bbl

Clean to Discharge Quality $ 5.0- $15.00/bbl

Recycle $ Net Savings-15.00/bbl




80,000 BBL Well Completion Once Through Flow Sheet

Supply Transport Cost

Water Cost

Flowback Disposal

Flowback Transport

Total Cost of Water: $281,600 + Storage

$3.52/bbl + Storage

Supply H2O

Transport Cost

$/bbl

Water Cost

$/bbl

Flowback

Factor

Flowback Disposal

Cost, $/bblFlowback Transport

Cost, $/bbl

$1.10 $0.45 30.00% $0.75 $1.22




Supply H2O

Transport Cost

$/bbl

Water Cost

$/bbl

Flowback

Factor

Flowback Disposal

Cost, $/bblFlowback Transport

Cost, $/bbl

$1.10 $0.45 30.00% $0.75 $1.22

For every BBL you Recycle

You eliminate these costs and reduce fresh

water usage, trucking and disposal impact

If you are over $3.00 per bbls in these costs,

you can likely recycle and save money.




ISSUES IN WATER REUSE

Fluid Formulation problems•High salinity can cause problems in polymer

hydration.

•Cross-linking of polymers is a bigger problem.

Formation Damage: •Suspended materials plug pore throats in shales leading

to production loss.

•Simple filtration cannot remove suspended colloids.

Scaling•Higher hardness can lead to more scaling – but not

always.

•Theoretical calculations and experimental verifications

needed


Keys to taking cost out while you recycle….an

integrated approach

1. Effective Water

Treatment

2. Fluid Formulation

study

3. Efficient Logistical

Engineering for Well

Construction




EQUIPMENT: CleanWave™

• Electro coagulation Process

• Over 600MM gallons of treated

produced water

• 95-99% removal of TSS, Total

Hydrocarbon, Iron, and Heavy

Metals


0

Treatment Cost, $/bbl

Clean-

Wave™

Distillation

Evaporation

Ultrafiltration

RO

Chemical

Precipitation

Small percentage removal of

TSS/Hydrocarbon passing

residuals to the well

Treatment Cost $/ BBL

Water Treatment Technologies – Cost vs. Value Add

CleanWave™ Adds High Value at an Attractive Cost

High

Med

LowFiltration

Hydroclone

Wate

r V

alu

e A

dd

ed

TDS removal Not

Necessary for most water

re-use for frac fluids

0 2 4 6 8




Halliburton Water Management System:

Water Transfer Data & Impact

Operational Example:

24 Horizontal Wells proximal to transfer infrastructure

100,000 BBL of Water per Well

• 2.4 MM BBL Total

Each Water Tanker can haul approximately 130 BBL

Assuming 22 mile round trip

• 18,462 Round Trips

• Assuming $1.05 /bbl truck transport =$2.52MM for

truck transport

These trucks will be removed from the roadways using a Water

Transfer Solution




CleanWave™ for the Mining Industry

Bariod Industrial Drilling Products introduces a new compact

CleanWave™ Water Treatment System for use in non-oil and gas

drilling applications to reduce water consumption and hauling costs.


Baroid IDP CleanWave™ Water Treatment SystemInnovative Water Processing Solutions by Water Quality Management Professionals

Scalable from 1 gpm to 1000’s gpm covering full range

of mining industry needs

Typical footprint ranges from 600 ft2 to 1600ft2

Purchase or lease programs available

Treatability and solution design

Installed in <3 days once on site

Typical mobilization time in North America < 2 weeks

Baroid IDP turnkey service or on-site customer training




Provide

Economical

Disposal of

Used Fluids

Applying Shale Drilling Fluids Technology to Mining

Reduce Water

Consumption

at the Drill Site

Reduce

Trucking Costs

and Damage to

Local Roads


Baroid Industrial Drilling Products

System 360™ Total Fluids Management™ System


Core Drilling Case Study Project Overview

Project Owner: Minera Hampton Peru

SAC

Drill Contractor: AK Drilling International,

SA

Project: Resource definition drilling

program at the Los Calatos Cu-Mo Mine

Location: Department of Moquegua, 70

km SE of Arequipa in southern Peru

Year: 2011

Goal: Reduce industrial water

consumption and disposal of fluids

Area: Subtropical montane perarid desert

ranging from 2500 to 3000 meters above

sea level

Water transported by truck from the City of

Moquegua, approximately 65 km from

project

All but 10 km of the road is rough gravel

Round trip time for each load of water

hauled by truck is approximately 4 hours

System 360™ Total Fluids Management™ System

Case Study


Project Scope

Use the System 360™ unit with

an engineered fluid to address

the water consumption and

disposal issues and optimize the

drilling operations:

Rigs at Los Calatos had been

consuming an average 13,000

gallons of water per rig, per day

Each water truck made a round

trip of 130 km to supply 6000

gallons of water. Limited to two

round trips per day.

Additives were needed to treat

high solids in muds, thereby

increasing costs. Used fluids

were disposed of in large

settling ponds for evaporation.

Water costs were in excess of

$50.00 USD per drilled meter.


System 360™ Total Fluids Management™ SOLUTION

Use a highly efficient mud mixing system coupled with a patent-

pending flocculent additive process which concentrates and

removes solids from spent drilling fluid on a core rig.

Remove fine solids allowing re-use of a fluid that would normally be

discarded.

Create cross-linked structures in the fluid containing the solids which

can be quickly separated from the water phase.

Cleaned drilling fluid is directed back to the active circulating

system.

Water generated in the final filtration step can be returned to the

mixing tank to mix new drilling fluid.




System Floc-360™ Flocculent

Aqueous polymeric flocculent causes rapid flocculation of the

drilled solids exposed to PHPA polymer in the drilling fluid.

Mixing occurs within the System 360™ solids separation unit.

Once the flocculation of drilled solids and PHPA polymer occurs,

flocculants are produced, which are separated from the liquid

phase in the filter bags.


System Floc-360™ Flocculent

Flocculants are easily disposed of in a semi-solid form using the

bagging feature on the System 360™ unit.


System Floc-360™

Clean water recovered from the drill fluid is returned to the holding

tank for reuse in the mud mixing tank.


Project Results

Drilled from surface to 1,137 m. (52 shifts worked)

Fluid Treated – 416,000 (Ltrs.)

Water Recovered – 187,200 (Ltrs.)

Fluid cleaned and returned to system for drilling – 137,800 (Ltrs.)

Water consumption prior to using System 360™ - 13,000 gal/day

Water used when running the System 360™ - 2,789 gal/day

Total water savings using the System 360™ - 10, 211 gal/day

A total of 72, 514 gallons of water were used during the 26 days of

drilling the hole, an average of 2,789 gallons per day.

Total water consumption was reduced by 78.5%.

Total water savings on this hole was approximately 265,486

gallons




Economic Value Created

Use of the System 360™ reduced water usage by almost 80%.

Safety was enhanced by the substantial reduction of water hauls

and truck time traversing rough terrain.

Drill sump size was reduced by 90%, reducing disposal costs.

No stuck tubes or broken lines occurred using the System 360™,

indicating cleaner fluid with less solids to centrifuge inside the rods

and tube heads.

Water separated by the System 360™ unit was re-used for the

preparation of new drilling fluid.

Because the System 360™ unit effectively removed fine clays from

the drilling fluid, the amount of additives necessary to maintain the

mud system was greatly reduced.

Drill crews were easily trained to use the system.




GSE Liner Technology, Inc.

Regulatory Concerns/Variables

Develop Strategic

Partnerships

Utilizing Shale Oil &

Gas Mud Fluids

Technology to

Create Enhanced

Water Containment

Products.

BARA-KADE™ 30 LP

High performance

granular engineered

barrier bentonite for

sealing and

containment in

chemically complex

near surface

environments.

BARA-KADE™ CR

High performance

granular polymer

enhanced barrier

bentonite for sealing

and containment of

harsh coal ash

contaminant

environments.

USES

Mud Pit Ponds

Flow-back Water

Ponds

Fresh/Potable Water

Impoundments

Temporary Surface

Impoundments

Coal Ash Ponds

Site Owner Objectives

Geosynthetic Clay Liners (GCL)


Mine Pit in South America

Stormwater Pond in South America

Shrimp Pond in Asia Diamond Mine in Europe

Landfill in AsiaCoal Ash Pond in the U.S.

Reservoir in Thailand

Decorative Pond in the Middle East Landfill in the U.S.

Diverse Applications


BARA-KADE™ DWD (Dry Waste Disposal)

Liquid Waste Solidification – Drill Cuttings and Fluid


CHALLENGE:

Replace current technology to solidify/stabilize wet solids/liquid

Reduce volume of waste generated by current methods

Meet all Class II Landfill (Non-Hazardous Waste) Regulations

Reduce cost of disposal for the operator

SOLUTION:

A proprietary, patent-pending blend of unique reagents

Highly effective low-dose application

Utilize existing equipment to meter and mix the additive for

precise loading and cost control

RESULT:

Reduced Volume – Waste volume cut by 50%

Lower Cost – Lower transport and landfill dumping fees

Reduced Transit Risk – Eliminates transport of liquid waste

Meets Regulatory Requirements – Passes EPA Tests

BARA-KADE™ DWD (Dry Waste Disposal)

CASE STUDY


Water

Purification

Contaminants

Absorption

Ion Exchange Technology – Zeolite Molecular Sieve


Natural zeolites are hydrated

aluminosilicates.

There are over 40 natural zeolite

minerals with similar structures and

molecular makeup, all with their own

particular attributes.

U.S. commercial zeolite deposits are

located in Arizona, California, Idaho,

New Mexico, Oregon, Texas and

Wyoming.

Zeolites are used commercially for

several reasons:

• Unique Absorption

• Ion Exchange

• Molecular Sieve

• Catalytic Abilities

Zeolite pore structure

36

What is a Zeolite?


Types of Zeolites – St. Cloud Mining

Bowie

Chabazite

Ash Meadows

Clinoptilolite


38

Water Purification Applications

Water Treatment Products

Clinoptilolite and chabazite based

products for ion exchange

applications

SCM proprietary functionalized

mineral based zeolites are fast,

reliable, low-cost water treatment

alternatives to chemical treatment

and activated carbon

NSF 60 Certified for Potable

Water Treatment Systems

NSF 50 products for swimming

pools


Kurion - Goal: Create 1st Ever External Reactor Water

Cooling System Using St. Cloud Chabazite

Unprecedented Challenges: Saline Oily Water, Volume, Schedule, & Mother Nature

Approximate volumes:

67 500 MT of highly contaminated water (April 20)

+ 800 MT/day cooling water, rain, in-leakage

120 000 MT of highly contaminated water (June 28)

Additionally:

• Near continuous aftershocks to > Magnitude 7

• Summer Rainy Season came early – mid May

• Many unknowns about site conditions

• Protestors, police, camera crews on streets

1200 MT/day

Cesium

Removal

System

Oil Removal

System

Salt Removal

System

Lagoon has

~120 000 MT

of water

Contains ~200 MT of oil &

grease from Turbine

Buildings

Fukushima Daiichi Nuclear Plant


Proposed Applications at Fukushima Using Lessons

Learned in the Shale Oil & Gas Boom


Thank you. Questions?



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