The 3 Pillars of WMS webinar Final

Surface Field Development and
The 3 Pillars of Water
Management Strategy
Webinar – Sept 19, 2016
Adding Value to your Business
Lorenzo Hernandez P. Eng. &

• The Three Pillars of Water Management Strategy – (1 of 4)
• Water Balance - The Three Pillars of Water Management
Strategy (2 of 4)
• Water Chemistry & Treatment - The Three Pillars of Water
Management Strategy (3 of 4)
• Transportation - The Three Pillars of Water Management
Strategy (4 of 4)
• The Three Pillars of Water Management Strategy Webinar.
https://ca.linkedin.com/in/lorenzohernandezpeng
The Series
Lorenzo Hernandez P. Eng. / https://ca.linkedin.com/in/lorenzohernandezpeng
P2

Where are we?
 The potential of Shale gas in Alberta and BC is massive – Many
players.
 Gap between development, design, and operations.
 If common issues are overlooked, water can be a constraint – Not
desired.
 Issues such as transportation and trucking costs, lack of water
storage and supply sources, and water incompatibility are some of
the most common problems that any particular operator must face.
 A systematic approach will help to close the gaps created between
development, design, and operations. That systematic approach is in
essence a concise Field Development Plan and Water Management
Strategy.
P3

Field Development Plan & Water Management Strategy
• Clear Scope of Work
• Surface Facilities Development
Plan
• Evacuation Strategy
• Stakeholders engaged
• Regulatory Compliance
• Project Portfolio
BUSINESS
PLAN
COMPANIES
DIRECTIONS
MARKETING
STRATEGY
AREAFIELDDEVELOPMENTPLAN
WATER
MANAGEMEN
TSTRATEGY
GAS&OIL
FACILITIES
PLANNING
DRILLINGAND
COMPLETION
EXECUTION
PLAN
P4

KEY COMPONENTS
• Volumetric Calculations - forecast.
• Development Stage & pace
• Risks & Integration Opportunities.
• Environment analysis.
• Community affairs.
• Government and Regulators.
• Existing Infrastructure – leverage.
• Supply Water Sources.
• Disposal Requirements.
Field Development Plan - Water Management Strategy
Oil / Gas Field
P5

Importance of Front End Development
Front End Development
P6

• Identify Opportunities and understand what we get into
• Look wide and understand what are feasible options.
• Concept Selection / Evaluate best and “doable” options.
• Opportunity Framing Session / Execution Strategy.
• Risk Analysis and Impact Assessment.
• Stakeholder Engagement.
• Regulatory Plan
PMBOK's Five-Phase Project Lifecycle
P7

FDP and WMS – Flow Diagram - Map
Water Plan - Volumetric
Assumptions
Givens
Design Basis
Material Balance
Risk & Opportunities
Project PortfolioTimeline / Schedule & Cost
Cost
Drilling /
Completion
Plan
Evacuation StrategyTreatment
Facilities Requirement
Regulation & HSE
F
D
P
-1200000.0
-900000.0
-600000.0
-300000.0
0.0
300000.0
600000.0
900000.0
1200000.0
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
2062
2064
2066
2068
2070
2072
2074
2076
2078
2080
2082
2084
2086
WaterBalance(m3)
Disposal
Make-Up
Flowback
Produced Water
Frac Water
Risks
Likelihood
Low Medium High
Impact
LowMediumHigh
Poor injectivity
on disposal
wells.
Competition for
limited water
sources
Lack of water disposal
options increases OPEX
Water
compatibility
issues –
Treatment may
be required.
Water supply
contract is not
renewed
Hydraulic issues
for water handling
Reduced flexibility of water
handling due to lack of
storage
Transportation of waste
streams across a provincial
border may pose a public
perception risk
Produced
Water
prediction &
forecasting
Disposal forecast
changes over time
P8

Water Management
Strategy Process
P9

Influence
Interest&Support
High
Low
Low High
TRACK (Expectations)
COMMUNICATE
INVOLVE (Education)
ALIGNMENT (Leverage)
Stakeholder Engagement Map
-Unconventional
Upstream
Business
-Community Relation
-Locals, aboriginal
-Regulatory & Environmental bodies
-Marketing
-Government
-Government
Agencies
-JV’s Partners
-Service Industry
-Existing O&G
Industry
-Unions/Syndicate
-Local Manufacturing
Industry
-Midstream
Business
-National O&G
Company
P10

Risks
Likelihood
Low Medium High
Impact
LowMediumHigh
Poor injectivity
on disposal
wells.
Competition for
limited water
sources
Lack of water disposal
options increases OPEX
Water
compatibility
issues –
Treatment may
be required.
Water supply
contract is not
renewed
Hydraulic issues
for water handling
Reduced flexibility of water
handling due to lack of
storage
Transportation of waste
streams across a provincial
border may pose a public
perception risk
Produced
Water
prediction &
forecasting
Disposal forecast
changes over time
P11

Opportunities
Likelihood
Low Medium High
Impact
Low
Medium
High
Water Interconnection between
operating areas
Make-up water
requirement
decreases
under
concurrent
development
scenario
Full integration with
existing water facilities
Disposal to
company
owned
disposal well
or 3rd Party
wells.
Area and operations well known
by company personnel.
Potential synergy and
integration with
neighbouring
companies for supply
and disposal
P12

P13

Cumulative Effect over time
• Environment-Friendly Field
Development Plan.
• Feasible and reliable water forecast.
• Alignment between Drilling Execution
Plan and FDP will benefit with less
disposal costs and less required
storage capacity.
• Exploring the use of removable
storage facilities.
• Synergies and integration.
P14

STORAGE /
TREATMENT
/ RECYCLING
/ FACILITY
Water
Sourcing
Make
up
Water
Wastewater
Treatment /
Disposal
Produced
Water /
Flowback
Hydraulic
Fracturing
Key Input Affect or be
affected by:
Water forecasting Well Testing &
Flowback
Frac Design /
Reservoir Conditions
Volume per Frac.
Water chemistry /
Reservoir Conditions
Treatment /
Recycling / Make
Up / Disposal
Drilling Execution
plan
Short Term
Material Balance
Field Development
pace
Med-Long term
material balance
Environmental /
Regulatory
Cumulative Effects
Synergies Sourcing &
Disposal
Non-technical Risk /
Considerations
Permitting /
Schedule / Cost /
Others
Type of Storage Footprint / Cost /
Re-Use
P15

Forecasting – Why so important?
• Water produced by wells over life – Big ??
• Required reliable Reservoir Type Curves
• Uncertainties Management Skills and tools
• Historical data management
• Pilot well test and evaluations
• Data reconciliation
• It is not a guess
P16

Source / Make-Up & Disposal Options
• Fresh Water from lakes, rivers and
municipal supplies (subjected to
Water Withdrawal Bans).
• Recycled water from other facilities.
• Water from water treatment plant.
• licensed disposal wells (well
injection)
• Treatment & Disposal Facilities
• Export for use in other fields / areas.
P17

Synergies and Integration - Leverage
• Growing the business in an
environmentally-friendly manner.
• Concurrent development may reduce
the amount of disposal.
• Water Facilities Integration – Different
areas could be attended by same
water infrastructure.
• Disposal volumes can be substantially
reduced by maximizing water
recycling or transferring.
P18

Long Term Water Balance
A proper Long Term Water Balance will allow:
• To see a longer term forecast & a picture of the entire development plan.
• Identify long term required commercial or capital commitments.
• Identify major risks and water balance “busts” far enough in the future.
• Identify the most feasible and reliable evacuation strategy.
-1200000.0
-900000.0
-600000.0
-300000.0
0.0
300000.0
600000.0
900000.0
1200000.0
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
2052
2054
2056
2058
2060
2062
2064
2066
2068
2070
2072
2074
2076
2078
2080
WaterBalance(m3)
Disposal
Make-Up
Flowback
Produced Water
Frac Water
P19

Medium / Short Term Water Balance
A proper Medium / Short Term Water Balance will:
• Allow the use of recycled water and supplement as needed with make-up.
• Allows us to minimize water disposal.
• Water Balance can be optimized working with the Completion schedule.
• Allows the opportunity to trade water with other neighbouring companies.
Storage Capacity
Well
Well
Well
Well
P20

Water Sampling
and Analysis
Identify Primary
Problems
Scope Water
Treatment
Solutions
•Representative
•Good Sampling Practices &
Procedures
•Approved Sampling Stations
•Approved and Recognized Analyst
•Salinity / TDS
•Oil Carryover
•Bacteria
•Scaling (mixing)
•Corrosion
•Reservoir incompatibility
•Control Water Solubility
•Water Dilution
•Filtration
•Inhibitors
•Avoid Mixing Waters
From the top to the bottom
P21

Water Treatment Challenges
• Engaging reliable companies to address
compatibility issues and identify cost-effective
solutions.
• Reliable subsurface data.
• Chemical Injection and Treatment Locations.
• Alignment the water treatment location and capability to where
the issue in the water cycle is.
• Finding a mix of chemicals that work with the lower quality water
instead of building an expensive water treatment plan.
P22

Types of Water Treatment
• Internal Treatment – use of water treatment chemicals such as
scale inhibitors, corrosion inhibitors, dispersants, biocides,
others.
• External Treatment – use of Water Treatment systems such as
filters, softeners, evaporators, membranes, electrocoagulators,
clarifiers, and also deoiling systems such as API separators, IGF,
DGF, ORF
P23

Water Treatment Technologies Commonly
Used in Hydraulic Fracturing
• Coagulation
• Flocculation
• Clarification/Settling
• Filtration/ORFs
• Ion Exchange
• Reverse Osmosis
• Ultrafiltration
• Nanofiltration
• MVC Evaporators
• Crystallizers
• Dissolved Gas Flotation
• Ceramic Membranes
• Electrocoagulation
P24

Water volume
Water sources
Disposal availability
Regulatory frame
Waterquality
Development stage
Storage location
Environmental frame
Cost
Safety
Pipelines
Trucking
Railway
P25

Transportation Challenges
TRUCKS
• Social impact - Community
complaints
• HSE Risks & exposure
• Emissions
• Cost structure
• Water sources and disposal
locations
• Regulatory requirements
PIPELINES
• Cost structure
• Pipeline material / corrosion
mitigation
• Pumping requirements (and
power)
• Terrain profile – backpressure
build up
• Gas pockets and liner failures
• Right of way not available
TRAINS and/or COMBINATION
• Hauling costs - Cost structure
• Noise associated with rail terminal
• Public perception of moving fluids
• Social impact - Community
complaints
P26

Considerations while selecting Pumping
Alternatives
STORAGE /
TREATMENT
/ RECYCLING
/ FACILITY
Water
Sourcing
Make
up
Water
Wastewater
Treatment /
Disposal
Produced
Water /
Flowback
Hydraulic
Fracturing
• Sourcing and storage location
• Interconnection between operational areas
• Wellpad water handling philosophy (dedicated
or centralized)
• Water disposal solution and locations
• Fracturing and Completion design (volume per
fracturing and pressure) Reservoir conditions.
• Type and amount of friction reducers
(additive) – Reduce pressure needed to pump.
• Cleaning and Flowback process
• Pipeline Network availability
P27

• Surface Field Development Plan & Water Management Strategy
- 3 Days Course
• Lunch & Learn Sessions
• Surface Field Development Plan.
• Water Management Strategies.
• Water Treatment.
• Pumping in Unconventional Business
Working in Progress
For more details please contact: lorenzoh77@shaw.ca
P28

Q & A
Thanks
P29

• Surface Field Development Plan (short, medium and long-term planning for Facilities and
Pipelines, including compression, gas processing, 2-3 phase separation, pumping, power
supply and storage).
• Facilities Support for Business Proposal and Opportunities.
• Translating Oil, Gas and / or Water Management / Operational issues into clear Scope of Work
• Hydraulic Analysis and Engineering Design (Oil, Gas, Water and Multiphase)
• Opportunity Framing sessions, Preliminary Designs, Feasibility Studies, Concept Selection,
Basis for Design, Project Development Plan, and NTR Risk Assessment.
• Risk Analysis (HAZOP, HAZID, What if, TECOP based Project Risk Analysis).
• Process Design, Safety in Design.
• Equipment sizing (compressors, pumps, separation, metering, others)
• Water Management Strategy – Supply, Makeup, Storage, Treatment and Disposal. Short, Medium
and Long Term Water Material Balance. Synergies.
P30

The 3 Pillars of WMS webinar Final

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