Water Online the Magazine gives Water & Wastewater Engineers and end-users a venue to find project solutions and source valuable product information. We aim to educate the engineering and operations community on important issues and trends.
Issue link: http://wateronline.epubxp.com/i/255370
ment for drilling operations has grown due to environmental regulations and operators' understanding of the significant costs associated with the fracking process. Furthermore, in Bakken Shale (North Dakota), freshwater for fracking is not the only process that is water-intensive. Freshwater for "main- tenance water," as it is called, is being used to continue the oil flow. Without it, salt buildup from the briny groundwater will restrict the flow of oil, block the wellbore, and damage the pumping equipment. Hence operators are required to consume even more freshwater for aiding the flow of the oil. This is an interesting industry dynamic, as in the Canadian oil sands, the high viscosity of the oil/bitumen requires water to help increase flow rate. In North Dakota, the addi- tional maintenance water is used to increase oil flow due to blockages from brine buildup. Recycling the produced water, which is high in brine concentration, would be a good option. This would reduce overall freshwater consumption, reduce on-site trucking, and create a byproduct that can be used for deicing in harsh winter climates. However, the use of cross- linked gel fracs in specific basins is more difficult and expensive to recycle for water treatment companies and drives costs up instead of reducing costs. Slick water fracs will be important to maintain steady and lower prices. The misconception over the last few years in the wastewater industry that a singular development at one shale play would apply to all basins has, at times, created widespread joy and excitement of industry best practices for greater water management. However, this indicates a failure to understand the dynamics of a single, particular basin. The topography and groundwater quality varies significantly enough in certain basins that it is common for different water management techniques to be implemented. Bakken Shale produces greater volumes of wastewater compared to other shale plays, requiring for wastewater treatment equipment such as thermal evaporators and distillation systems. The impact on drilling is critical because, if the price of freshwater increases too much, it will not be economical for wells to be drilled. In the Permian Basin (Texas), strategies to use alternate sources of freshwater are being deployed by operators. This includes brackish water and recycling — reusing the produced water from the well. In Colorado, there is a slow trend for recycling wastewater, but currently the favored method is using disposal wells. This is likely to change due to the need for reusing the wastewater and also to eliminate the trucking of wastewater to injection wells. Tapping The Water Market A possible scenario is an increase in privatization of water sources. We may see investors buy land that has access to groundwater within close proximity to oil and gas drilling. This type of trend may seem likely if the industry fails to reuse and recycle enough wastewater for the fracking pro- cesses. This will lead to the price of water becoming very high — some investment firms are rightly calling it the com- modity product of the 21st century. This will, in turn, raise the bottom-line costs for explo- ration and production, and thus the price of oil. The fact that water consumption is a critical element for hydraulic fracturing has put a huge emphasis on the effective management of water in drilling operations. Historically, operators for drilling, completion, and production have worked independently from each other to complete the respective jobs. However, an increasing focus for integrating operational silos generates significant cost savings for water management in the field. In order to maintain long-term reservoir performance, operators will need to understand the total water life cycle from a holistic perspective, to make better use of the reuse and recycle options available in the industry. Global markets instantly recognize the value of natural resources such as oil and gas, but now the value of water in all forms — clean, highly contaminated, briny, brackish, or seawater — will be even more important. Without proper management of water, the unconventional oil and gas industry will struggle for as long as the hydraulic fracking process is being utilized. Operators are looking at the prices of freshwater sourcing, which may be logistically cheaper, but as supply falls and demand rises, so will the price. The biggest challenge to the unconventional shale industry is freshwater consumption, and wastewater recycling and reuse is the key to the future for unconventional drilling. Hydraulic Fracturing wateronline.com ■ Water Online The Magazine 28 Ankur Jajoo is an industry analyst in Frost & Sullivan's Environment & Energy Group with four years of consulting experience in market research and growth. His industry expertise includes water and wastewater management in oil and shale gas, petrochemicals, biosolids handling, and power generation. Trucking has often been blamed for road damage, noise and air pollution, and spillages. Here, trucks move to a drill site in Weld County, CO. (Photo Credit: Bruce Finley, The Denver Post) 2 6 _ V E R T _ 0 2 1 4 E Z i n e _ F r o s t - S u l l i v a n _ D G . i n d d 2 26_VERT_0214 EZine_Frost-Sullivan_DG.indd 2 1 / 3 1 / 2 0 1 4 1 : 1 4 : 4 9 P M 1/31/2014 1:14:49 PM