permianunconvenonalwatermanagement ...decision(analysis:(integrated(mul>disciplinary(team(•...

Permian Unconven-onal Water Management: Collabora-on to Develop Full Cycle Solu-ons

Presented by Kris-e S. McLin ConocoPhillips Company

September 27, 2016

ConocoPhillips’ Global Water Sustainability Posi>on

September 27, 2016 2

h?p://www.conocophillips.com/sustainable-‐development/our-‐approach/living-‐by-‐our-‐principles/posi>ons/Pages/water-‐sustainability.aspx

Introduc>on

•  ConocoPhillips is commi?ed to crea>ng a responsible water management plan in the Delaware Basin of West Texas

•  Limited surface and groundwater resources available for use in large mul>-‐frac s>mula>ons

•  Oil and gas wells in the area produce significant amounts of water that tradi>onally require disposal in injec>on wells

•  Tremendous opportunity available to reuse produced water for comple>ons

•  Developing a holis>c and flexible water management strategy requires an integrated interdisciplinary effort to address the full life cycle of water



Loca>on

Delaware Basin

•  The Permian Unconven>onal asset is accessing a stacked play with mul>ple produc>ve intervals

•  Water supply, transfer, and disposal can represent an average of 20% of well comple>on costs

•  Water to oil ra>os are typically above 1:1 for all forma>ons accessed for produc>on, so produced water disposal cost can represent over 25% of li[ing costs

•  During explora>on and early development, minimal infrastructure is in place to support water demand for comple>ons and produced water disposal

•  Produced water reuse in comple>ons could mi>gate both water supply and produced water disposal limita>ons


Holis>c Water Management

All water management solu>ons must meet the following criteria: •  All solu>ons must be safe, environmentally responsible, sustainable, and economic

•  All water required for hydraulic fracturing opera>ons delivered in a >mely manner to meet the development schedule

•  Minimize trucking/hauling of water whenever appropriate •  Reuse produced water for s>mula>on whenever appropriate

•  Reuse or dispose of all produced water such that produc>on targets can be achieved


Decision Analysis: Integrated Mul>disciplinary Team

•  Completions and Drilling Engineering •  Reservoir Engineering •  Development Engineering •  Geoscience •  Technology •  Strategic Sourcing, Supply Chain •  Operations and Production •  HSE •  Land, Surface, Legal, Regulatory


Source

Store

Transfer

Reuse

Dispose Add maximum value to

the Delaware Basin development plans by

managing the water cycle to safely and reliably

provide water sourcing, transfer, storage, reuse,

and disposal.

Decision Analysis: Process


Water Management Strategy as Con>nuum

•  Ini>ally, the team had set out to select one strategy for implementa>on that would fit all required criteria

•  As the team detailed and evaluated the strategies, it became apparent that water management strategy was a con>nuum from short-‐term into the full field development plan

• With this shi[ in thinking, the team was able to enact short-‐term strategy that could immediately improve costs without immediately and extensively inves>ng in infrastructure


Short Term Solu>ons Meet Long Term Objec>ves

•  Op>mize capital investment for short and long term cost reduc>on

•  Install infrastructure that enables flexibility and choice for short and long term

•  In-‐field gathering for flexibility and op>onality in disposal or reuse

•  Central gathering and distribu>on loca>ons

•  U>lize technology and temporary solu>ons


Produced Water Reuse: Water Treatment Goals

•  The produced water must not pose a safety risk to opera>onal personnel

•  The water treatment process must be cost effec>ve and fit for purpose

•  The produced water must perform comparably to the fresh water that was used before in fracture s>mula>ons

•  The produced water must not cause any long term produc>on issues or “life of the well” problems


Produced Water Reuse: Treatment

•  The basic equa>on for iron’s reac>on with hydrogen peroxide is shown below:

•  The product (ferric hydroxide) is precipitated out in mildly basic condi>ons

•  The addi>on of H2O2 ini>ally lowers the pH as OH-‐ is consumed •  Adding caus>c can help the iron form a colloid so it can be filtered



•  As the pH increases, the Fe2+ (ferrous) oxidizes to Fe3+ (ferric))

• Oxidizers make this reac>on instantaneous

• Mul>ple chemicals can be used for iron removal, but H2O2 is easily available and very effec>ve


Stumm and Morgan, 1996

Op>mized Process, Op>mized Costs


• High rate clarifier for treatment efficiency

•  Lower chemical consump>on

•  Improved solids management

•  Flexibility allows for op>mized capital investment

Results and Conclusions

•  Collabora>ve development of full cycle water management solu>ons has driven immediate and near term cost reduc>on, including 50% reduc>on in disposal cost with strategy implementa>on

•  Line of sight to favorable long term economics, sustainability, and resource security for Delaware Basin assets

•  Strategy development should be shared amongst various resources and disciplines to address all stakeholder concerns

•  Strong communica>on and collabora>on are required to ensure short term strategy decisions will not impair long term strategic goals


Acknowledgements/Thank You/Ques>ons

•  As referenced mul>ple >mes in this paper, this work is the collabora>on of asset management, team leads, and dedicated individual contributors. The authors would like to thank the en>re Midcon>nent Business Unit and Lower 48 water management team for their contribu>ons to this study. Addi>onally, the authors would like to thank the asset management and ConocoPhillips for allowing us to publish this paper.

•  Photos originally published in Spirit Magazine Q3 2014, Q4 2015 (Jan Hester, Gus Morgan, Patrick Currey, Hall Pucke?)


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