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

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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 Portfolio Timeline / Schedule & Cost

Cost

Drilling /

Completion

Plan

Evacuation Strategy Treatment

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

Wat

er

Bal

ance

(m

3)

DisposalMake-UpFlowbackProduced WaterFrac Water

Risks

Likelihood

Low Medium High

Imp

act

Lo

wM

ediu

mH

igh

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

Inte

res

t &

Su

pp

ort

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

Imp

act

Lo

w

Med

ium

H

igh

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

Imp

act

Lo

w

Me

diu

m

Hig

h

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

2082

2084

2086

Wat

er

Bal

ance

(m

3)

DisposalMake-UpFlowbackProduced WaterFrac 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

Wate

r q

uality

Development stage

Storage location

Environmental frame

Co

st

Safe

ty

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: [email protected]


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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