Water Reuse for Unconventional Oil and
Gas Operations
Prepared for
Energy Summit
Loveland, Colorado
July 10, 2014
Outline of Presentation
• Introduction to AECOM
• Importance of Water to Unconventional O&G Development
• Integrated Wellfield Water Management
• How Technology Can be part of the Solution
Introduction to AECOM
• Safety is the foundation for everything we do
• With approximately 45,000 employees in more than 140
countries, AECOM serves all segments of the oil and gas
industry
• Integrated Solution Provided for Oil and Gas
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Transportation
Environment
Building/Housing
Water/Wastewater
Power
• Global delivery of program and project services from our
operating locations in +140 countries
• Comprehensive services across the oil and gas asset life cycle
Page 3
Importance of Water During Unconventional Oil and Gas
Development
• Water is critical to developing unconventional oil and gas
resources (approx. 5 million gallons per well in Colorado)
• Public perception is that hydraulic fracturing may stress limited
water resources or presents risks to water quality
• Water supplies are finite and regulations only get more stringent
• Responsible water resources management is part of an
operator's Social License to Operate
• Importance of water management and regulatory pressures will
increase over time
Page 4
Changing View of Water in O&G Operations
Historically water was viewed as a by-product or waste
• Handled through disposal or reinjection
Currently – Water is being viewed as part of economic value chain
• Water is an operational requirement for well development (fracking)
• Need to manage wisely to maintain regulatory compliance and public
trust
• Cost – Handling and distribution is approximately 2/3 of overall water
cost; largely driven by trucking
Opportunity to enhance Social License to Operate
• Recycle, re-use and community engagement on water issues
Capital Costs Verses Operational Expense
• Cost reductions may be realized by investing in pipelines to minimize
trucking
Page 5
Water Management Solutions for Shale Gas
Development
Opportunities exist for developing integrated well field and regional
water management strategies associated with unconventional oil
and gas development
Water recycling (during development)
• Becoming an industry standard
• Requires a minimal level of treatment (known technologies – DAF)
• Is largely a logistics issue (having water available when you need it)
• Combination of mobile units and fixed water treatment infrastructure
Beneficial Re-use (after drilling and during operation)
• Industrial
• Agricultural
• Requires a more advanced level of treatment including solids removal
• Reverse Osmosis
Page 6
Market
Oil
Multi-well
Pad
Fluids
pipeline
Gas
Fluids
pipeline
CPF
Multi-well
Pad
Mobile
treatment
Mobile
treatment
Produced
Water
Multi-well
Pad
Water
pipeline
Storage
Reservoir
Stage 1
Treatment
(TSS Removal)
Storage
Reservoir
Multi-well
Pad
Water
pipeline
Multi-well
Pad
Multi-well
Pad
Stage 2
Treatment
Disposal
(Brine)
(TDS Removal)
Other
Industries
Stream
Discharge
Beneficial
Re-use
Irrigation
Aquifer
Recharge
Permits-to-Production (P2P) or
Programmatic Infrastructure Management
AECOM
Project Drivers
Components:
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Permits (land use/env)
Planning
Community relations
H&S services
D/B drilling pads
Infra/road design
Power/energy services
Construction/CM
ENV monitor/reporting
Water management
Produced water treatment
Emergency response
Restoration/reclamation
Scheduling
Cost Control
Contracting
Risk Identification
Master Schedule
Budgeting
Management
Approach
Sequencing
Tracking
Subcontracting
Mitigation
Reporting
Reporting
Design
Metrics/ Reporting
Project Drivers
Work Packages
CM
PM
CM
Technology Can Provide Solutions, But You Need to Ask
• Regulatory Drivers
– Statewide regulation mandating water recycle/re-use
• Scarcity Drivers
– Lack of available water makes recycling more attractive
• Social License to Operate
– Companies decide that its in their best interest to manage water in a
socially responsible manner
• Long-term Financial Outlook
– Investments in infrastructure are financially attractive when viewed
over a longer time frame or when shared between operators
• Combination of the Above
Page 9
Example from Australia – Regulatory Driven
Beneficial reuse of
associated (produced) water
from Coal Seam Gas
production
Integrated water management
and treatment facilities
Long-term water management
strategy to support
beneficial re-use
(agriculture)
Page 10
Scarcity Driver – Toilet to Tap (California)
• Orange County residents get their water from a massive
underground aquifer, which, since 2008, has been
steadily recharged with billions of gallons of purified
wastewater
Page 11
Summary
• Water plays a critical role in developing unconventional O&G
• Managing water for recycle or re-use is best accomplished on a
well field or regional basis
– Requires planning and investment
– Competitive financially when viewed over the long term
• Technological solutions for re-use exist today
• Non-technological drivers play a critical role in driving re-use
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Regulatory
Scarcity
Social License to Operate
Financial
• Technology can provide solutions, but you need to ask…..
Page 12
Thank You
David Ellerbroek – AECOM
david.ellerbroek@aecom.com
720.563.1291
July 10, 2014