INNOVATION IN THE OILFIELD:
How Best Management Practices Have
Reduced the Impacts of Shale Development
Presented By:
Nathan Alleman (ALL Consulting)
Authors:
Nathan Alleman, J. Daniel Arthur, P.E., SPEC, and Mark Faucher (ALL Consulting)
Presented at:
22nd International Petroleum Environmental Consortium Conference
Denver, CO
November 17-19, 2015
OUTLINE
• Introduction
o BMP Purpose
o Benefits of BMPs
• BMP Process
o BMP Development
o BMP Theory in Action
• BMP Examples
• BMP Management
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INTRODUCTION
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What BMPs ARE and ARE NOT.
ARE:
• Technologies, practices, and procedures used to
avoid, minimize, or mitigate impacts.
• Facilitate regulatory compliance.
ARE NOT:
• Assurance of 100% impact avoidance
• Universally Applicable
AVOID
MINIMIZE
MITIGATE
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Regulatory Process Limitations
• Impacts analyzed based on a snapshot of
Study Begins
the practices at a single point in time.
Information Gathered
(months)
• Analysis and review of original practices,
while new practices evolve due to:
– Technology
Impacts Analyzed
– Research
(years)
– Training
Decision Made
• Decisions made based on practices that
are outdated or non-existent.
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BMP PROCESS
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BMP Process
• Continuously identify problems and implement solutions.
• Adapt solutions to site specific issues and conditions.
Implementation
Evaluation
Innovation
Operation
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What Drives BMP Evolution??
Innovation initiated by Drivers of Change or new Inputs.
Drivers of Change
• $$ (Cost savings/Profit/Investors)
• Litigation Risk
• Public Pressure
• Regulatory Compliance
• Landowner Relations
• Environmental Concern
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Inputs
• External Information
• Technology
• Training
• Internal Experience
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BMP Theory/Process
OPERATION
EVALUATION
INNOVATION
ENVIRONMENTAL
CONCERN
PUBLIC
PRESSURE
Implement
Practice
$$
YES
NO
Is the practice in line with
Drivers of Change?
EXTERNAL
INFORMATION
Adapt
Practice
LITIGATION
TECHNOLOGY
RISK
LANDOWNER
RELATIONS
TRAINING
INTERNAL
EXPERIENCE
REGULATORY
COMPLIANCE
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Example: Fresh Water Transfer Piping
BMP: Switching from aluminum pipe, which has a tendency to leak at joints,
to HDPE or “lay flat” pipe.
Benefit:
• Fewer leaks
• Increased durability
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BMP Theory in ACTION
OPERATION
EVALUATION
Transporting Fresh
Water via Truck
NOT in-line with drivers:
• Too Many Spills
• High Transport Cost
Transporting Fresh
Water via Aluminum
Pipeline
In-line with drivers:
Fewer Spills
Reduced Emissions
Less Traffic
Lower Transport Cost
•
•
•
•
NOT in-line with drivers:
• Water Loss (joint leaks)
• Not Durable (spills)
INNOVATION
Transport Fresh
Water via Aluminum
Pipeline
Switch to HDPE and
“Lay Flat” pipe.
Process Continues …
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BMP EXAMPLES
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Longer Laterals
BMP: Operators are finding that increasing lateral lengths leads to improved
economics (higher production at lower cost).
Benefits:
• Increased Profit/Cost ratio
• Reduced land disturbance
• Reduced community impact
• Reduced emissions
Source: Rex Energy
Source: Anadarko Quarterly Update
Anadarko –Lateral Lengths (Marcellus)
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Rex – Lateral Lengths (Marcellus)
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Increasing Drilling Efficiencies
BMP: Using skid- and walking-rigs and process efficiencies to decrease
drilling times.
Benefits:
• Reduced emissions
• Reduced operating costs
• Reduced community impact
Source: Anadarko – 4thQuarter 2014
Anadarko – Drilling Efficiency (Eagleford)
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Well Pad Construction
BMP: Improved well pad design which include pad drains, perimeter berms,
and multiple layers of ground cover to contain contaminated fluids on the pad in
the case of a spill.
Benefits:
• Reduced water quality impacts
• Increased well pad stability
Previous
Current
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Water Monitoring
BMP: Monitoring water availability in real time (telemetry) using stream flow
and pond level modeling.
Benefits:
• Precise knowledge of water availability.
• Immediate pond leak notification.
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BMP MANAGEMENT
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How do we manage BMPs?
What constitutes effective BMP management??
1. Continuously updated repository.
• Add new BMPs
• Update existing BMPs
• Delete outdated BMPs
2. Organization-wide communication and integration.
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BMP Repository
Database framework for BMP Management
• Searchable (keyword, category, etc.)
• Easily Updated & Distributed
• Drill Down Structure
BMP DATABASE
keywords ...
Affected Resource
Development Activity
Water Sourcing
Location
Water Management
Air Quality
Drilling & Hydraulic Fracturing
Change Driver
Search
Reset
• Reduces need to wade through
extensive list
• Multiple paths to same BMP
Waste Management
Waste Treatment
Facilities
Waste Management Plan
Produced Water Management
Drill Cutting Management
Transportation
Storage
Radiation Protection
Haz. Waste Management
Treatment/Recycling
...
Waste Minimization
Waste Segregation
Disposal
...
On-Site Recycling/Treatment
...
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Communication & Integration
• Communicate BMPs to all functional groups:
• Disseminate changes to all groups
• Continuous Training & Education
• Integrate BMPs into operational processes.
• Coordination between groups to properly ensure proper employment
HSE-R
Drilling
Land
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Summary
• Decisions to ban or limit oil and gas development are being
made based on practices that are out of date.
• Practices are being continuously improved and adapted to
reduce impacts while allowing development of important
resources.
• Proper implementation of the BMP process has and will allow
for continuous improvement of oil and gas development
practices.
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Contact Information:
Nathan Alleman
ALL Consulting
O: 918.382.7581
nalleman@all-llc.com
Citation Information:
Nathan Alleman, J. Daniel Arthur, P.E., SPEC, and Mark Faucher (ALL Consulting). “Innovation
in the Oilfield: How Best Management Practices Have Reduced the Impacts of Shale
Development.” Presented at the 22nd IPEC Conference. Denver, CO. November 17-19, 2015.
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