Water Treatment Market Opportunities in Unconventional Oil & Gas

1. Water Treatment Market Opportunities
in Unconventional Oil & Gas
Tyler Algeo,
Senior Research Analyst,
Head of Unconventional Fossil Fuel and Water
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2. O2 Environmental Overview
O2 Environmental
(Consultancy)
BlueTech Research
(Intelligence Service)
BlueTech Forum
(Annual Conference)
May 14th, 2013
Amsterdam, The Netherlands
O2 Technology Assessment
Group (TAG)

3. The BlueTech Research Team
at the 2013 BlueTech Forum
Our scientists and engineers are experts in water
technologies and the global water market.

4. Office Locations
North AmericaEurope
Asia
(planned 2014)

5. What we do
Actionable Water Market Intelligence & Strategic Support
 BlueTech Innovation Tracker
 Company Reports
 Monthly Intelligence Briefings
 Insight Reports on Markets &
Technologies
 Webinars on Hot Topics
 Analyst Access
• Strategic Support
• Commercialization Support
• Acquisitions Pipeline Support
• Investment Due Diligence
• Business Development
• Custom Research
• Market Intelligence

6. Four Core Practice Areas
 Water Re-use and Alternative Water Sources
 Unconventional Fossil Fuels and Water
 Energy and Resource Recovery
 Smart Water

7. What Clients Use our Service for
 Identify new market opportunities and areas for growth
 Competitor Analysis & Technology Analysis
 Analyzing water technology patent trends and identifying
water technology licensing, investment and acquisition
opportunities
 Other Benefits:
– Educational tool for engineers and scientists in the
organization
– Identification of strategic partners
– Support in identifying R&D directions, and unique solutions
for client problems

8. Shale Gas in Context
Gas
Source
0%
Conventional
56%
Tight
10%
Shale
28%
Coalbed
6%
Other
44%
Remaining technically recoverable natural gas resources by
type, end-2011
Source: www.worldenergyoutlook.org

9. What is produced water from shale gas?
Typical depth
>3,000ft
(914m)
Frack Fluids
Flowback, mostly Frack Fluid
Produced Water
– formation water and
Frack Fluids
Initial Fracking up to a few weeks
(large volumes)
Ongoing Produced Water
(small volumes)
Flowback Ongoing Produced Water

10. Produced Water Volumes Over TimeProductionRate
Producing Time (up to a month)
Water
Shale Gas

11. By mass the primary contaminant is Salt
1
10
100
1000
10000
100000
1000000
TypicalConcnetrationRange(mg/L)
Contaminant

12. Technology Trends
TSS
Electrocoagulation
Sock Filter
Clarifier
Oil &
Grease
Dissolved Air Floatation
Induced Air Floatation
Walnut Filter
Bacteria
Chlorine disinfection
UV disinfection
Ozone disinfection
Primary treatment technologies are mostly generic
Metals
(Ba, Sr)
Chemical Precipitation
(Sodium-
Sulfate, Lime, etc.)
Ozone
Electrocoagulation
Hardness Lime and soda ash
Iron (Fe) Precipitation with NaOH
Sulfate
Precipitation with
BaChloride
Membrane (Nanofiltration)

13. Proprietary technologies tend to be
desalination technologies
Reverse Osmosis Evaporator Crystallizer
< 45,000 ppm 45,000 – 120,000 ppm 120,000 – 300,000ppm
Technology Used
TDS Concentration
Primary
Treatment
Only
50%
Primary and
Desalination
Treatment
21%
Desalination
Treatment
Only
29%

14. Key Market Trends in Shale Gas
Produced Water Treatment
• The route to market is through Oil & Gas Service
Providers
• Disposal of Produced Water is dominated by ‘truck and
haul’ to disposal wells
• On-site reuse for fracking instead of treatment for
discharge is resulting in reduced treatment requirements
– Reuse driven by challenges in both disposal of Produced Water
and in sourcing fresh water for fracking
• Innovative water treatment technologies in the shale gas
produced water space tend to be thermal treatment
technologies and some membranes

15. Water Treatment in the
Alberta Oil Sands
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16. In-Situ or Mining Depends on Depth of
Overburden
Photo Source: University of Alberta

17. InSitu Oil Sands Production
 Cyclic Steam Stimulation (CSS)  Steam Assisted Gravity Drainage
(SAGD)

18. Produced Water
Treatment
(Deoiling)
Skim Tank
Induced Gas
Flotation
Depth Filter
Water Treatment
(Conventional)
Warm Lime
Softening (WLS)
Depth Filter
Weak Acid
Cation Softener
Water Treatment
(Alternative)
Evaporator
OTSG Steam
GenerationMakeup Water
SAGD Treatment Train Options
DRUM Boiler
Steam Generation

19. Trends in Water Treatment Technologies
in the Oil Sands
Mining
Steam Extraction
Once Through Steam
Generators
Conventional Treatment
(WLS, Filter, WAC)
In-Situ
Research into non-water based
extraction methods
DRUM Boilers
Use of Evaporators

20. Key Market Trends in Oil Sands
Produced Water Treatment
• The primary route to market for treatment equipment is
through selling to E&P.
– Extraction is a water based process – any setback in water
treatment is lost oil production
• The industry is interested in robust technologies that are
simple, have a small footprint, and are modular.
– New technologies must be proven through extensive piloting
– Primarily targeting oil removal (as well as silica, hardness, and
dissolved organics)
• Innovative water treatment technologies in the oil sands
tend to be thermal treatment technologies and some
membranes

21. Research into Alternative Treatment
Trains
 Veolia CeraMem has been piloting Ceramic Membranes
 COSIA has been piloting Ceramic Membranes
 Testing of membranes as pre-treatment for RO
Pre-Treatment Reverse Osmosis Steam Generator
Evaporator
100% 75%
25%
25%

22. Evaporative and Membrane
Technologies
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23. Ceramic Membranes in Water and Wastewater
are Predominantly Monoliths/Multichannel
Elements
Ceramic Membrane
Materials in order of
Prevalence
- Al2O3
Alpha-
Alumina
TiO2 Titania
SiC
Silicon
Carbide
ZrO2 Zirconia
SiO2 Silica
ɣ - Al2O3
Gama -
Alumina

24. Ceramic Membrane Advantages to Oil and
Gas Industry
Robust
High Effluent Quality
Simple Process
Modular
Ability to handle high temperature and
pressure
Can feed advanced treatment
(RO, IX, Evap)
Reduced number of unit
processes, footprint
Reduced Installation cost, easy
expansion, suitable for offshore

25. Companies offering or piloting Ceramic
Membranes for the Oil and Gas Industry
 Veolia CeraMem (SiC)
 LiqTech (SiC)
 Hyflux (alumina)
 Purifics (SiC)
 KSM Water (Alumina)
(formerly 3C Membranes)
 Meidensha (alumina)

26. Desalination Technologies
 Most evaporative technologies appear to be
based on Mechanical Vapor Recompression
 Alternative desalination technologies include:
– Membrane Distillation
– Electro-chemical
– Humidification-Dehumidification

27. Examples of Early Stage ZLD Companies
in the BlueTech Research Innovation Tracker
Company Technology Type Development Stage
Memsys Clearwater
Membrane
Distillation
Commercial
Altela
Humidification-
Dehumidification
Demonstration
Scale
Saltworks
Technologies
Humidification-
Dehumidification
Demonstration
Scale
Saltworks
Technologies
Electro-Chemical
Demonstration
Scale
Atlantis Electro-Chemical Pilot Scale

28. Thank you!
www.bluetechresearch.com
tyler.algeo@bluetechresearch.com
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