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Produced Water Issues with Shale Gas
           Production


      J. Daniel Arthur, ALL Consulting
              Denver, Colorado
Shale Gas Basins in the United States
Water Management Lifecycle
• Phases of water management for shale gas development:
  – Withdrawal
  – Transport
  – Storage
  – Drilling and fracturing
  – Treatment and reuse/recycle
  – Treatment and disposal
• Each stage is inter-related with produced water
  management
Water Sourcing Issues
• Fresh water volumes
• Location of withdrawal
• Timing of withdrawal
• Re-use /recycling of
  produced water can reduce
  these concerns


                                4
Shale Gas Water Use - 4 Major Shale Plays
• Barnett Shale                                                          • Fayetteville Shale
  10,000 BBLS used for Drilling                                                    1,500 BBLS used for Drilling
  70,000 BBLS used for Fracturing                                                 70,000 BBLS used for Fracturing
  ____________________________________________________________________            __________________________________________________________________

  80,000 Total BBLS Used                                                          71,500 Total BBLS Used
  AssumedWells per Year: 600                                                      AssumedWells per Year: 250
  Projected Total Water Use per Year:                                             Projected Water Use per Year:
  48 Million BBLS                                                                 18 Million BBLS

• Haynesville Shale                                                      • Marcellus Shale
  25,000 BBLS used for Drilling                                                    2,000 BBLS used for Drilling
  65,000 BBLS used for Fracturing                                                 90,000 BBLS used for Fracturing
  ____________________________________________________________________
                                                                                  __________________________________________________________________
  90,000 Total BBLS Used                                                          92,000 Total BBLS Used
  AssumedWells per Year: 200                                                      AssumedWells per Year: 600
  Projected Total Water Use per Year:                                             Projected Total Water Use per Year:
  18 Million BBLS
                                                                                  55 Million BBLS
                                                                         Basin-wide activity based on one operator’s peak year projections.
Well Drilling and Hydraulic Fracturing
                                              • Hydraulic fracturing uses
                                                more water than drilling,
                                              • Fracturing fluid is >99%
                                                water and sand.
                                              • Analysis shows extremely
                                                low probability of fracture
          Image: EnergyinDepth.org 2009
          Source: Compiled from Data            fluid migration from the
          collected at a Fayetteville Shale
          Fracture Stimulation by ALL
          Consulting 2008.                      shale up to fresh water
                                                zones.
Total Water Use – 4 Major Shale Plays

                                                                             Total Water
                      Industrial
               Public              Power                         Shale Gas      Use
 Shale Play              and                Irrigation Livestock
               Supply            Generation                        Wells      (Billion
                       Mining
                                                                              Bbl/yr)

Barnett        82.70%   4.50%      3.70%      6.30%     2.30%      0.40%        11.15

Fayetteville   2.30%    1.10%      33.30%     62.90%    0.30%      0.10%        31.9

Haynesville 45.90%      27.20%     13.50%     8.50%     4.00%      0.80%        2.15

               11.97%   16.13%     71.70%     0.12%     0.01%      0.06%         85
Marcellus




                                                                                           7
Water Disposal Options by Basin
                                     Water
Basin          Class II UIC                            Reuse/Recycle
                                     Treatment
Barnett        Local                 No                Yes
Fayetteville   Distant               Evaluating        Evaluating

Haynesville    Local                 No                No

Marcellus      Limited/Exploring     Yes               Evaluating



* Previously used land application under permit from Arkansas DEQ


                                                                       8
Produced Water- UIC Disposal
• Class II UIC wells are the
  primary means for management
  of produced water from Shale
  Gas
• In areas new to O&G
  development, commercial UIC
  wells may not yet be available
• Some areas (e.g. the Marcellus
  Shale play) are geologically
  challenged with limited
  available injection zones


                                     9
Produced Water Treatment Options

• Distillation/ Evaporation
   – To concentrated brine
   – To crystalline salts
• Reverse osmosis
• Treatment and recycling




                               10
Treatment Option Limitations
• All approaches have limitations, primarily:
   – Quality and quantity of water that can be treated
   – Waste volumes and management:
       › Concentrated brine from
         Distillation/Evaporation and RO
       › Salt crystal from Distillation/Evaporation
   – Economic viability
• Generally, as the TDS of the produced water increases,
  the volume of useable treated water decreases and
  waste increases
                                                           11
Produced Water Treatment and Reuse
• Many operators and service
  companies now considering
  viability of partially treating
  flowback water sufficient for
  reuse in the next fracture job
• Controlling factors may
  include:
   – TDS
   – Scale producing sulfates
   – Chemical requirements
      of next fracture job

                                       12
Benefits of Treatment and Reuse

• Reduces treatment costs
  compared to that required
  for more demanding uses
• Reduces volume requiring
  disposal and hence costs
• Reduces water sourcing
  and transportation
  demands


                                    13
Naturally Occurring Radioactive Materials (NORM)

• Shales naturally contain low
  levels of NORM – levels vary
  by play
• NORM generally remains in
  drill cuttings or scale – some
  of which may be suspended
  in produced water
• Radiation levels are low
  (these are not NRC levels)
• Implications for produced
  water management are likely
  to evolve as data are gathered


                                              14
Regulatory Considerations
• New York Draft Supplemental Generic
  Environmental Impact Statement
• Fracturing Responsibility and Awareness of
  Chemicals Act (FRAC Act)
• EPA Study of Hydraulic Fracturing and Drinking
  Water
Contact Information

       Dan Arthur

       ALL Consulting
  1718 S. Cheyenne Avenue
   Tulsa, Oklahoma 74119
    www.ALL-LLC.com



                            16

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Produced Water Issues with Shale Gas Production

  • 1. Produced Water Issues with Shale Gas Production J. Daniel Arthur, ALL Consulting Denver, Colorado
  • 2. Shale Gas Basins in the United States
  • 3. Water Management Lifecycle • Phases of water management for shale gas development: – Withdrawal – Transport – Storage – Drilling and fracturing – Treatment and reuse/recycle – Treatment and disposal • Each stage is inter-related with produced water management
  • 4. Water Sourcing Issues • Fresh water volumes • Location of withdrawal • Timing of withdrawal • Re-use /recycling of produced water can reduce these concerns 4
  • 5. Shale Gas Water Use - 4 Major Shale Plays • Barnett Shale • Fayetteville Shale 10,000 BBLS used for Drilling 1,500 BBLS used for Drilling 70,000 BBLS used for Fracturing 70,000 BBLS used for Fracturing ____________________________________________________________________ __________________________________________________________________ 80,000 Total BBLS Used 71,500 Total BBLS Used AssumedWells per Year: 600 AssumedWells per Year: 250 Projected Total Water Use per Year: Projected Water Use per Year: 48 Million BBLS 18 Million BBLS • Haynesville Shale • Marcellus Shale 25,000 BBLS used for Drilling 2,000 BBLS used for Drilling 65,000 BBLS used for Fracturing 90,000 BBLS used for Fracturing ____________________________________________________________________ __________________________________________________________________ 90,000 Total BBLS Used 92,000 Total BBLS Used AssumedWells per Year: 200 AssumedWells per Year: 600 Projected Total Water Use per Year: Projected Total Water Use per Year: 18 Million BBLS 55 Million BBLS Basin-wide activity based on one operator’s peak year projections.
  • 6. Well Drilling and Hydraulic Fracturing • Hydraulic fracturing uses more water than drilling, • Fracturing fluid is >99% water and sand. • Analysis shows extremely low probability of fracture Image: EnergyinDepth.org 2009 Source: Compiled from Data fluid migration from the collected at a Fayetteville Shale Fracture Stimulation by ALL Consulting 2008. shale up to fresh water zones.
  • 7. Total Water Use – 4 Major Shale Plays Total Water Industrial Public Power Shale Gas Use Shale Play and Irrigation Livestock Supply Generation Wells (Billion Mining Bbl/yr) Barnett 82.70% 4.50% 3.70% 6.30% 2.30% 0.40% 11.15 Fayetteville 2.30% 1.10% 33.30% 62.90% 0.30% 0.10% 31.9 Haynesville 45.90% 27.20% 13.50% 8.50% 4.00% 0.80% 2.15 11.97% 16.13% 71.70% 0.12% 0.01% 0.06% 85 Marcellus 7
  • 8. Water Disposal Options by Basin Water Basin Class II UIC Reuse/Recycle Treatment Barnett Local No Yes Fayetteville Distant Evaluating Evaluating Haynesville Local No No Marcellus Limited/Exploring Yes Evaluating * Previously used land application under permit from Arkansas DEQ 8
  • 9. Produced Water- UIC Disposal • Class II UIC wells are the primary means for management of produced water from Shale Gas • In areas new to O&G development, commercial UIC wells may not yet be available • Some areas (e.g. the Marcellus Shale play) are geologically challenged with limited available injection zones 9
  • 10. Produced Water Treatment Options • Distillation/ Evaporation – To concentrated brine – To crystalline salts • Reverse osmosis • Treatment and recycling 10
  • 11. Treatment Option Limitations • All approaches have limitations, primarily: – Quality and quantity of water that can be treated – Waste volumes and management: › Concentrated brine from Distillation/Evaporation and RO › Salt crystal from Distillation/Evaporation – Economic viability • Generally, as the TDS of the produced water increases, the volume of useable treated water decreases and waste increases 11
  • 12. Produced Water Treatment and Reuse • Many operators and service companies now considering viability of partially treating flowback water sufficient for reuse in the next fracture job • Controlling factors may include: – TDS – Scale producing sulfates – Chemical requirements of next fracture job 12
  • 13. Benefits of Treatment and Reuse • Reduces treatment costs compared to that required for more demanding uses • Reduces volume requiring disposal and hence costs • Reduces water sourcing and transportation demands 13
  • 14. Naturally Occurring Radioactive Materials (NORM) • Shales naturally contain low levels of NORM – levels vary by play • NORM generally remains in drill cuttings or scale – some of which may be suspended in produced water • Radiation levels are low (these are not NRC levels) • Implications for produced water management are likely to evolve as data are gathered 14
  • 15. Regulatory Considerations • New York Draft Supplemental Generic Environmental Impact Statement • Fracturing Responsibility and Awareness of Chemicals Act (FRAC Act) • EPA Study of Hydraulic Fracturing and Drinking Water
  • 16. Contact Information Dan Arthur ALL Consulting 1718 S. Cheyenne Avenue Tulsa, Oklahoma 74119 www.ALL-LLC.com 16