22 nd September 2011 NEL Produced Water & Environmental Club Meeting. Mike Turner Production Engineering Manager (Water and Production Chemistry)

Transcription

1 BG Group Water Management Challenges 22 nd September 2011 NEL Produced Water & Environmental Club Meeting Mike Turner Production Engineering Manager (Water and Production Chemistry)

2 Generic Water cycle Water Production Water Consumption Evaporation Direct discharge to environment Seawater/ Aquifer Water Water Treatment Injection Waste product Produced water /flowback Reuse of treated water Frac water + chemicals Freshwater Groundwater Municipal water Reuse/ recycling Water contamination concern Aquifer Water contamination concern Reservoir 2

3 Water management shale Hydraulic fracturing (fraccing) requires significant quantities of water Water use options may include: Surface water Municipal water Groundwater Reuse produced water or third party waste water Water disposal options may include: Salt Water Disposal (SWD) wells Treatment facilities Reuse in fraccing operations Significant infrastructure required to transport and store water Risk and perceived risk of spill/water contamination 3

4 Water Management CSG Production of CSG is accompanied by associated water Associated water is often rich in salts and other constituents Water disposal options include: direct use by mining industry reinjection disposal to river, sea or estuary (e.g. Firth of Forth) irrigation and livestock watering evaporation potable water supply Most disposal options require treatment t t by desalination (e.g. Reverse Osmosis) Treatment and movement of water is energy intensive Water management has technical and economic challenges 4

5 General Industry Challenges - Unconventionals Shale Gas. Focus on Water Resources Access to Water External Stakeholder Engagement. Competition for water. Impact of industry operations on groundwater quality (e.g. Fracking, well integrity) Regulators Community NGOs Cost of Water Treatment of flow-back water (desalination) HSSE (e.g trucking of source and waste water) Coal Seam Gas. Focus on Treatment of Produced Water. External Stakeholder Engagement. environmental Impact of treated water and Impact of industry operations on groundwater quality (e.g. Fracking, well integrity) Regulators Community NGOs Treatment of produced water (desalination) High water rates early in field life water is potential choke to production. 5

6 General Industry Water Management Challenges - Conventionals Conventional Oil and Gas External Stakeholder Engagement Regulators NGOs Produced Water Treatment (Oil in Water) and ability to treat water to meet discharge regulations. Impact of Produced Water on Production (revenue) and Asset Integrity (e.g. Liquid loaded gas wells, scale, corrosion) Third party disposal of produced water. Conventional Oil and Gas with Water Injection As above, but higher water production rates increase focus on water treatment. Optimising recovery - water injection well placement and recovery factors 6

7 Risks and Challenges Produced Water Management Hierarchy Treatment Production Asset Integrity HSSE Challenges Operational - Drawdown x Managing drawdown to minimise water and sand production reduces hydrocarbon production Reduce Mechanical Shut-off x x Impact on production + Technology Challenges Chemical Water Shut-off x Impact on production + Technology Challenges Down-hole Separation x Technology Challenges Re-Use Disposal Produced Water Reinjection Re-use (desalination plus re-use of flow-back water) Evaporation/Storage Ponds/ x x Water Quality (solids). Secondary impact on production and asset integrity (e.g. souring) x x (+ ve) New(ish) Technology. Clear link and choke for production in unconventionals. Opportunities for beneficial use. x Long term impact and toxicity of accumulation of solid waste in ponds. Challenges with regulators and NGOs Trucking of water to 3 rd x x Potential ti as production choke if disposal route restricted. t Significant ifi Parties HSSE risks trucking contaminated waste water External Stakeholder Challenges x x Disposal Well x Water Quality (solids) and ability of process to meet specifications. Potential as production choke if disposal route restricted Overboard Discharge x x Water Quality (oil in water) and ability of process to meet specifications (which may change). Production can be threatened if discharge specifications are not met. 7

8 Water Management & Cross-Functional Challenges Policy & Corporate Affairs Reputation HSSE Water - Produced d Resource Water Production Chemistry Reservoir Engineering Revenue Operations Well Engineering Production Technology Engineering Success in Water Management Requires a genuinely cross-functional Effort need to think HOLISTICALLY! 8