Archive for 2017
Water Standard Management is pleased to announce that it has signed a Memorandum of Understanding with Sorbwater Technology as the exclusive supplier of their products and chemicals in the United States.
The two companies will collaborate in offering eco-friendly, cost-effective and compact oil water separation solutions for the onshore and offshore oil and gas industry. With the addition of Sorbwater technology, Water Standard continues to increase its product offering and expand its technology portfolio, thereby enhancing the company’s ability to offer economical solutions for complex water issues. Water Standard-Monarch’s design, build and integrate capabilities combined with Sorbwatr’s patented separation equipment and green chemistry, result in game-changing produced water treatment solutions that are robust, effective, and environmentally friendly.
Water Standard’s Chief Technology Officer, Lisa Henthorne, commented, “We are extremely pleased to be working with Sorbwater Technology. Developed for the stringent regulatory environment of the Norwegian offshore market, this green technology can be cost-effectively deployed to enable operators to reduce their environmental footprint and expand the recycle uses for produced and flowback water. This is something Water Standard is passionate about, and we believe it can change the way our industry values water and how the public views our industry.”
Together, the companies will build on their commitment to employ sustainable, long term water treatment solutions by designing and offering produced and flowback water treatment facilities. Sorbwater’s unique technology, a green and safe flocculent, is extracted from sea weed and enables surface discharge when used in conjunction with applicable separation technology. This reduces disposal into salt water disposal wells and eases the environmental impact of frac’ing operations.
Call +1.713.400.4777 or email us at email@example.com for more information.
The Texas water rush
Despite the energy price turmoil, frac’ing is here to stay – and so are the opportunities for water treatment, says Amanda Brock.
Much has been written about the ‘water-energy nexus’ since this ubiquitous phrase was first coined. And even more has been written recently regarding water use in hydraulic fracturing in oil and gas production. But there has never been such a dramatic example of the interdependence of water and energy than the current frac’ing boom in a dry expanse of West Texas and New Mexico known as the Permian Basin. This area is one of the most prolific oil- and gas- producing basins in the world, changing the outlook for global energy production. As the energy sector recovers and production is once again on the rise, the focus has shifted to water as a potentially limiting factor which could act as a bottleneck to production. For companies associated with the water industry, that means opportunity.
Water is a primary element in frac’ing, which is a method for producing oil and gas where highly pressurized water and sand are injected into a well, creating tiny fractures that allow more oil and gas to be released from the shale rock. The sand props open the cracks and water delivers the sand in the formation. As frac’ing in the Permian has exploded, water has become the headline event. To put this in perspective, the number of rigs drilling in the Permian has increased from 146 to 361 since June 2016. Permian oil production is projected to be a record 2.49 million barrels in June 2017. To achieve that production level, it takes on average an estimated 300,000 barrels or more of water to frac’ a typical single well. Since 2013, water use per well is in the Permian is up 434%, and we now see the rise of mega-fracs using over 42 million barrels of water. All of this water demand is occurring in a region that receives annual rainfall of about 14 inches a year.
Issues related to water intensity have dramatically increased three interconnected factors: demand for source water to frac’; produced water volumes; and the need to dispose of produced water. On the demand side, Qingming Yang, COO of Approach Resources, estimates that at least 20 billion barrels of water will be needed to develop the remaining Permian resources. This is an enormous quantity of water that will have to come primarily from groundwater resources that are increasingly stressed. On the produced water side, Laura Capper, president of CAP Resources, estimates that roughly 4 billion barrels of water are produced from oil & gas production and extraction in the Permian every year. Again, that number is increasing in the Permian, with an average of 6.5 barrels of water produced for each barrel of oil. This vast volume of water has to go somewhere, and today, the majority of produced water volumes are disposed of into Glass II salt water disposal wells.
It’s hard to grasp the sheer enormity of these volumes and the challenges they post, particularly when you realize the Permian is only one of many oil- and gas-producing basins in the US. Research from Barclays estimates that 30% of a well’s capex is water-related, and 40-50% of opex comes from produced water management and disposal. Water costs for frac’ing in the Permian, excluding transportation costs, generally range from $1.00 to $3.00 per barrel. Operators are now facing enormous challenges related to balancing the availability of fresh water needed for frac’ing with the cost of effectively disposing of the resulting produced water. As a consequence, the opportunity to treat and recycle produced water is now gaining momentum, and Barclays estimates that reusing produced water in frac’ing could lower water costs by 45%. Not only can an operator reduce costs by recycling, but also cut water acquisition volumes, and improve sustainability.
Frac’ing is not going away, and operators have yet to solve the looming water dilemma. Therein lies the opportunity for water treatment providers. Recycling produced water for frac’ing can eliminate bottlenecks and provide operators with the secure supply of water they need to produce oil and gas, while lowering costs and minimizing disposal volumes. It’s a win for everyone, including the environment. In the Permian and beyond, the prize is too big not to get recycling right!
All Trumped up
The US water industry must take the new president at face value – and the rhetoric is encouraging, says Amanda Brock.
In case anyone missed it, the United States has a new president, Donald J. Trump, who was sworn into office on 20 January. In these contentious times, it’s best to focus on the facts as we try to decipher what a Trump presidency could mean for the US water sector. There should be no surprises when it comes to Trump’s intentions; in his first few weeks of office, he is doing exactly what he promised to do while campaigning. He vehemently dislikes any regulation he thinks impedes business, enthusiastically promotes US energy independence and private sector participation, is extremely vocal about rescinding president Obama’s climate change initiatives, and is emphatic that water infrastructure and access to clean water must be a priority.
During his campaign, Trump pledged to develop long-term infrastructure plans to upgrade ageing water systems, and triple funding for state revolving loan fund programmes. This would mean providing SRF programmes with $2.58 billion for drinking water and $4.17 billion for clean water. He assured voters that what happened in Flint, Michigan, would not happen on his watch, and told California voters he knew how to fix their water problems. In ScienceDebate 2016, he argued that clean water may be the “most important issue we face as a nation for the next generation” and that “we must make investment in our fresh water infrastructure”, “explore all options to make desalination more affordable”, and work to “to build the distribution infrastructure” needed.
The obvious question is: how will the Trump administration fund these initiatives? In a document outlining what his administration will do in the his first 100 days in office, Trump states that he will “cancel billions in payments to the UN climate change programs”. He has also talked about convincing the private sector to invest over $1 trillion in public infrastructure projects, incentivized by tax credits. In a measured statement, the executive director of government affairs for the American Water Works association (AWWA) said: “Certainly what we’re hearing out of the Trump Administration is encouraging to the water utility sector”. Others have not been as diplomatic, raising old fears that private sector participation is guaranteed to hamper access to safe sources of drinking water, whilst rewarding corporate greed. The fundamental issue is that we need change in the industry. AWWA has identified the need to spend $1 trillion just rebuilding US drinking water systems over the next 25 years in order to maintain existing levels of service, which at times are questionable. The numbers keep growing, the problems get worse, and we keep talking about it. At the very end of the Obama administration, we were heartened by a late focus on water with the Moonshot for Water initiative. However, it unfortunately came so late that the impact was limited.
So what has president Trump done so far? On his first day in office, all mention of “climate change” disappeared from the official White House website, replaced by the America First Energy Plan, which proposes to roll back the Obama Climate Action Plan and the Waters of the US rule which expanded the rivers, lakes and wetlands protected by the EPA. Trump’s Energy Plan promises “responsible stewardship of the environment” and to return the EPA to its “essential mission of protecting our air and water”. The president has also nominated Scott Pruitt, an avowed foe of Obama’s environmental policies, to head up the EPA. President Trump is determined to implement the platforms he campaigned on. So we can expect more federal funding and private sector participation in the water sector, and the encouragement of public-private partnerships, while needed infrastructure projects will go ahead. We will see change, but it is unlikely we will see the repeal of key environmental statutes affecting water and waste. At the end of the day, it is about balance. Trump is bold and opinionated. But he cares about what the media writs, and he does not want a backlash from his voter base. So while many may not like Trump’s politics, style or approach, perhaps as an industry we should be watchful, cautious and encouraging.
Desal getting bigger in Texas
Desalination is set for a sea change in the Lone Star State, argues Amanda Brock.
There are great opportunities in Texas for companies that are able to utilise their desal technologies in multiple applications. But this requires the ability to understand and navigate the complexities of the Texas market-place, and take into consideration the huge footprint of the state itself. Even with the slowdown in the O&G sector, in 2015 Texas remained the top destination for one-way moving truck rentals. Houston, San Antonio and Austin ranked as three of the top five destinations nationally, and as many as 345 people still move to Texas every day.
Understanding the connection between desal and Texas requires an understanding of the upstream and downstream O&G sector. Texas has 29 operating refineries processing approximately 5.8 million barrels of crude oil per day. Houston, soon to be the third-largest city in the US, accounts for over 40% of the nation’s base petrochemical capacity on its own. Plants in Freeport, Beaumont, Corpus Christi and other Texas cities and towns make the state the largest petrochemical market in the US.
Watching the slowdown in the upstream O&G market – including the unconventionals market – is concerning, but there continues to be a significant need for desal technologies relating to the treatment of water used and reused for frac’ing and produced water.
The Texas Water Development Board reports more than 100 desalination plants installed in Texas. Most are small or intermittent-type facilities, but there are three large facilities in-state: the Kay Bailey Hutchison plant in El Paso, which can produce up to 104,000m3/d of fresh water, the Southmost Regional Water Authority Desalination Plant (28,400m3/d) for south Texas, and a new brackish water desal plant currently under construction in San Antonio. Phase 1 of the San Antonio Water System (SAWS) desalination plant is set to be completed this year, and will produce 10 million gallons (37,850m3) of fresh water daily.
All desalination facilities in Texas currently use brackish groundwater. There were no seawater plants in operation in Texas as of October 2016, although several are planned, and at least one is under construction at a petrochemical facility near Corpus Christi. But that is about to change.
Cities and towns throughout Texas such as Galveston, Corpus Christi, Freeport, Baytown, Conroe, Katy and Odessa are all looking at desal options as part of their overall water portfolios. Katy, a suburb of Houston, recently contracted a 2MGD (7,570m3/d) brackish water desal plant to help with groundwater subsidence by taking water from a deep brackish water aquifer. Other cities and towns that have an industrial base, such as Corpus Christi and Freeport, are looking at ways to reduce the overall cost to install desal facilities by having industrial partners participate in the projects. Desal technologies are also being used for direct and indirect potable water reuse projects.
The challenge for companies is in appreciating the complex market. For the municipal sector, understanding 1) the regulatory and permitting requirements; 2) who to deal with at all levels – local, state and federal – and 3) the contracting mechanisms used to execute projects add to the complexity of developing desal projects in Texas. The current go-to method for contracting municipal projects in Texas is DBB, although other methods such as CM@R, DB and PPPs are being considered.
The interest level continues to be high among our elected officials, including Texas Governor Greg Abbott. He and other politicians recently travelled to Israel to visit desal facilities and witness the positive effects of desal in Israel. There are many reasons why the Texas market is attractive to desal-related companies, and many companies have been successful here. The common denominators in these successes were patience, a diverse technical portfolio, the capability to operate in the industrial and municipal markets, and the ability to build relationships.
Water Standard, through its produced water subsidiary, Monarch Separators is pleased to successfully complete an offshore produced water filtration system for a major international oil company we’ve had a history with since the 1970’s. This filtration package is designed to treat 75,000 BWPD of oily water on an offshore platform in the gulf of Mexico and marks the second unit we have installed on this platform. The first unit, an Ultrapure Water Generation Package, provides high purity water for the platform’s boiler feedwater system and this excursion filtration package will treat the opposite process stream of produced water. The completion of these two units demonstrates our wide range of water treatment capabilities we offer our customers.