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.
As mentioned in earlier news, Amanda Brock, CEO was honored as an Innovator at Houston Business Journal’s Women in Energy Leadership Event. See press release for full story.
Dec. 7, 2016 Water Standard, a global leader in water treatment solutions for the energy industry, is pleased to announce Amanda Brock, CEO, has been recognized as an “Innovator” in the Houston Business Journal’s Women in Energy Leadership Awards.
At an exclusive dinner held in Houston, Ms. Brock was recognized for her many professional affiliations and environmental efforts over her 25+ years in the industry. Her foresight and passion for water conservation within oil and gas drove her to help found Water Standard in 2008 and the company is now recognized as a pioneer in water treatment for the energy industry. Ms. Brock believes strongly that, “We have to give back and make the environment a better place for the people we’re leaving it to.”
Viewed as an industry strategist, Ms. Brock is regularly requested to speak and participate at global events, keeping the topic of water scarcity and reuse at the forefront. She sits on several Advisory Boards and counsels Private Equity Investors, identifying global investment opportunities in the water and energy sectors. She is also a regular columnist writing on the Water Energy Nexus, for Global Water Intelligence published in Oxford, the United Kingdom.
Ms. Brock contributes her success to the team that supports and drives her. She is proud that Water Standard is successfully navigating the industry downturn as the company continues to deliver effective water treatment solutions for today’s challenges. As part of Water Standard’s strategy, Ms. Brock proactively initiated the recent acquisition of Houston-based Monarch Separators to better respond to the industry’s need to recycle and reuse produced water.
Ms. Brock serves as an inspiration and role model to those around her. She admits, “There is no Superwoman. Things can get messy but at the end of the day, it’s going to be ok.”
Amanda Brock, founder and CEO of Water Standard is to be honored at Houston Business Journal’s second annual Women in Energy Leadership Awards event to celebrate the top women of Houston’s energy companies on Thursday, November 10, 2016 at the Houstonian Hotel. The honorees were judged on their career achievement in energy, contribution to company success, community involvement and leadership. They are considered Women of Influence, Women to Watch and Innovators in the industry. The event was designed to honor the top women in executive positions at energy companies of all sizes. Learn more about the Awards Dinner HERE.
As reported in the Water Desalination Report – 11 July 2016
Houston-based Water Standard has successfully executed a contract for an Ultrapure Water Package for a major international oil company. The package will be installed on a 175,000 barrel-per-day floating production system located in deepwater, Gulf of Mexico. The package – which consists of an RO system, Water Standard’s proprietary MDA (membrane deaeration) system and a continuous electrodeionization (CEDI) unit – will provide high purity water for the platform’s boiler feedwater system.
The compact, skid mounted package was manufactured and tested in Water Standard’s Houston fabrication facility, and according to Mark Legg, the company’s Senior Commercial Vice President, is the first of its kind on an offshore platform.
“Not only was the entire system designed to meet Class 1, Division, 2 specifications for operation in hazardous environment, it must produce water with a specific conductivity of less than 0.10 µS/cm and the MDA’s membrane contactors must continuously remove dissolved oxygen to less than 10 ppb without chemical oxygen scavengers,” said Legg.
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Speak to our Subject Matter Experts, Stephen Van Pelt or Holly Johnson Churman to learn more about these technologies. 713.400.4777
To learn more about the Water Desalination Report (WDR), click HERE
Holly Churman, Technology Manager at Water Standard, will present “Evaluating economic tradeoffs in produced water treatment for CEOR flood development” on Wednesday, Jan 27 at 8:10 am at PWS in Houston. As co-author of this presentation, Holly will expand on the abstract below:
One of the most challenging aspects of Chemical Enhanced Oil Recovery (CEOR) is the evaluation of economic trade-offs during the design phase of a project. Often, the most impactful and difficult of these decisions involves modification of the composition of the injection water, as it is uncommon for operators to have suitable water available for CEOR floods without prior treatment. This is particularly important when the injection water source under evaluation is produced water. The extent to which water must be treated to achieve CEOR program objectives must then be determined. A screening workflow has been developed to quantify water treatment strategies on a Net Present Value (NPV) basis to aid water treatment decision making.
One example of a water treatment decision is whether to use hard, high-salinity produced water in a surfactant-polymer (SP) flood, or to soften the water and add alkali in an alkali-surfactant polymer (ASP) flood. Is the cost of softening the water worth the advantages of adding the alkali? Or is there a cost benefit to desalinating and softening the produced water for polymer flooding? We attempt to answer these questions by developing economic case studies for a set of reservoir properties and water compositions.
A unified screening tool merging mechanistic reservoir simulation and modeling of produced water treatment strategies allows users to compare various options on the basis of NPV. Reservoir simulations were completed using parameters derived from laboratory and field-scale measurements to properly capture the impacts of selected produced water softening and desalination methods on the performance of the CEOR floods. Test cases evaluating the use of produced water to drive an ASP pilot in a heterogeneous carbonate were conducted, followed by investigation into other reservoir conditions. This new tool and workflow has proven advantageous to enable users to navigate the difficult decision matrix of produced water driven CEOR flood development.
Robert Fortenberry, Reservoir Engineer, Ultimate EOR Services
Holly Churman, Technology Manager, Water Standard
Lisa Henthorne, SVP and CTO, Water Standard
Modjeh Delshad, President, Ultimate EOR Services
Click HERE for more information on PWS.