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1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1
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Page 1: 1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1.

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Water Use in Oil and Natural Gas Production

ConocoPhillips Canada

Water in a World of Seven Billion ConferenceMay 10, 2012

1

Page 2: 1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1.

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Outline

• The global energy and water challenge• Oil and natural gas production and water use• Water sources in oil and natural gas development • Industry response to the energy-water nexus• ConocoPhillips initiatives• Future trends

Page 3: 1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1.

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The Global Energy and Water Challenge

Water Availability World Energy Demand

Ref 2: 2011 EIA

World Energy Consumption by Fuel Type

Qua

drill

ion

BT

U

Qua

drill

ion

BT

U

Ref 1: World Meteorological Association

Page 4: 1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1.

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Oil and Natural Gas Production and Water Use

Type of Oil and Natural Gas Production

2010 Average Water Use Intensity(bbls of

water/bbls oil equiv)

Oil sands – Mining3

3.1

Oil Sands – In Situ3

0.4

Conventional Oil3

0.6

Shale Gas4 (U.S. data)

0.08 – 0.24

Energy use and production of energy are linked to water use

Operating and In Construction Western Canadian Oil Production

Ref 3: 2010 CAPP RCERef 4: 2010 Harvard Kennedy School Ref 5: 2011 CAPP Crude Oil Forecast

Page 5: 1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1.

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Water Sources for Oil and Natural Gas Production

Page 6: 1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1.

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Water SourcesOil and Gas Development

• Today’s fresh water sources• lakes, rivers and dugouts

• Water use per well • 2,000 to 70,000 m3

• One-time water use• Produces for 40 to 50 yrs

• Future sources (lower quality water)• Saline groundwater • Flow back water • Produced water• Municipal wastewater

• Water quality

Application of Technology is key to decreasing use of fresh water sources

Page 7: 1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1.

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Water SourcesIn-Situ Bitumen Production

• Primary sources • Non-saline (fresh) and

saline (non-fresh) groundwater

• 85% of water recycled• Future trends

• Increased production with saline sources

• technology to reduce steam-to-oil ratio

Ref 3: 2010 CAPP RCE

Fresh and Non-Fresh Water Used by In-Situ Projects

(million m3 and barrels)

Page 8: 1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1.

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What is the oil and natural gas industry doing to address the energy-water nexus?

Page 9: 1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1.

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Energy-Water NexusIndustry Initiatives

• CAPP 2011 Water Conservation Efficiency Production Plan(6)

• Projected fresh water productivity by 2015 (2002-2004 baseline):• Oil Sands mining (total fresh water) - 30%• Oil Sands in-situ – 47%• Conventional oil (including EOR) – 15%

• Projections depend on • Availability and treatability of saline water• Net environmental benefit from using saline sources

• Canada’s Oil Sands Innovation Alliance(7) – announced in 2012• CAPP Guiding Principles and Operating Practices for Hydraulic

Fracturing(8)

Page 10: 1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1.

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CAPP Guiding Principles for Hydraulic Fracturing

1

2

3

4

5

We will safeguard the quality and quantity of regional surface and groundwater resources, through sound wellbore construction practices, sourcing fresh water alternatives where appropriate, and recycling water for reuse as much as practical.

We will measure and disclose our water use with the goal of continuing to reduce our effect on the environment.

We will support the development of fracturing fluid additives with the least environmental risks.

We will support the disclosure of fracturing fluid additives

We will continue to advance, collaborate on and communicate technologies and best practices that reduce the potential environmental risks of hydraulic fracturing.

Page 11: 1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1.

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CAPP Operating Practices for Hydraulic Fracturing

Page 12: 1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1.

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Energy-Water Nexus ConocoPhillips Global Water Initiatives

• Minimize Environmental Impacts• Our commitment

• Develop plans to address local freshwater scarcity understanding local needs• What we’ve done

• Fresh water strategy, best practices and developing technologies• Fresh water supply risk assessment (WBCSD Global Water Tool)• Global Water Sustainability Center focused on water treatment

• What we plan to do• Review and implement (by priority) site strategies • Where feasible use treated municipal wastewater as alternative supply• New technologies - reduce fresh water to drill and complete wells

• ConocoPhillips Onshore Well Management Principles• Global standards for protecting water resources

• ConocoPhillips Water Sustainability Position• Baseline corporate expectation for managing water resources

Page 13: 1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1.

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Energy-Water NexusConocoPhillips Canada Business Unit

• Western Canada Business Unit water and energy management initiatives• Plans to improve water use productivity and decrease fresh water use• Water source and watershed studies• Assess centralized management and treatment of water

• Oil Sands Assets water and energy management initiatives• Saline water source assessments• Technology and process optimization

• Reduced steam-oil-ratio (SOR) from 2.92 to 2.36 (from 2008 to 2010)• Retrofitted Surmont 1 - direct steam injection technology (reduce makeup

water) • Evaluating several technologies to reduce footprint

• Desalination technology• Enhanced steam-assisted gravity drainage• Centrifuge technology• Ceramic membrane technology

Page 14: 1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1.

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Future Trends

• Accurate forecasts for water availability and demand• Sourcing from saline, wastewater and low quality water • Environmental net affects assessments to evaluate water

source alternatives • Balance energy, economic, environmental and social outcomes

• Technology improvements in water treatment and re-use• Collaboration on regional water management

Collectively advance initiatives and technology to address the energy-water nexus

Page 15: 1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1.

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Thank You

http://www.cpcsustainability.com/

www.cpcsustainability.com

Page 16: 1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1.

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Background Slides

Page 17: 1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1.

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Power Generation and Water Intensity

0

200

400

600

800

1000

1200

1400

1600

CombinedCycle Conv.

Gas

CombinedCycle Shale

Gas

Coal Thermal Nuclear Solar trough Geothermal

Steam Cycle*

Other Use**

Fuel Production

Source: U.S. Department of Energy, “Energy Demands on Water Resources”, December 2006; Chesapeake for shale gas water use* Assumes closed loop cooling tower**Other use includes water for other process uses such as emissions treatment, facilities.

Gal

lons

/ M

Wh

Gas-fired combined cycle power plants use much less water than thermal power plants with only a small contribution from gas production

• nNatural Gas is a low carbon and low

water energy source

Ref 11: U.S Department of Energy Ref 11A: 2006 Chesapeake Energy

Page 18: 1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1.

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List of References

1. World Meteorological Associationhttp://www.grida.no/graphicslib/detail/freshwater-stress-1995-and-2025_6250#

2. 2011 U.S Energy Information Association (DOE/EIA 0484(2011) http://www.eia.gov/forecasts/ieo/index.cfm

3. CAPP 2010 RCE Report

http://www.capp.ca/library/publications/environmentStewardship/pages/pubInfo.aspx?DocId=187709

4. 2010 Harvard Kennedy School Belfer Center - Water Consumption of Energy Resource Extraction, Processing and Conversion (discussion paper#2010-15)

http://belfercenter.ksg.harvard.edu/files/ETIP-DP-2010-15-final-4.pdf

5. CAPP 2011 Crude Oil Forecast, Markets & Pipelineshttp://www.capp.ca/forecast/Pages/default.aspx

6. CAPP 2010 Water CEP Planhttp://www.capp.ca/getdoc.aspx?DocId=187709&DT=PDF

Page 19: 1 Water Use in Oil and Natural Gas Production ConocoPhillips Canada Water in a World of Seven Billion Conference May 10, 2012 1.

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List of References

7. COSIA Website Linkhttp://www.cosia.ca/

8. CAPP Hydraulic Fracturing Guiding Principles and Operating Practices http://www.capp.ca/canadaIndustry/naturalGas/ShaleGas/Pages/default.aspx

9. ConocoPhillips Global Sustainable Development Web Page

http://www.conocophillips.com/EN/susdev/commitments/Pages/MinimizeEnvironmentalImpact.aspx 10. ConocoPhillips Canada Sustainable Development Portal

http://www.cpcsustainability.com/ 11. U.S. Department of Energy, “Energy Demands on Water Resources”

http://www.sandia.gov/energy-water/docs/121-RptToCongress-EWwEIAcomments-FINAL.pdf

11A. 2006 Chesapeake Energy (data) for shale gas water usehttp://www.chk.com/Environment/Water/Pages/information.aspx


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