Water Use in the Alberta Energy Industry – Water Use in the Alberta Energy Industry –

AERI InitiativesAERI Initiatives

APEGGA Practice Development Event – April 17, 2007APEGGA Practice Development Event – April 17, 2007

Richard NelsonRichard NelsonAlberta Energy Research Institute (AERI)Alberta Energy Research Institute (AERI)

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Mission:Enhance the development of clean energy resources through research, technology and innovation.

Mandate: Position Alberta for the future in energy Add value to Alberta’s energy resources Encourage and invest in technology and innovation Coordinate R&D across agencies

Strategy: Partnerships & International collaboration

Alberta Energy Research Institute Alberta Energy Research Institute (AERI)(AERI)

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AERI’s Technology FocusAERI’s Technology Focus

Oil SandsOil SandsUPGRADING

• Lower intensity• Higher acceptance•Value added

CO2 and Emissions

Water Use

Clean Carbon/Co

al

Renewables

Recovery• Conventional• Unconventional•Bitumen – lower intensity

• Bioenergy• Geothermal• Hydrogen/fuel cells

• Alberta “niche”

• Integration with “opportunity” feedstock

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Recent WATER InitiativesRecent WATER Initiatives

Produced Water – Beneficial Re-Use : Fossil Water Corporation Completed July, 2007

SAGD Produced Water Treatment Test Facility : Gov’t and Industry Stakeholder led EOI EOI distributed by AERI Currently in negotiations with potential operator

A 2020 Fresh Water Neutral Upstream Petroleum Industry :

Alberta WaterSMART Completed March, 2008

Universities and Research Institutions : CONRAD OSTRF

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Produced Water – Beneficial Re-UseProduced Water – Beneficial Re-Use

Fossil Water – PTACuse of existing information sources implementation of alternative approaches to water use. focuses on high-TDS produced water

(in excess of 4,000 mg/l).

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Produced Water – Beneficial Re-UseProduced Water – Beneficial Re-Use

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Produced Water – Beneficial Re-UseProduced Water – Beneficial Re-Use

Potential re-use applications: well stimulation fluids; drinking water aquifer restoration; dust suppression; livestock watering; spray irrigation; and, Sub-surface irrigation.

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Produced Water – Beneficial Re-UseProduced Water – Beneficial Re-Use

Potential liability issues: Nuisance Negligence Strict Liability Trespass Riparian Rights Statutory Breach Contractual Breach

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Produced Water – Beneficial Re-UseProduced Water – Beneficial Re-Use

Conclusions: beneficial reuse of produced water

requires: Enhanced characterization of produced water

quality Confirmation of treatment technologies Streamlined approval process:

Codes of Practice Monitoring and Enforcement:

standardized approval and reporting practices Economic incentives:

creation of framework to promote re-use and substitution.

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SAGD Produced Water Treatment Test SAGD Produced Water Treatment Test FacilityFacility

Facility Attributes: Data acquisition, mobile, multiple water

streams Designed, built and Operated privately First Demonstration Project:

Data acquisition, data quality, data availability

Plug and Play Technology EvaluationSelf containedFlexibleLocation example: SAGD operating facility

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SAGD Produced Water Treatment Test SAGD Produced Water Treatment Test FacilityFacility

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SAGD Produced Water Treatment Test SAGD Produced Water Treatment Test FacilityFacility

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SAGD Produced Water Treatment Test SAGD Produced Water Treatment Test FacilityFacility

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A 2020 Fresh Water Neutral A 2020 Fresh Water Neutral Upstream Petroleum IndustryUpstream Petroleum Industry

The study, by Alberta WaterSMART evaluated: The potential for technology and policy to

move the UPI towards a fresh water neutral position by 2020.

Where:Fresh water defined as surface or subsurface

water with a conductivity 4,000 mg/L or less. The basis for neutrality assumes a water

balance between the south and the north.

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A 2020 Fresh Water Neutral A 2020 Fresh Water Neutral Upstream Petroleum IndustryUpstream Petroleum Industry

The study identified that: the fresh water demand of conventional

Oil production is dropping. the oilsands are the largest consumer of

fresh water today. the oilsands will consume an even larger

percentage of fresh water in 2020.

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A 2020 Fresh Water Neutral A 2020 Fresh Water Neutral Upstream Petroleum IndustryUpstream Petroleum Industry

The water demand forecast in this study assumes that this historical rate of decline will continue until 2020 when the consumption of fresh water will be close to zero.

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A 2020 Fresh Water Neutral A 2020 Fresh Water Neutral Upstream Petroleum IndustryUpstream Petroleum Industry

The most significant opportunity in the south of the province: Conventional produced water treatment with such technologies as:

Reverse osmosis, Electro-deionization (EDI), Membrane technologies and Evaporation-crystallization

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A 2020 Fresh Water Neutral A 2020 Fresh Water Neutral Upstream Petroleum IndustryUpstream Petroleum Industry

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Year

1,00

0 m

3/ye

ar

Conventional EOR Well Development Oil Sands In-Situ

Oil Sands Mining Integrated - Cooling Oil Sands Mining Integrated - Process & Other Oil Sands Mining Integrated - Tailings

Oil Sands Mining Extraction Only - Tailings Oil Sands Mining Extraction Only - Process & Other

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A 2020 Fresh Water Neutral A 2020 Fresh Water Neutral Upstream Petroleum IndustryUpstream Petroleum Industry

Oilsands Mining:

enhance water treatment to improve recycle rates reducing dependence on fresh water for cooling accelerate consolidation of the tailings (release water)

Water trapped in tailings accounts for a significant percent of makeup water demand.

Research efforts need to be focused on the water contained within the tailings stream and its recovery.

20201960 1970 1980 1990 2000 2010 2020 2030Cummulative MFT Volume

Cu

mm

ula

tive

MF

T V

olu

me

Mature Fine Tailings

Business as Usual

Stabilization

• 3 bbl of freshwater/1 bbl of bitumen• 0.25 m3 MFT /1 bbl of bitumen• MFT is 60 to 70% water by volume

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A 2020 Fresh Water Neutral A 2020 Fresh Water Neutral Upstream Petroleum IndustryUpstream Petroleum Industry

0

50000

100000

150000

200000

250000

300000

350000

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450000

1,00

0 m

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Oil Sands Mine Planned Reductions

Beneficial Reuse (Produced Water) (Generation 1)

EOR - CO2 Replacement of H2O

Beneficial Reuse (Produced Water) (Generation 2)

Well Development

Oil Sands Mine Extraction Only - Tailings

Oil Sands Mine Integrated - Cooling

Oil Sands In-Situ

2020 Forecast

Oil Sands Mine Integrated - Tailings

Oil Sands Mine Extraction Only - Process & Other

Oil Sands Mine Integrated - Process & Other

Figure 11. Forecast of 2020 UPI Fresh Water Demand and Offsetting Technologies Ranked by Magnitude of Potential Reductions

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CONRADCONRAD

Canadian Oilsands Network for Research and Development:

http://www.conrad.ab.ca/

CONRAD is a network. As of 2006, there were 38 members in

CONRAD Two primary research work working groups RFPs are formulated each year Current operational issues; fundamental

science and technology development.

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OSTRFOSTRF

Oil Sands Tailings Research Facility: http://www.ostrf.com/

Operated by the University of Alberta. Designed to demonstration scale The vision is next generation tailings disposal

options . Membership funding . Graduate Research

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Take Home MessagesTake Home Messages

Water is a High priority with AERI.Beneficial re-use of Produced water is achievableThe MODAC will demonstrate next generation treatment technologies.Significant opportunities for freshwater reduction and offset in the upstream Oil and Gas industryStabilization of Tailings Ponds is Critical

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Contact InformationContact Information

L. Richard NelsonProgram Director, Renewables and

Water Use in Energy

Alberta Energy Research Institute

Ministry of Advanced Education and Technology

Phone: (780) 427-0286richard.nelson@gov.ab.cahttp://www.aeri.ab.ca/