Produced Water Management: Embracing Scalable, Innovative Solutions in North America

By Abheek Banerjee, Exterran

Produced water management has evolved significantly over the past decade, especially in the U.S. unconventional market as water volumes continue to increase.

Compared to the Middle East, however, management of produced water in the U.S. unconventional space continues to be handled on a smaller scale (<100,000 BPD).

Individual operators tend to work in pockets and deal only with their own produced water even though this is an issue that neighboring fields and facilities also experience. With pipelines and infrastructure development on the rise, the industry needs to consider consolidated, large-volume treatment.

If scaled correctly and in conjunction with newer, innovative technologies, this approach opens doors to producers and mid-streamers to benefit from simplified facility designs, economies of scale and higher process efficiencies. The emergence of environmental, social and governance (ESG) and sustainability as key strategic components for stakeholders further supports the argument for consolidated and innovative produced water management.

CHALLENGES

The volatility and unpredictability of oil prices remains one of the biggest hurdles steering operators away from medium- to long-term contracts for water management. Short-term or “frack-on-the-fly” models will not work for large-volume facilities.

Further, drilling programs are often tied to oil prices and steady produced water flow rates cannot be guaranteed, which impacts projected plant utilization and resulting economics.

Another challenge that prevents large-volume treatment is the sharing of water between operators — this can be difficult if partnering operators are hesitant to accept another operator’s water quality specifications. Lastly, this industry can also be reluctant to change and embrace newer technologies, which calls for a shift in mindset and approach to move forward and understand the potential benefits.

RECENT ADVANCEMENTS

A notable change over the past five years has been the considerable development of produced water infrastructure, specifically pipelines. The market is moving towards consolidation, even though progress has been slow.

As produced water volumes continue to rise, pipeline infrastructure will provide more opportunities to collect volumes from multiple producers for treatment at centralized facilities with larger capacities. This largescale midstream model provides more flexibility, reliability and cost efficiencies, making this approach a more economical and sustainable option, especially in the face of rising freshwater prices.

New/innovative water treatment technologies now can operate within a larger functional window and handle upset scenarios with varying feed qualities without compromising outlet quality. These new technologies also simplify overall plant design by removing multiple pieces of equipment and increasing process efficiencies. In addition, automation and remote monitoring technologies reduce overall operating expenditures, particularly due to labor and chemical savings.

The Produced Water Society recently released a suggested outlet target quality guideline, a step in the right direction to address the challenges in standardization of outlet water requirements when sharing treated water amongst operators.

ECONOMICS AND SCALABILITY

Exterran recently completed a study for a produced water reinjection project that compared a traditional water treatment plant design to an innovative large-scale design scheme for a 750,000 BPD facility. The traditional design approach includes multiple trains of degasser vessels, skimmers, induced gas flotation (IGF) vessels and filter polishing to reduce oil in water and suspended solids.

Exterran’s innovative large-scale solution uses one large flotation tank to handle the gas, eliminating the need for the degasser vessels. The flotation tank also provides a longer retention time and higher oil/water separation efficiency in one step, eliminating the need for oil skimmer vessels, IGFs and multiple trains.

From a capital expenditure (CAPEX) perspective, this innovative design provides a reduction in equipment by 18 vessels, 39 pumps, 850+ valves and instrumentation, a 60% reduction in balance of plant piping, and a 40% reduction in footprint size. From an operating expenditure (OPEX) perspective, chemical usage is reduced by approximately 40% due to treatment occurring in one tank with a higher retention time (as opposed to multiple vessels with lower retention times) and innovative microbubble flotation technology. Removing 39 pumps results in a 65% reduction in overall plant power consumption. With a 50% reduction in major equipment, this also equates to reduced maintenance and manpower requirements.

ESG IMPACTS

As modern companies evolve in growth of intangible assets, growth of intellectual capital, use of technology, and their awareness and understanding of climate change, it begins to make sense why ESG plays an important role in our industry. Traditional financial models in our industry focus exclusively on the monetary factors. Recently we have seen the rise of ESG built into strategic investing—considering not only the financial gain for a company but also the direct and indirect effects the business has on sustainability, climate change and the wellbeing of others.

In Exterran’s large-scale produced water reinjection study, potential reportable ESG metrics include the 65% reduction in power consumption, along with a 60% reduction in steel and a 40% reduction in concrete required for facility construction. These metrics result in a significant decrease in carbon footprint. Fewer valves, less process equipment and piping also means reduced potential for leaks and fugitive emissions. Furthermore, this design allows operators to meet water quality targets without freshwater blending. With respect to ESG, these reductions translate to upwards of 35-40% reduction in CO2 emissions in plant design and operations.

NEXT STEPS: WORKING TOGETHER

As an industry, if we can take the initiative to see what large-scale produced water management looks like from a logistics, infrastructure and partnerships perspective, there are some significant opportunities. By being open to innovation and looking at a consolidated treatment approach, industry will realize efficiencies and improved economics, and will understand what this means from an ESG perspective. By incorporating ESG into business models today, companies can get ahead of the curve for tomorrow’s regulatory environment and reporting requirements.

The future of the produced water management industry depends on all of us working together, adhering to ESG initiatives, and embracing innovative, large-scale solutions to help treat water in a sustainable, costeffective manner.

Abheek Banerjee has over nine years of experience in project management, business development, and engineering within various sectors of water treatment. As Product Line Manager for Exterran Water Solutions, Abheek is responsible for the development of the product portfolio strategic growth plan and go-to-market strategies for new products.

Abheek’s experience spans a variety of projects in geographically different energy sectors including the U.S. shale play market, Canadian oil sands and Middle Eastern regions. His diverse knowledge and understanding of challenges faced within the produced water industry has led to new product innovations and the positioning of Exterran as a global leader in produced water treatment and recycling for the energy industry. Abheek holds a Bachelor’s degree in Chemical Engineering from McGill University in Montreal, Canada.