Compelling Incentives to Recycle Produced Water

Compelling Incentives to Recycle Produced Water

Reduce Produced Water Disposal Costs

Problem:

  • Produced water handling & disposal is the largest single cost of operating an oil & gas well
  • Handling & disposing 50,000 BPD at $2-4/bbl costs $36.5M – $73.0M per year

Solution

  • H2O treats produced water close to the source to a surface discharge standard
  • High cost of haulage & disposal is reduced and the cost of expensive gathering pipelines is minimized

Eliminate the Water Availability Problem

Problem:

  • To remain competitive, operators must have access to a high-quality water
  • Oilfield leases are often in areas of extreme water stress

Solution

  • H2O recycles produced water to a high-quality Frac-Ready slickwater specification
  • H2O Ultra-Pure desalinates the water for surface discharge
  • The H2O process provides an abundant source of water for Long-Term Drilling Demand, eliminating the water availability risk for operators

Minimize Environmental Liabilities

  • Evaporation & impoundment ponds & SWDs are outmoded, inefficient, and create unwanted environmental liabilities (spills, leaks, evaporation pond bird mortality, & SWD seismic activity)
  • Pipelines eliminate some of the trucking but introduce new environmental risks and produced water liabilities remain with operators
  • Surface discharge diverts produced water away from the disposal process, immediately reducing evaporation & impoundment pond, trucking & seismic environmental costs & risks

Create Sell-able Commodities & New Income Streams

Problem:

  • Produced water is a high cost item for operators

Solution

  • Sales of Frac-Ready slickwater, desalinated water and heavy brine (internally and to 3rd party operators) can generate new income streams
  • Offsetting income enhances the incentives to treat produced water and creates a platform for operators to develop a next generation water midstream business

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