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Title page

Contents

Acknowledgments 10

About the Authors 12

Report Context 15

Executive Summary 17

Glossary 24

Abbreviations 27

1. Facts and Trends in Freshwater Abstraction and Produced Water Generation and Use 30

OVERVIEW 30

INTRODUCING THE ISSUE 30

OIL AND GAS IN A GLOBAL WATER DEMAND PERSPECTIVE 31

WATER USE IN UPSTREAM OIL AND GAS ACTIVITIES 32

PRODUCED WATER 34

OTHER WATER RETURNS 36

INJECTED WATER 36

WATER USE AND WATER RETURNS HEAT MAP FOR EXPLORATION AND PRODUCTION ACTIVITIES 36

NOTE 37

REFERENCES 37

2. Industry Water Management Practice in Upstream Oil and Gas Operations 39

OVERVIEW 39

COMPANY POLICY AND WATER MANAGEMENT SYSTEMS 39

INDUSTRY APPROACHES TO WATER MANAGEMENT 42

WATER USES IN UPSTREAM OPERATIONS 42

WATER EFFICIENCY MEASURES 46

PRODUCED WATER 46

INJECTED WATER FOR PRESSURE SUPPORT 47

IDENTIFICATION OF WATER SOURCES 49

TOOLS FOR WATER RISK ASSESSMENT 49

TREATMENT AND SCOPE FOR PW REUSE AND RECYCLING 51

SUMMARY OF POSSIBLE WATER USES AND ASSOCIATED QUALITY REQUIREMENTS 53

RESIDUAL WASTE MANAGEMENT 54

WATER EFFICIENCY REPORTING 55

WATER MANAGEMENT IN REFINERY OPERATIONS 55

NOTES 58

REFERENCES 59

3. Assessment of Water Sources and Supply Risks at the National Level 61

OVERVIEW 61

BROADER WATER MANAGEMENT CONTEXT 62

HYDROLOGICAL PROCESSES AND GROUNDWATER 62

INSTITUTIONAL FUNCTIONS AND LEGAL FRAMEWORK 66

ESIA PROCESS 66

RISK ANALYSIS 67

NATIONAL WATER ASSESSMENT 68

REQUIRED DATA, COLLECTION, AND PROCESSING 69

WATER RESOURCE ASSESSMENT 72

WATER SUPPLY RISKS 75

BUILDING BLOCKS OF WATER MANAGEMENT AND GOVERNANCE 76

CONCLUDING OBSERVATIONS 77

REFERENCES 78

4. Water Treatment Technologies and Their Possible Impact on Water Management Options 80

OVERVIEW 80

WATER TREATMENT INTRODUCTION 80

WATER TREATMENT REQUIREMENTS FOR INTERNAL USE OF WATER BY OIL AND GAS COMPANIES 82

WATER TREATMENT REQUIREMENTS FOR EXTERNAL USE OF WATER BY OIL AND GAS COMPANIES 89

REDUCING FRESHWATER EXTRACTION 95

CONCERNS WITH EXTERNAL USE OF PW 97

TREATMENT TECHNOLOGY POSSIBILITIES FOR EXTERNAL USE 99

CONCLUDING OBSERVATIONS 105

NOTES 106

REFERENCES 106

5. Legal, Regulatory, and Contractual Framework for Water Management 110

OVERVIEW 110

REGULATORY AND CONTRACTUAL REGIME FOR PETROLEUM OPERATIONS 110

LEGAL AND REGULATORY FRAMEWORK FOR WATER MANAGEMENT 117

FRESHWATER AND PW MANAGEMENT IN SELECTED COUNTRIES 120

IWRM 134

LESSONS LEARNED 139

NOTES 140

REFERENCES 141

6. Leading Industry Practices Illustrated by Case Studies 144

OVERVIEW 144

CASE STUDIES OVERVIEW 144

PETROBRAS (BRAZIL): WATER SOURCE ASSESSMENT AND WATER RISK ESTABLISHMENT 148

PETRONAS (MALAYSIA): BUSINESS CONTINUITY IN WATER-STRESSED CONDITIONS 151

SAUDI ARAMCO (KINGDOM OF SAUDI ARABIA): USE OF TSE IN COOLING SYSTEMS 153

ENI (ITALY): ENI REWIND BLUE WATER TECHNOLOGY AND ITS APPLICATION 158

PETROBRAS (BRAZIL): INTERNAL REUSE OF PW 168

ECOPETROL (COLOMBIA): REUSE OF PW IN AGROFORESTRY AND LIVESTOCK ACTIVITIES 170

PDO (OMAN): REEDBED TREATMENT OF PW AND REUSE FOR IRRIGATION PURPOSES 175

SAUDI ARAMCO (KINGDOM OF SAUDI ARABIA): TREATMENT OF SALINE PW WITH BROAD REUSE POTENTIAL 179

NOTES 187

REFERENCES 187

7. Policy Guidelines for Regulating Water Management in Petroleum Upstream Operations 189

OVERVIEW 189

NATIONAL WATER RESOURCE MANAGEMENT FRAMEWORK 189

OIL AND GAS SECTOR FRAMEWORK 193

WELL DRILLING: FROM EXPLORATION TO COMMERCIAL DISCOVERY 198

PfDO 199

FRESHWATER USE AND WATER RETURNS IN OIL AND GAS OPERATIONS 202

PRODUCED WATER 205

CROSS-CUTTING ISSUES 209

NOTE 213

REFERENCES 213

APPENDIX A. Water Management in New South Wales, Australia 215

APPENDIX B. Integrated Water Resources Management 222

Tables

TABLE 2.1. Solutions for the efficient use of water in water-stressed areas 47

TABLE 2.2. Water uses and quality required for oil and gas upstream operations 53

TABLE 2.3. Water quality requirement by type of beneficial uses 54

TABLE 3.1. ESIA risk analysis matrix 68

TABLE 3.2. Water data sources 71

TABLE 4.1. Key characteristics of external water sources or produced water to consider to support the oil and gas industry 82

TABLE 4.2. Injection water quality parameters 83

TABLE 4.3. FAO-UN guidelines for irrigation water quality parameters 91

TABLE 4.4. Cases of successful irrigation of non-food crops with PW 92

TABLE 4.5. FAO water quality guidelines for livestock and poultry uses 93

TABLE 4.6. Guidelines for upper levels of toxic substances in livestock drinking water 93

TABLE 4.7. Cost of alternative desalination technologies 104

TABLE 5.1. Pakistan's legal, regulatory, and contractual framework 126

TABLE 5.2. Uganda's legal, regulatory, and contractual framework 128

TABLE 5.3. Sudan's legal, regulatory, and contractual framework 131

TABLE 5.4. Standard limits for PW (mg/l) 132

TABLE 5.5. Discharge limits for PW in HSE requirements and guidance, GDESH 2016 133

TABLE 6.1. Comparison of groundwater and TSE characteristics 156

TABLE 6.2. Chemical characterization of PW after primary treatment (BW feed) 162

TABLE 6.3. Blue Water Plant capital expenditures 167

TABLE 6.4. Comparison of water quality of treated PW and groundwater 172

TABLE 6.5. NWTP project performance 177

TABLE 6.6. Operational energy requirements for wetland plant and deep disposal wells 178

TABLE 6.7. PW desalination technology readiness level 181

TABLE 6.8. PW quality overview with target quality 182

Figures

FIGURE ES.1. Structure and key components of policy guidelines for water management 19

FIGURE 1.1. Global water demand by sector, 2014-40 32

FIGURE 1.2. Freshwater consumption in power generation and primary energy production 32

FIGURE 1.3. Range of water use for key upstream operations 33

FIGURE 1.4. Total volume of oil, gas, and PW from the approximately 1 million operating oil and gas wells in the United States 34

FIGURE 1.5. Distribution of reuse and disposal of PW in the United States 35

FIGURE 1.6. Typical oil and water production profile and volume of injected water during the life of a conventional oil field 36

FIGURE 1.7. Heat map of water-using activities and return flows in oil and gas upstream operations 37

FIGURE 2.1. Typical elements of a health, safety, and environment management system 40

FIGURE 2.2. Schematic of mud and cuttings treatment and disposal 44

FIGURE 2.3. Schematic of produced water use in conventional oil production 45

FIGURE 2.4. Typical water profile over the life cycle of an oil and gas field 50

FIGURE 3.1. Food-energy-water nexus 62

FIGURE 3.2. Hydrological cycle 63

FIGURE 3.3. Distribution of freshwater resources 64

FIGURE 3.4. Schematic of subsurface water system in unconfined and confined aquifers 65

FIGURE 3.5. Steps of the ESIA process 67

FIGURE 3.6. Example of a river basin and groundwater model 72

FIGURE 3.7. Multiple dimensions of water management and governance 77

FIGURE 4.1. Typical water source and application schematic for treating PW in upstream operations 81

FIGURE 4.2. Typical seawater treatment line-up 84

FIGURE 4.3. Typical PW treatment line-up for PW reinjection 85

FIGURE 4.4. Typical PW treatment line-up for chemical EOR 86

FIGURE 4.5. Typical PW treatment line-up for thermal EOR 86

FIGURE 4.6. Horizontal drilling in oil- and gas-rich shale 87

FIGURE 4.7. Typical produced water treatment line-up for unconventional operations 88

FIGURE 4.8. Removal steps for use of seawater and PW in oil and gas operations 88

FIGURE 4.9. Fit-for-purpose reuse evaluation process 89

FIGURE 4.10. Possible uses of produced water 90

FIGURE 4.11. Estimated resource range in wastewater from unconventional oil and gas formations in the United States 94

FIGURE 4.12. Distribution of Earth's water 95

FIGURE 4.13. OSPAR convention's risk-based approach for discharging produced water overboard 98

FIGURE 4.14. Treatment technologies for PW 100

FIGURE 4.15. Total cost of schemes used in produced water treatment (including membranes) 101

FIGURE 4.16. Example of water treatment for municipal use in Cape Verde 103

FIGURE 4.17. Technologies tested for PDO's Nimr Water Treatment Plant 104

FIGURE 5.1. Scope of components of the petroleum regime 112

FIGURE 5.2. Typical government functions and institutional structure for petroleum sector management 114

FIGURE 5.3. Upstream oil and gas activities and associated environment and water assessments 115

FIGURE 6.1. WSRI subindexes and categories or risk levels 150

FIGURE 6.2. COC of the cooling system operating with TSE 157

FIGURE 6.3. Block flow diagram of the pilot plant 163

FIGURE 6.4. Blue Water Plant general layout (project under permitting procedure) 167

FIGURE 6.5. Cross-section of the reedbed at the NWTP 177

FIGURE 6.6. PW reuse: process schematic 180

FIGURE 6.7. Technology readiness levels 181

FIGURE 6.8. Pretreatment (de-oiling) and desalination schematic for PW reuse 182

FIGURE 6.9. PW desalination: membranes 183

FIGURE 6.10. PW desalination: membranes process scheme 183

FIGURE 6.11. PW desalination: high salinity (〈150,000 mg/l) 184

FIGURE 6.12. PW desalination: mechanical vapor compression process schematic 185

FIGURE 6.13. PW desalination: mechanical vapor compression principle 185

FIGURE 6.14. PW reuse: water circularity 186

FIGURE 7.1. Structure and key components of policy guidelines for water management 190

FIGURE 7.2. Main steps in the PfDO process 199

FIGURE 7.3. Main steps in the ESIA process 202

FIGURE 7.4. Example of water-to-oil ratio toward the end of a conventional oil field's production life 205

Boxes

BOX 2.1. Key elements of IPIECA's water management framework 40

BOX 2.2. Facts on water in hydrocarbon reservoirs 48

BOX 2.3. Eni's approach to assessing water risk 50

BOX 2.4. Excerpts from the Carbon Disclosure Project Water Security 2022 Questionnaire 56

BOX 2.5. Khartoum Refinery in Sudan 57

BOX 3.1. Key elements of an ESIA and ESIA report 68

BOX 3.2. Minimizing the surface footprint of petroleum operations 69

BOX 3.3. Examples of programs for national hydrography 70

BOX 3.4. Regional water assessment of Lake Chad Basin 73

BOX 4.1. Preserving fresh water: the Dawson Creek reclaimed water project 96

BOX 5.1. Production-sharing agreement 113

BOX 5.2. Model for petroleum and environment authorities' regulatory interaction 116

BOX 5.3. Key integrated water resource management principles 135

BOX 5.4. Insights from countries' experience with integrated water management 138

BOX 6.1. Information available in the Aqueduct Water Risk Atlas 152

BOX 6.2. Petronas's Water for Life Program 153

BOX 6.3. Key characteristics of the full-scale Blue Water Plant 165

Maps

MAP 1.1. World map of water shortage areas, expressed as the number of months in which freshwater demand exceeds water availability 31

MAP 4.1. Distribution of drylands and main oil and gas production zones in these areas 91

MAP 4.2. Desalination capacity map 103

MAP 6.1. Geographical location of case studies 145

MAP 6.2. Locations of Petrobras's upstream activities 149

MAP 6.3. Malaysia's oil and gas infrastructure 152

MAP 6.4. Location of Eni's Centro Olio Val D'Agri (COVA) 159

MAP 6.5. Location of Ecopetrol's PW for agroforestry and livestock project 171

Photos

PHOTO 2.1. Bioremediation facility with settling lagoons and engineered wetlands (Heglig, Sudan) 52

PHOTO 2.2. Well pads, central processing facility, and water treatment ponds (Palouge, South Sudan) 52

PHOTO 4.1. Miraah solar plant delivers first steam to Amal West Oil Field 87

PHOTO 6.1. Cooling tower and pilot setup at a Saudi Aramco facility 154

PHOTO 6.2. Scale deposits on condenser surface with use of groundwater 155

PHOTO 6.3. Scale deposits on condenser surface with use of TSE 157

PHOTO 6.4. Some sections of the pilot plant installed and run, 2013-14 164

PHOTO 6.5. Structure for the assembly and installation of pumps and filters in an offshore production unit that was not initially designed for PW reinjection 169

PHOTO 6.6. Change in the ASA after environmental rehabilitation, planting, and irrigation 173

PHOTO 6.7. Aerial view of the NWTP 176

PHOTO 6.8. PW desalination: membranes at field site 184

PHOTO 6.9. PW desalination: mechanical vapor compression at field site 186

Box Tables

TABLE B6.3.1. Main operation units and associated treatment sequence of the full-scale Blue Water Plant 165

TABLE B6.3.2. Main features of the Blue Water Plant 166

Box Figures

FIGURE B2.1.1. Key elements of IPIECA's water management framework 41

FIGURE B2.2.1. How water, oil, and gas fill the pore space in reservoir rock 48

FIGURE B3.2.1. Comparison of separate vertical production wells with cluster of deviated production wells 69

FIGURE B3.4.1. Illustration of Lake Chad Basin freshwater shortage concerns and the associated environmental and social impacts 74

FIGURE B5.1.1. Structure of a production-sharing contract 113

FIGURE B6.3.1. Physical design of the Blue Water Plant 166

Box Photos

PHOTO B2.5.1. Wastewater ponds at the Khartoum Refinery 58

PHOTO B4.1.1. Dawson Creek lagoon 96

Appendix Figures

FIGURE B.1. IWRM thematic areas and elements of regulation and compliance 224

Appendix Boxes

BOX A.1. Roles and responsibilities of key New South Wales agencies 216

BOX A.2. Major elements of a water-sharing plan 218

BOX A.3. Aspects specified in groundwater-sharing plans 220

BOX B.1. Key integrated water resource management principles 223

출판사 책소개

알라딘제공

Steadily increasing demand for water poses a threat to sustainable development, and an increasing number of regions are chronically short of water. Putting caps on water consumption, increasing water use efficiencies, and supporting improved sharing of water resources are now critical to reducing the perils posed by water scarcity to biodiversity and human welfare. Although freshwater demand in oil and gas operations is a small fraction of global water demand, oil and gas fields are commonly clustered in smaller areas, where their operations often dominate freshwater

abstraction and wastewater discharge. At the same time, oil production generates large amounts of produced water that may be used to reduce freshwater abstraction and possibly serve beneficial purposes outside the petroleum sector.

In the most advanced countries, regulation promotes the sound use of freshwater in the oil and gas industry and incentivizes the reuse or beneficial use of treated produced water. Regulation is also used to prevent the contamination of freshwater resources from the disposal of unproperly

treated produced water. In many developing and emerging economies, however, regulation to prevent water contamination is often lacking or nonexistent or, when present, is poorly enforced.

Optimal policy and regulation of the use of freshwater and the reuse of water generated by oil and gas operations depend on a range of geographic, geological, technical, and economic factors. Water Management in Oil and Gas Operations: Industry Practice and Policy Guidelines for Developing Countries identifies common policy principles organized around key regulatory functions and critical links of the oil and gas value chain. This report offers practical solutions to guide policy makers and regulators seeking to minimize the environmental impacts of oil and gas perations,

to promote sustainable cross-sectoral economic linkages, and to reduce competition and potential confl icts over access to and use of water resources.

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