Case Study, Cost Benefit Analyses of Centralized Treatment versus Mobile Decentralized Treatment for Produced Water from an Unconventional Oil Development

This paper describes the development of a basis of design, and alternatives evaluation of produced water treatment options for a new unconventional oil development in the Rocky Mountain region. The business drivers for treating produced water for reuse in hydraulic fracturing operations are to (1) reduce water management costs for water supply and produced water disposal, and (2) reduce the freshwater footprint of operations and subsequently, operational risks related to water scarcity and price escalation. As part of this study, multiple factors contributing to the economics, feasibility, and scale of produced water treatment were evaluated, including estimation of current and future water demands for operations, water quality requirements for hydraulic fracturing, baseline economics of water supply and disposal, logistics and infrastructure, regulatory environment, and the costs and benefits of centralized versus mobile decentralized treatment. Cost estimates for both a skid mounted semi-permanent, centralized, stationary treatment system and dispersed mobile treatment systems were developed and compared with current and potential future costs of raw water supply and wastewater disposal. Payback periods for initial investments and potential for long-term cost savings through implementation of treatment and reuse practices were evaluated.