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Produced Water White Paper 21 volume was calculated as described above based on the average historic water-to-oil ratio for that state. The final column in Table 3 1 indicates which produced water volume numbers were calculated estimates and which were obtained directly from the states. Since the produced water estimates were made based on historic water-to-oil ratios from API’s 1985 and 1995 studies, the estimates for 2002 do not reflect the fact that while CBM operations generate produced water, they did not produce any crude oil. In addition, since CBM wells generate the greatest amount of produced water early in the life cycle of the well (the opposite of conventional oil and gas operations), the 2002 estimates are likely somewhat lower than the actual volume of produced water generated. For example, data from Kansas (see Tables 3-1 and 3-2) indicated a steady decline in both crude oil and produced water production. However, despite a continued decline in crude oil production in 2002, the volume of produced water nearly doubled from the 1995 figures. Further analysis of the data indicated the start of CBM operations in Kansas during the 2000/2001 timeframe, thus explaining the tremendous increase in produced water volume. We acknowledge this shortcoming for the 2002 data, but for the purposes of this white paper, we did not have the resources or time to develop more sophisticated estimates. The crude oil production volumes in Table 3-2 offer an indication of the direction in which the oil and gas industry is heading. In the decade between 1985 and 1995 (as documented in API’s studies), crude oil production declined a total of 15%, or an average of about 1.5% per year. However, in the period between 1995 and 2002 (as documented in this report), crude oil production declined at an even greater rate by 37%, or by an average of about 6% per year. As anticipated, oil production within the U.S. is declining at an increasing rate. Between 1985 and 2002, U.S. crude oil production had declined a total of 46%. Table 3-1 shows that between 1985 and 1995, the volume of produced water generated declined 13% (average of 1.3% per year). Between 1995 and 2002, the volume of produced water continued to decline but at a lesser rate than the decline in crude oil production. If the produced water from CBM operations could be segregated and excluded from these figures, the decline in produced water production would have likely been as steep as the crude oil production decline during this same period. However, since the states do not typically track these numbers separately, the different types of produced water could not be segregated for this report. A more in-depth analysis would likely be able to provide segregated CBM and conventional oil and gas produced water volume data. API’s 1995 study indicated that the management and disposal of E&P wastes was following a trend toward less discharge and more reuse, recycling, and reclamation (API 2000). With the advent of no discharge criteria for produced water in coastal areas, nearly all produced water from conventional oil and gas operations onshore is being injected. API’s study indicated that approximately 71% of all produced water is being injected for enhanced recovery (beneficial use) while 21% is being injected for disposal. Hence, a total of 92% of all produced water generated is being returned to the subsurfacePDF Image | Produced Water from Production of Crude Oil
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