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Produced Water White Paper 64 6 The Cost of Produced Water Management There are many sources of site-specific costs in the literature. For the purposes of this white paper, it is impractical to list hundreds of single-cost values from different references. Instead, this chapter discusses the components that contribute to water management costs, and gives a few examples from references that report data from multiple sources. It is well understood that for conventional oil and gas production, the volume of water produced by a well and a field will increase over time and the volume of oil and gas produced will decline. At some time, the revenue from the oil and gas is not sufficient to cover the costs of operation (a growing portion of those costs will be water management) and the well will be shut in. 6.1 Components of Cost Produced water management is generally expensive, regardless of the cost/barrel, because of the large volumes of water that must be lifted to the surface, separated from the petroleum product, treated (usually), and then injected or disposed of. The previous chapter outlined a wide array of options for managing wastes. These all are driven by minimizing some or all of the individual cost components. The following list includes many of the components that can contribute to overall costs: - Site preparation - Pumping - Electricity - Treatment equipment - Storage equipment - Management of residuals removed or generated during treatment - Piping - Maintenance - Chemicals - In-house personnel and outside consultants - Permitting - Injection - Monitoring and reporting - Transportation - Down time due to component failure or repair - Clean up of spills - Other long-term liability. As an example of how a large, multinational company looks at cost, Shell’s cost distribution is reported by Khatib and Verbeek (2003) as pumping (27.5%), deoiling (21%), lifting (17%), separation (15%), filtration (14%), and injecting (5%).PDF Image | Produced Water from Production of Crude Oil
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