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Introduction to Water in Oil & Gas

The water and energy sectors, though commonly considered separately for the purposes of reporting and analysis, are growing closer and closer together. Growing water demand with global population expansion requires more energy to treat and transport water. Water jurisdiction can be a complex network of agencies, sometimes with overlapping authority, that regulate competing interests of what may be a limited resource. Water rights in the United States can be as complicated as jurisdiction, with some states following riparian law and others following the prior appropriation doctrine. In addition, climate change affects global water availability, which in turn affects the water available for oil and gas operations.

Emerging energy development technologies both in oil and gas production and refining are growing more and more water-intensive. Hydraulic fracturing is an important component of unconventional operations in oil and gas. Produced fluids, or the naturally-occurring brine from deep in the Earth that comes to the surface with hydrocarbons during production, remain a challenge for operators in terms of recycling, treatment and disposal. Each oil well produces anywhere from 0.5 to 10 or more times more water than it does hydrocarbons.

Why It Matters

The effective management of both energy and water resources is key to a sustainable future. Balancing the water needs of the energy industry with those of other demands including industrial use, irrigation, power generation and municipal and private supplies that withdraw water from the hydrologic cycle remains one of the grand challenges.

Learning Objectives

  • Describe the connection between water and energy.
  • Recognize the uses of water in various sectors.
  • Identify typical water jurisdictions and water rights and how they may differ geographically.
  • Describe trends in water consumption, specifically how water is used in power generation.
  • Identify the differences between power generation technologies.
  • Describe some of the factors and obstacles related to sourcing water for oil and gas operations.
  • Explain how natural event, such as floods and drought, affect oil and gas operations.
  • Explain how the Shale Boom changed the energy landscape.
  • Describe both how and in what quantity water is used, treated, recycled or disposed of in oil and gas operations, citing examples from recent unconventional plays.
  • Summarize how significant advances in water management have impacted unconventional oil and gas production.
  • Briefly explain technological advancements for hydraulic fracturing from immediately post-Civil War to today.
  • Describe how operators dispose of water permanently in situations in which treatment of flowback and produced water is not appropriate or affordable.

Images: “Power Plant” by reolal via Shutterstock.com