Playbooks Supplements

Water Management Techbook 2017

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Page 53 of 55

52 | May 2017 | WATER MANAGEMENT: CASE STUDIES analysis conducted by IHS quantifies the economic value of water for oil and gas operations. In this specific case, Devon experienced a $12 million loss of revenue per well and regression analysis linked 30% to 40% of the lost revenue to the supply chain challenges associated with water sourcing during completion. Thus, for Devon, during a high-growth phase of drilling and completion, supply-chain risk placed the value of water at between $80 and $95 per bbl of water. Faced with this situation, operators have his- torically had to choose to either continue activity as normal until the supply-chain fails—causing a complete interruption to drilling and completion programs—or hope that they have sufficient access to infrastructure and service providers to ride out the period of risk. Today, operators recognize that options for water management are no longer constrained to contacts they happen to know personally. The 21st century offers a digital economy in which operators can search, discover and optimize water management options that they did not know existed or excess capacity from known suppliers that would have otherwise gone to waste. ■ Search results for a disposal well in Midland, Texas, can be sorted to show the best deal, the closest location or by volumes.

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