In today’s upstream oil and gas production operations, a great deal of attention is being paid to activities surrounding water management and the costs associated with water transportation. Water is a major part of the unconventional production process and effectively managing the use and disposal of water throughout the process can prove difficult. Water management processes differ by region, by well and depend on the production cycle.
Many companies struggle internally to account for the increased volumes of water utilized in the drilling, completion, and flowback processes. Effective management of costs requires developing projections, tracking inventories, accurately allocating volumes, reconciling run tickets and invoices, generating internal reports and meeting regulatory reporting requirements.
To address some of these issues, oil & gas companies may want to explore their current metering, hauling, data capture, reconciliation and reporting processes to see where best practices are in effect and where improvements can be achieved. Minimizing manual activities and validating hauler charges can reduce operational costs and drive higher returns. Key process areas for water management include:
Visit Part 2 of this topic for details on how to evaluate these process areas and identify cost saving opportunities within your water management program.