martes, 27 de junio de 2017

Analysts: Water Needs, Spend To Escalate

Source: Tom Fox

Oil and Gas Investor
By Susan Klann 
Friday, June 23, 2017

Horizontal drilling and upsized completions have fast-forwarded the oil and gas industry’s demand for water. At the same time, the lower for longer oil price recovery has placed ever more pressure on operators to cut costs, including for water, according to a new report, “Water for U.S. Hydraulic Fracturing,” from Bluefield Research.

The report forecasts that at a flat rig count of 650, 20.8 billion barrels (bbl) of water will be required for hydraulic fracturing from 2017 through 2026. Last year, fracturing consumed more than 1.3 billion bbl of water and produced 574 million bbl of water for disposal. Investors and industry players are positioning to play a role in this growing water market.

With operators drilling faster, and employing longer laterals, completions now require as much as 12 million bbl of water per frack—triple the volumes of five years ago, the Bluefield authors said. They project that water management, including water supply, transport, storage, treatment and disposal, will total $136 billion from 2017 to 2026 for the U.S. hydraulic fracturing sector.

High reuse rates in the Marcellus and scaling Permian activity—where water per frack ratios are the highest—drove treatment spending to about $198 million in 2016 with an annual spend of $307 million expected for 2017.

“Demand is rising exponentially, particularly in West Texas,” the authors said, “because of increased water volume per frack and an almost 30% reduction in time required to complete a well.”...

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