Water Use in the Alberta Energy Industry – AERI Initiatives APEGGA Practice Development Event – April 17, 2007 Richard Nelson Alberta Energy Research Institute (AERI)

2 Mission: Enhance the development of clean energy resources through research, technology and innovation. Mandate:  Position Alberta for the future in energy  Add value to Alberta’s energy resources  Encourage and invest in technology and innovation  Coordinate R&D across agencies Strategy:  Partnerships & International collaboration Alberta Energy Research Institute (AERI)

3 AERI’s Technology Focus Oil Sands UPGRADING Lower intensity Higher acceptance Value added CO 2 and Emissions Water Use Clean Carbon/Coal Renewables Recovery Conventional Unconventional Bitumen – lower intensity Bioenergy Geothermal Hydrogen/fuel cells Alberta “niche” Integration with “opportunity” feedstock

4 Recent WATER Initiatives Produced Water – Beneficial Re-Use :  Fossil Water Corporation  Completed July, 2007 SAGD Produced Water Treatment Test Facility :  Gov’t and Industry Stakeholder led EOI  EOI distributed by AERI  Currently in negotiations with potential operator A 2020 Fresh Water Neutral Upstream Petroleum Industry :  Alberta WaterSMART  Completed March, 2008 Universities and Research Institutions :  CONRAD  OSTRF

5 Produced Water – Beneficial Re-Use Fossil Water – PTAC  use of existing information sources  implementation of alternative approaches to water use.  focuses on high-TDS produced water  (in excess of 4,000 mg/l).

6 Produced Water – Beneficial Re-Use

7 Potential re-use applications:  well stimulation fluids;  drinking water aquifer restoration;  dust suppression;  livestock watering;  spray irrigation; and,  Sub-surface irrigation.

8 Produced Water – Beneficial Re-Use Potential liability issues:  Nuisance  Negligence  Strict Liability  Trespass  Riparian Rights  Statutory Breach  Contractual Breach

9 Produced Water – Beneficial Re-Use Conclusions:  beneficial reuse of produced water requires:  Enhanced characterization of produced water quality  Confirmation of treatment technologies  Streamlined approval process:  Codes of Practice  Monitoring and Enforcement:  standardized approval and reporting practices  Economic incentives:  creation of framework to promote re-use and substitution.

10 SAGD Produced Water Treatment Test Facility Facility Attributes:  Data acquisition, mobile, multiple water streams  Designed, built and Operated privately  First Demonstration Project:  Data acquisition, data quality, data availability  Plug and Play Technology Evaluation  Self contained  Flexible  Location example: SAGD operating facility

11 SAGD Produced Water Treatment Test Facility

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14 A 2020 Fresh Water Neutral Upstream Petroleum Industry  The study, by Alberta WaterSMART evaluated:  The potential for technology and policy to move the UPI towards a fresh water neutral position by  Where:  Fresh water defined as surface or subsurface water with a conductivity 4,000 mg/L or less.  The basis for neutrality assumes a water balance between the south and the north.

15 A 2020 Fresh Water Neutral Upstream Petroleum Industry  The study identified that:  the fresh water demand of conventional Oil production is dropping.  the oilsands are the largest consumer of fresh water today.  the oilsands will consume an even larger percentage of fresh water in 2020.

16 A 2020 Fresh Water Neutral Upstream Petroleum Industry The water demand forecast in this study assumes that this historical rate of decline will continue until 2020 when the consumption of fresh water will be close to zero.

17 A 2020 Fresh Water Neutral Upstream Petroleum Industry The most significant opportunity in the south of the province:  Conventional produced water treatment with such technologies as:  Reverse osmosis,  Electro-deionization (EDI),  Membrane technologies and  Evaporation-crystallization

18 A 2020 Fresh Water Neutral Upstream Petroleum Industry

19 Oilsands Mining:  enhance water treatment to improve recycle rates  reducing dependence on fresh water for cooling  accelerate consolidation of the tailings (release water)  Water trapped in tailings accounts for a significant percent of makeup water demand.  Research efforts need to be focused on the water contained within the tailings stream and its recovery.

20 Cummulative MFT Volume Mature Fine Tailings Business as Usual Stabilization 3 bbl of freshwater/1 bbl of bitumen 0.25 m3 MFT /1 bbl of bitumen MFT is 60 to 70% water by volume

21 A 2020 Fresh Water Neutral Upstream Petroleum Industry Figure 11. Forecast of 2020 UPI Fresh Water Demand and Offsetting Technologies Ranked by Magnitude of Potential Reductions

22 CONRAD Canadian Oilsands Network for Research and Development:  CONRAD is a network.  As of 2006, there were 38 members in CONRAD  Two primary research work working groups  RFPs are formulated each year  Current operational issues; fundamental science and technology development.

23 OSTRF Oil Sands Tailings Research Facility:  Operated by the University of Alberta.  Designed to demonstration scale  The vision is next generation tailings disposal options.  Membership funding.  Graduate Research

24 Take Home Messages  Water is a High priority with AERI.  Beneficial re-use of Produced water is achievable  The MODAC will demonstrate next generation treatment technologies.  Significant opportunities for freshwater reduction and offset in the upstream Oil and Gas industry  Stabilization of Tailings Ponds is Critical

25 Contact Information L. Richard Nelson Program Director, Renewables and Water Use in Energy Alberta Energy Research Institute Ministry of Advanced Education and Technology Phone: (780)