A proportion (25% to 100%) of the water used in hydraulic fracturing is not recovered, and consequently this water is lost permanently to re-use, which differs from some other water uses in which water can be recovered and processed for re-use.
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Follow the Water – Chevron’s Kaybob Duvernay Water Assets by BOE staff,
March 14, 2024
As recently announced, Chevron is putting its Kaybob Duvernay assets up for sale which is a 70% operated interest (with the other 30% non-operated interest owned by Kuwait’s KUFPEC). Connate Water Solutions’ main interest is the extensive Duvernay water management infrastructure in-place which includes a network of Paskapoo bedrock groundwater supply wells, water storage reservoirs and freshwater pipelines. Interestingly, this asset resulted in an AER 2022 water intensity metric of 2.57 barrels of water to each barrel of oil equivalent (bbl/BOE) in comparison to the 2022 Duvernay formation industry standard of 3.54 barrels of water per BOE (AER, 2024).
Water security risk should be very top of mind for all operators across Alberta given that our current 2024 drought management status is Stage 4 on a 5-stage water shortage scale. At the end of January 2024, the Smoky River flow rate was measured to be 20.3 m³/second, the lowest January measurement in the last 25 years (AEPA, 2024). The next possibility this year could be a declaration of an Emergency under the Water Act with a primary focus on reduction, forced water sharing or suspension of surface water licenses. Fortunately, groundwater supply wells from bedrock aquifers will not be initially targeted and are a more reliable option for Montney / Duvernay producers.
As we review Chevron’s developed Kaybob asset, we note that there are five strategically placed water storage pits including two Little Smoky River intakes (upstream and downstream intake) under a multi year term licence. For the new buyer of these assets, re-activation of the numerous Paskapoo groundwater supply wells will require inspection of the submersible pumps, three phase gen-set power and re-activation of any water level monitoring equipment. Connate Water Solutions provides all of these services and would also recommend an aggressive shock chlorination program as preventative maintenance. We are looking forward to following these assets and are hopeful that they will be utilized by a leading Alberta Duvernay operator.29dk2902l
Contact us today to discuss your Corporate Water Strategy!
www.connatewater.com <http://www.connatewater.com>
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Connate Water Solutions is an innovative provider of professional hydrogeological services, specialized rental equipment and hydraulic fracturing water management solutions. As consolidation of the industry continues within Western Canada and Texas, we believe the demand for customized water management solutions will continue to soar!
_Connate Water Solutions Inc – Groundwater Supply Well Field Update Video_
_References:_
Alberta Energy Regulator. (2024). Available at: https://www.aer.ca/protecting-what-matters/holding-industry-accountable/industry-performance/water-use-performance/hydraulic-fracturing-water-use
Alberta Environment and Protected Areas – AEPA. (2024). Available at : https://www.alberta.ca/drought-current-conditions
Let’s start a conversation about your Water Strategy
Geoff Kovacik M.Sc. P.Geo.
www.connatewater.com <http://www.connatewater.com/>
Connate Water Solutions Inc. | 204-1001 1^st St SE | Calgary, AB T2G 5G3
Connate Water Solutions LLC. | 18911 Hardy Oak Blvd | San Antonio, TX USA 78258