Water Management Strategy

Challenge: A significant unconventional player in Scoop / Stack, experienced increasing difficulties with water management. This required the development of a long-term water management strategy, as well as the implementation of operational changes to realize short-term cost improvements.

OUR ANALYSIS FOUND

There was no pre-existing organization wholly responsible for water management, and as such the process was fragmented across operational groups

Produced water volume was growing in line with production growth, and SWDs were predicted to be overwhelmed within 24 months

Drilling and completions schedules were unstable, with a resulting inability to properly plan a water network and deliver water at planned costs

While there were a number of water management initiatives under way, there was no single identifiable water strategy in place to bind all activities together

Water sourcing and delivery was being managed by a single SME who was rapidly approaching retirement and had no viable replacement to maintain the process

The over-arching regulatory environment was in flux, and there were no contingency plans in place to deal with any likely (or unlikely) regulatory changes

Costs for both delivered and produced water were exceeding budgeted costs by an ever increasing margin

Implementation

A strategy team produced a coherent and executable vision for water management across the entire asset

Operations Strategy

Strategic alternatives were developed and evaluated using all available data (including competitor data where available), resulting in the selection of a single best-fit water strategy

Operations Strategy

A water management group was created to manage all aspects of water sourcing, transport and disposal going forward

OE

Day-to-day water management became a process driven function, freeing the SME to pursue longer-term goals such as water treatment technologies

Organizational Effectiveness

A suite of management controls and metrics were implemented in order to ensure tight control of volumes and costs going forward

Management Operating System & Cost Optimization

The newly developed water strategy was translated into a document that governed water infrastructure development, thus reducing ongoing construction and transportation costs

Operations Excellence & Cost Optimization

Management of temporary infrastructure and rentals improved drastically, further reducing ongoing expenses

Cost Optimization

The water infrastructure timetable was used to coordinate with the drilling group in order to minimize schedule instability and last-minute planning

Operations Excellence & Cost Optimization

CLIENT SUCCESS

Results of our engagement include:

The commissioning and ramp up schedule was completed on time and on budget while exceeding quality and productivity targets with no EHS incidents.

“This is exactly what I wanted. I no longer worry about this any more”

Asset Operations VP

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