Concept Report / Preliminary Concept Report / Preliminary Technical and Cost Analysis Technical and Cost Analysis Delivery of Treated Produced Delivery of Treated Produced Water from Indian Basin and Water from Indian Basin and Dagger Draw to the Pecos River, Dagger Draw to the Pecos River, Eddy County, New Mexico Eddy County, New Mexico
Concept Report / Preliminary Technical and Cost Analysis Delivery of Treated Produced Water from Indian Basin and Dagger Draw to the Pecos River, Eddy County, New Mexico. R.T. Hicks Consultants Bohannon-Huston US Filter. Scope of Work. Treatment and Delivery of Produced Water to the Pecos River - PowerPoint PPT Presentation
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Concept Report / Preliminary Concept Report / Preliminary Technical and Cost AnalysisTechnical and Cost Analysis
Delivery of Treated Produced Water Delivery of Treated Produced Water from Indian Basin and Dagger Draw to from Indian Basin and Dagger Draw to
the Pecos River, Eddy County, New the Pecos River, Eddy County, New MexicoMexico
• Pipeline to Carlsbad and connect to existing lines
Pipeline CostsPipeline Costs
• Pipeline Length (mi) 27.03
• Capital Cost ($) < 26,152,700
• O&M Cost ($/Yr) 8,000
• Cost / Barrel 0.04
• Cost / 1000 gal 0.93
• Cost / Ac-ft 303.00
Treatment of HTreatment of H22SS
• At this scale, maybe $0.05 - $0.07/bbl
• At smaller scale actual H2S treatment is at least 20 cents/bbbl
• SWAG of total costs for delivery to potash industry:
10-12 Cents/bbl
Existing Cost for InjectionExisting Cost for Injection
• Capital costs are already amortized
(about 10-15 cents/bbl)
• O&M costs are about 5 cents/bbl
• Gas production is in decline, < 10 years of production remains, no additional capital for disposal
• Bottom Line: Treatment and Delivery must meet the 5 cents/bbl existing cost
What Did We Learn?What Did We Learn?
• Treatment and delivery to the Pecos River might have been economically viable BEFORE the oil and gas producers sunk large capital costs for injection
• However, must reduce costs below the predicted 32-35 cents/ bbl for Option B
• The Tax Incentive (8 cents/bbl for 5 years) is not sufficient to overcome economics
Delivery to Potash Industry?Delivery to Potash Industry?• Might be economically viable IF gas/water
production continues for more than 10 years
• The Tax Incentive (8 cents/bbl for 5 years) is not sufficient, given the uncertainties of gas and water production
• The Government could fund the pipeline, charge for water delivery, and hope for a payback (in water transport fees, by continued agriculture, and > 10 year life.)
What is Next?What is Next?
• Wyoming Coal Bed Methane - Big George
• The Next Indian Basin Gas Field
• New Treatment Technologies
• “Out of the Box” Thinking About Water Management
• A Willingness to Sacrifice Some Water Quality for More Water Quantity