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Providing coverage of Alaska and northern Canada's oil and gas industry
December 2006

Vol. 11, No. 51 Week of December 17, 2006

Produced water: could it be a valuable resource?

Alan Bailey

Petroleum News

Produced water — the underground water that comes to surface as part of oil and natural gas production — has traditionally enjoyed few uses other than reinjection into oil reservoirs to flush out more oil.

But could the water provide additional value?

On Dec. 5 the U.S. House of Representatives passed the More Water for More Energy Act of 2006, legislation that aims to push value-adding uses for produced water. The act directs the Secretary of the Interior, acting through the commissioner of Reclamation and the director of the U.S. Geological Survey, to conduct a study into making more use of the water. The study will identify the obstacles to increasing the use of produced water for irrigation and other purposes and will establish actions to overcome those obstacles. The act also directs the secretary of the Interior to award grants to assist in the development of facilities that demonstrate how the use of produced water can increase.

IOGCC has done national research

The Interstate Oil and Gas Compact Commission, an agency that promotes the conservation, the efficient recovery and the safe recovery of the U.S. oil and gas resources on behalf of the governors of 30 member states and seven associate states, has conducted a national research program into the uses of produced water. The U.S. Department of Energy funded the research, while representatives from ALL Consulting, the Montana Board of Oil and Gas Conservation, the Wyoming Oil and Gas Conservation Commission, the Alaska Oil and Gas Conservation Commission, the Oklahoma Corporation Commission, the Kansas Corporation Commission, Citizens for Resource Development and the oil and natural gas industry assisted with the research.

Among the research findings was a determination that U.S. oil and natural gas operations yield approximately 14 billion barrels of water every year. The salinity of some of this water is too high for crop irrigation but large quantities of produced water could be used in applications such as power generation or enhanced oil recovery.

In September IOGCC used the research results in expert testimony in support of the More Water for More Energy bill. The commission believes that more use could be made of produced water.

“Water produced as a result of oil and gas exploration represents a valuable natural resource to this country, especially in the arid western United States and in areas experiencing prolonged drought,” said Christine Hansen, IOGCC executive director. “The IOGCC is pleased that this bill recognizes the benefits of this resource so it will not be wasted.”

The report from the IOGCC research is available at http://www.iogcc.state.ok.us/news_pubs.aspx.






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