Wednesday, February 8, 2012

Information on the Quantity, Quality, and Management of Water Produced during Oil and Gas Production -- GAO

This report from the Government Accountability Office titled Information on the Quantity, Quality, and Management of Water Produced during Oil and Gas Production, (GAO-12-156, Jan 9, 2012), found that "A significant amount of water is produced daily as a byproduct from drilling of oil and gas. A 2009 Argonne National Laboratory study estimated that 56 million barrels of water are produced onshore every day, but this study may underestimate the current total volume because it is based on limited, and in some cases, incomplete data generated by the states.

In general, the volume of produced water generated by a given well varies widely according to three key factors: the hydrocarbon being produced, the geographic location of the well, and the method of production used... Generally, the quality of produced water from oil and gas production is poor, and it cannot be readily used for another purpose without prior treatment. The specific quality of water produced by a given well, however, can vary widely according to the same three factors that impact volume—hydrocarbon, geography, and production method.

Oil and gas producers can choose from a number of practices to manage and treat produced water, but underground injection is the predominant practice because it requires little or no treatment and is often the least costly option. According to federal estimates, more than 90 percent of produced water is managed by injecting it into wells that are designated to receive produced water. A limited amount of produced water is disposed of or reused by producers in other ways, including discharging it to surface water, storing it in surface impoundments or ponds so that it can evaporate, irrigating crops, and reusing it for hydraulic fracturing. Managing produced water in these ways can require more advanced treatment methods, such as distillation. How produced water is ultimately managed and treated is primarily an economic decision, made within the bounds of federal and state regulations.

The management of produced water through underground injection is subject to the Safe Drinking Water Act’s Underground Injection Control program, which is designed to prevent contamination of aquifers that supply public water systems by ensuring the safe operation of injection wells. Under this program, the Environmental Protection Agency (EPA) or the states require producers to obtain permits for their injection wells by, among other things, meeting technical standards for constructing, operating, and testing and monitoring the wells. EPA also regulates the management of produced water through surface discharges under the Clean Water Act. Other management practices, such as disposal of the water into surface impoundments, irrigation, and the reuse of the water for hydraulic fracturing, are regulated by state authorities.

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