Water sourcing and produced water management are global challenges that require local solutions. Local water risks are characterized by the combination of social, regulatory, economic and environmental conditions, which are unique to every basin or offshore marine area. Risks are influenced by the type of operation – whether we explore for or produce crude oil, bitumen, natural gas, natural gas liquids or liquefied natural gas – and whether we operate an unconventional reservoir or within a conventional field onshore or offshore. Water risks are managed at the BU level, enabling a tailored region-specific approach.

Our water sources include fresh, non-fresh and reused/recycled produced water used for drilling, enhanced oil recovery (EOR), hydraulic fracturing, steam generation for steam-assisted gravity drainage (SAGD) oil sands production, natural gas and oil terminals, LNG production and domestic purposes.

Produced water from our onshore operations is treated and recycled to hydraulically fracture wells and generate SAGD steam, reused untreated for EOR, or disposed by well injection. Produced water from offshore operations is treated prior to discharge from offshore platforms in accordance with local regulations. We also manage waste water at our terminals, for LNG production and domestic waste water for staff accommodations at remote assets.

Unconventional

In 2021, our unconventional assets included Eagle Ford, Delaware and Midland Basins in the Permian and Bakken in the U.S. and Montney in Canada.

Recycled produced water has been identified as the best option to source hydraulic fracturing operations for our Delaware, Midland and Montney assets. This recycling has both economic and environmental benefits as the use of recycled produced water reduces both the amount of water withdrawn from local sources and the amount of produced water injected for disposal.

Our Delaware and Midland unconventional assets are part of the Permian Basin in West Texas and Southeastern New Mexico. Water sourcing and produced water management are facilitated using centralized water gathering and distribution systems with strategically located recycling facilities. Water infrastructure is a key component of these gathering systems. Virtually none of our source water is transported via truck, and more than 90% of produced water used in our Permian operations is transported via pipeline.

To minimize reliance on local fresh water sources and because some of our Permian assets are located in areas with high baseline water stress, we actively pursue opportunities to use recycled produced water to frack new wells. We have established partnerships with third-party midstream providers for our Midland and Delaware assets for services including water supply and delivery, pipeline design and operation, waste water disposal, and produced water treatment. In 2021, 10 produced water recycling facilities treated water from our own natural gas and oil wells. We also work with third parties to source additional recycled produced water. Our engineered storage pits for treated produced water are double-lined and have leak detection systems, and storage pits and disposal facilities are also equipped with remote monitoring devices. In 2021, 52% of the water used for hydraulic fracturing of new wells in Delaware and 55% of water used in Midland was recycled produced water.

In addition to recycled produced water, we have been using reclaimed municipal waste water for our Midland assets since 2015. This reclaimed waste water is sourced from municipalities and other third parties and treated in the hydraulic fracture process.

In Canada's Montney development, we also manage water using a centralized water gathering and distribution system. Produced water from operating wells is treated for recycling, stored in engineered ponds and then used to complete the next well. In 2021, over 98% of the water used for fracking was recycled produced water due to reduced drilling activity. As more wells are completed in future development phases, we will reduce the volume of fresh water withdrawn from the Halfway River and gradually increase the volume of treated produced water used for new wells.  Our ultimate target is to recycle at least 80% of the produced water for fracking, reducing fresh water withdrawal and produced water disposal. Due to a delay in the development schedule and reduced drilling activity for 2021 we had a surplus of produced water. We turned this challenge into an opportunity by sharing our treated produced water with other local operators, recycling an additional 10% of our total produced water recovered. In turn, we are planning to receive produced water from other local operators to utilize excess capacity at our water treatment facility in 2022. We will use treated third-party produced water to reduce our fresh water use in 2022 and beyond. Learn more about our Montney water management.

In Texas’s Eagle Ford, we target groundwater sources that are not in close proximity to local municipal, domestic or agricultural users. In support of this goal, we progressed our deep water well project in Karnes County. Deeper wells are more likely to be brackish, helping us to boost the volume of non-fresh water used for operations. Source water for drilling and completions is transported using temporary, lay-flat pipelines from central storage ponds, rather than trucks. In 2021, we expanded additional water connections between existing central gathering and disposal systems and central storage ponds in DeWitt and Karnes counties. We also began the installation of a pipeline-based produced water central gathering and disposal system for new facilities in Sugarloaf, located in Live Oak County.  The central water facility is scheduled to be commissioned in 2022. These initiatives have further reduced truck traffic on local roads. In 2021, about 67% of the water sourced for operations in the Eagle Ford was non-fresh water.

For our Bakken operations, water is predominately sourced from local surface and groundwater which is largely transported using temporary, lay-flat pipelines from central storage ponds and underground water distribution systems. Most of produced water is transferred to disposal wells using pipeline infrastructure. In 2021, about 35% of the water sourced for operations in the Bakken was non-fresh water.

Induced Seismicity

We have our own Global Induced Seismicity Guidelines to understand and mitigate potential seismicity related to fracking and produced water injection disposal wells. We evaluate third-party disposal wells by conducting a seismic hazard risk assessment prior to selecting third-party disposal wells for use.

We utilize a range of real-time seismic monitoring networks, including the Texas Bureau of Economic Geology, United States Geological Survey and Nanometrics (a commercial monitoring entity), that enables us to make immediate evaluations and engage in mitigating actions if required. Our protocols reflect variations in local regulatory frameworks.

In 2021, we supported research led by the University of Texas at Austin’s multi-disciplinary Center for Integrated Seismicity Research (CISR) to understand seismicity across Texas. Together with industry partners, we helped fund the research that uses TexNet seismic monitoring data to conduct this analysis. TexNet is a system of earthquake sensors placed in the ground at over one hundred locations across the state of Texas. TexNet data is publicly available and widely used by academics.

We work to reduce the likelihood of induced seismicity events through internal seismic reviews before starting operations and through ongoing engagement with state regulators and other stakeholders.

In 2021, two seismic response areas (SRA) were implemented in the Permian Basin by the Railroad Commission of Texas (RRC), the state agency that regulates the oil and gas industry, in response to increased seismicity. The RRC has recommended reduced disposal injection volumes within these areas. We modify our disposal practices to remain consistent with the RRC’s guidance.

Conventional

Our diverse operated conventional asset portfolio includes Alaska’s Kuparuk and Alpine fields and the Permian Basin in the U.S.

Water management for our Alaska operations is unique, as most of our fresh water use is not directly for natural gas and oil production, but primarily to build seasonal ice roads and pads for exploration and overland resupply. The water is sourced locally from surface water bodies in accordance with regulatory permits and returned to the environment every spring as meltwater. Less than 1% of total water use is fresh water for drilling to produce natural gas and oil. For enhanced oil recovery (EOR) operations, our Alaska assets rely on non-fresh water, specifically seawater, and reused produced water.

For our conventional assets in the Permian Basin we are reusing produced water for EOR. Fresh water is primarily used for operational activities that require wash water and for processing and drilling (such as for water-based drilling mud).

LNG Facilities

Water management priorities for our Australia-Pacific LNG (APLNG) facility focus on the quality of water discharged to municipal water treatment systems or directed to the receiving environment. This includes water used in the liquified natural gas (LNG) process and runoff from rain events that is discharged to surface water. Routine monitoring programs are in place to assess water quality prior to discharge to municipal systems, at each stormwater discharge point, and inside and outside the discharge mixing zone in the receiving environment. In 2021, we implemented projects to reduce fresh water use at the APLNG facility by approximately 25%. Read more about our water management at APLNG.

Oil Sands

In Canada, steam-assisted bitumen recovery at our Surmont oil sands operation is primarily supported by recycled produced water with supplements from a mix of groundwater supply wells classified as low-quality non-saline and saline by Alberta regulators. These impaired quality water supplies are not suitable for domestic or agricultural use with standard treatment technologies and are located at sufficient depth to be isolated from surface water and interactions with aquatic ecosystems. Water management priorities for Surmont include maximizing the efficiency of the water cycle and reducing the steam-oil ratio associated with bitumen production.

As a founding member of Canada’s Oil Sands Innovation Alliance (COSIA) we are committed to the in-situ oil sands performance goal to reduce fresh water use intensity by 50%, from a 2012 benchmark, by 2022. To date, the fresh water use intensity has been reduced by about 47% collectively by COSIA companies.

Offshore

Water management priorities for our Norway offshore operations are treatment and quality of discharged produced water. Norway operations treat produced water prior to discharge from offshore platforms in accordance with national regulations. Fresh water for offshore operations is mostly used for domestic purposes, but also for well stimulation. Fresh water is used at the Teesside terminal, UK, which receives natural gas, oil or natural gas liquids from Norway and UK offshore fields. Norway is our largest user of non-fresh water (seawater) for drilling and EOR. 

Our Ekofisk operations have a long history of improving the quality of water discharged into the sea and our oil-in-water ratio has declined significantly and continues to out-perform regulatory requirements. In the last decade, the focus has been on optimization to further reduce oil-in-water concentrations. In 2021, the concentration averaged 5.7 mg/L, close to our 2020 record low of 5.1 mg/L. This is less than one fifth of the regulatory limit of 30 mg/L. Our ambition is to maintain these low oil-in-water ratios.

Efficient water treatment to reduce oil-in-water concentrations also reduces the level of other discharged components that may impact the marine environment. Potential impacts from produced water being discharged into the sea have been monitored and assessed for more than 20 years, including in situ water column monitoring. Based on current knowledge, the environmental risk of discharging produced water is very low. In 2021, we completed a field survey for in situ water column monitoring in the Greater Ekofisk area to try to verify the risk level.

Integrating Technology

We rely on finding innovative solutions through technology applications to reduce business risks and address local community concerns around water resources, treatment and management of produced water. Offshore, we treat produced water to remove dispersed oil prior to discharge, we disinfect seawater used for enhanced oil recovery (EOR) and we remove dissolved solids in water to avoid the buildup of scale. Onshore, we treat produced water or process water to remove certain organics, dissolved solids and dissolved gases like hydrogen sulfide (H₂S) to avoid the buildup of scale and to enable storage, recycling, discharge, or disposal. Innovative water technologies can optimize processes, reduce costs, improve efficiency and reduce potential impact on the environment.

ConocoPhillips’ Global Water Sustainability Center

2021 was the 11^th year for our Global Water Sustainability Center (GWSC) in Qatar. The center develops innovative solutions for water management related to natural gas and oil operations and programs with three main focus areas: providing specialized technical engineering and analytical support to our global operations and to Qatargas, conducting applied research to qualify advanced technologies for operations, and organizing outreach activities related to water sustainability. The GWSC manages our Water Solutions Technology Toolbox, an internal technology-sharing website capturing the latest water treatment experience from full-scale operations, field trials and bench tests.

Read more about the GWSC.

In 2021, the GWSC team participated in the “Go-Green” Sustainability Outreach campaign organized by the Qatargas Environmental team. The campaign focused on knowledge sharing of water conservation and climate change challenges with Qatar Foundation schools and university students. Research and technology-related efforts included evaluating novel pressure retarded osmosis technology for green energy production from saline produced water and assessing a low fouling nanostructured membrane for oily waste water treatment. In support of global operations, GWSC provided advanced investigative laboratory analysis to Qatargas to address operational challenges and engaged in monitoring field chemical residuals in hydrocarbon production pipelines for Norway assets.  

Learn more about how GWSC supports Research & Technology, Capital Projects, Global Operations, and Sustainability Outreach.