Underground Injection Issues for Investors
The Saltwater Disposal Institute (SWDI) specializes in economical, safe management of Oil and Gas wastes, primarily waste water via deep-well injection. We will publish this blog on a weekly basis to shed light on regulatory trends, industry responses and implications for investors.
Deep-well
injection in the news: The
nation's media are packed with stories about Shale-Gas, in particular
hydro-fracturing of gas wells and deep disposal of frack-fluids into injection
wells. While both of these processes involve the deep emplacement of water,
there are significant differences that must be
understood by citizens and investors.
Æ Shale-Gas hydro-fracturing is a recent refinement of what has been a standard tool in the oil industry for at least 60 years when water and other chemicals are injected into underground reservoirs and flowed back to the surface in a matter of days, having cleaned and augmented the reservoir. The new massive, high-pressure efforts of recent years are a new development. Shale-gas reservoirs must be subjected high-pressure injection of massive quantities of water, chemicals, and propants; the injected fluids are flowed back to the surface over a number of months. In shale-gas formations, the methane molecules are contained in extremely small pores within the shale or are adsorbed onto the surface of minute shale particles - there is no gas reservoir without massive fracturing. Hydro-fracing is unlike traditional deep-well injection in that fluids are produced back to the surface in non-geologic time-scales (months or years). Hydro-fracing is currently not defined in regulations or statute as an Underground Injection Control (UIC) activity and as such faces lesser regulatory scrutiny than permitted injection/disposal wells. For the operator and investor, it is especially important to keep in mind that fracking is a usual and customary E&P activity that is allowed unless specifically prohibited by statute.
Æ Deep-well disposal of frac-fluid is a UIC permitted process that has been regulated for at least 30 years. Shale-gas development in recent years has changed the horizon by adding large volumes of fluids that need to be disposed of in a prudent manner - usually by deep injection. The presence of thousands of new shale-gas wells means that many millions of barrels of waste water must be disposed of over a short time-frame; this is a scenario fraught with problems for the industry. Some shale-gas theaters have had little oil and gas activity in the past and UIC infrastructure does not exist. Other theaters of development might have unforeseen geo-hazards including deep fractures that might extend toward fresh water aquifers or deep faulting that could be activated by loading. Oil and gas operators, investors, regulators, and nearby residents need to be vigilant for possible problems.
Æ Shale-Gas hydro-fracturing is a recent refinement of what has been a standard tool in the oil industry for at least 60 years when water and other chemicals are injected into underground reservoirs and flowed back to the surface in a matter of days, having cleaned and augmented the reservoir. The new massive, high-pressure efforts of recent years are a new development. Shale-gas reservoirs must be subjected high-pressure injection of massive quantities of water, chemicals, and propants; the injected fluids are flowed back to the surface over a number of months. In shale-gas formations, the methane molecules are contained in extremely small pores within the shale or are adsorbed onto the surface of minute shale particles - there is no gas reservoir without massive fracturing. Hydro-fracing is unlike traditional deep-well injection in that fluids are produced back to the surface in non-geologic time-scales (months or years). Hydro-fracing is currently not defined in regulations or statute as an Underground Injection Control (UIC) activity and as such faces lesser regulatory scrutiny than permitted injection/disposal wells. For the operator and investor, it is especially important to keep in mind that fracking is a usual and customary E&P activity that is allowed unless specifically prohibited by statute.
Æ Deep-well disposal of frac-fluid is a UIC permitted process that has been regulated for at least 30 years. Shale-gas development in recent years has changed the horizon by adding large volumes of fluids that need to be disposed of in a prudent manner - usually by deep injection. The presence of thousands of new shale-gas wells means that many millions of barrels of waste water must be disposed of over a short time-frame; this is a scenario fraught with problems for the industry. Some shale-gas theaters have had little oil and gas activity in the past and UIC infrastructure does not exist. Other theaters of development might have unforeseen geo-hazards including deep fractures that might extend toward fresh water aquifers or deep faulting that could be activated by loading. Oil and gas operators, investors, regulators, and nearby residents need to be vigilant for possible problems.
About the
author: Bruce G. Langhus, Ph.D. is a
petroleum geologist with over 45 years' experience in oil and gas business
including water-flood design and operation; Class I, II, and III disposal well
location, permitting and operation; and injection well remediation. Dr. Langhus has been the Class II Program
Manager in Oklahoma, the second largest UIC program in the country. He was a founding partner of ALL Consulting,
a successful geotechnical consultancy in Tulsa, OK.
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