Water management

in shale oil and gas

IPIECA awareness briefing

Water
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Water management
in shale oil and gas
IPIECA awareness briefing

The global oil and gas industry association for environmental and social issues
14th Floor, City Tower, 40 Basinghall Street, London EC2V 5DE, United Kingdom
Telephone: +44 (0)20 7633 2388 E-mail: info@ipieca.org Website: www.ipieca.org
Introduction
Access to energy and clean water are fundamental for
maintaining human health and livelihoods, and for Oil and gas from shale
fostering economic development. For oil and gas
operations, balancing access to energy and the Shale is a sedimentary rock that can contain oil and gas
protection of water resources can be complex, and are that is difficult to extract using conventional methods.
therefore a priority for the sector. Horizontal drilling and hydraulic fracturing are used to
access and recover the oil and gas from these tight rock
This awareness briefing provides an overview of water
formations.2 These techniques provide a pathway for fluids
management in the onshore development and
to be pumped into the well under pressure to create
production of oil and gas from shale, communicates
fractures which act as pathways for oil and gas to flow to
industry practices, and directs readers to additional
the surface. Further information can be found on the
resources to learn more. In recent years, advances in
FracFocus website3 and in the Royal Academy of
horizontal drilling and hydraulic fracturing have
contributed towards a rapid increase in the development Engineering report on shale gas extraction.4
and production of oil and gas from shale.1 With this rapid
increase, concerns have been raised regarding potential
risks to water quality and quantity. IPIECA recognizes the
need for effective water management in oil and gas from The United States has been a leader in the development
shale development and production. It should be noted and production of oil and gas from shale and other types
that although this awareness briefing specifically of tight rock, and the research and policy on protecting
addresses shale, these practices also apply when using water resources associated with this could provide lessons
unconventional methods (hydraulic fracturing and learned for other countries and regions that may hold
horizontal drilling) in other types of tight rock formations. similar opportunities .5

l Shale oil and gas uses many similar processes to conventional oil and gas development and production (see the US
Department of Energy website6). In turn, the approaches taken during water management are also very similar.

l Water is key in the hydraulic fracturing process. Following fracturing, some water may flow back to the surface as ‘recovered
water’, which can be treated and recycled or reused. Advances by industry have improved the freshwater footprint of oil and
gas development and production from shale.7

l Hydraulic fracturing water-use intensity (water use normalized to gas and oil energy content) and produced water intensity
(volume of produced water per energy content) are lower than other energy extraction methods.8

l IOGP/IPIECA has developed good practice guidelines so that shale oil and gas operations can be conducted safely in a manner
that protects groundwater resources that are relied on as drinking water aquifers.9

l IPIECA has developed tools and good practice guidance to aid companies in effectively, efficiently and responsibly managing
water use in all oil and gas operations.

2 — Water management in shale oil and gas

Water in the operational life cycle
WATER INPUTS AND OUTPUTS
Water is both an input to, and a byproduct (output) of,
the development and production of oil and gas from
shale, as can be seen in Figure 1. The largest
requirement for water input within the operational life
cycle occurs during the completion phase when
hydraulic fracturing takes place. This time period is
short—generally two to four weeks for one well. In
contrast to the short time over which water is needed,
recovered water may continue to be generated
throughout the 5– to 30–year expected lifetime of a well.
fractures in the rock. To recover more resources from a
single well, lateral well lengths may need to be increased.
To accommodate this, water requirements will vary.
Depending on the geology, a portion of the hydraulic
fracturing fluid may remain in the rock formation and not
be recovered. Otherwise the fluid flows back to the
surface along with the oil and gas where it is collected
(see box on recovered water, below).

The volume of water required is generally driven by the

reservoir characteristics and well design. When using a
water-based drilling fluid, during the drilling phase, water
is mixed with chemicals to create a mud that is used to
maintain well pressures, cool the drill bit and circulate drill
cuttings to the surface. This drilling fluid is then treated
prior to recycling, disposal or reuse in other wells. Once
the well has been drilled, the rock is hydraulically
fractured to stimulate reservoir production. During
hydraulic fracturing, fluid (normally water with added
proppant and chemicals—see page 6) is pumped at high
pressure into the target formation, creating small
Recovered water10
Water recovered from the production well is a portion of
injected water that flows back in the first days/weeks and
water that occurs naturally in the formation (produced
water). The quantity of recovered water is dependent on the
amount of water that returns from the fracturing process
(which can vary greatly between wells and reservoirs, from
10–100% of the volumes used in fracturing the well), and on
the amount of formation water further produced.

Figure 1 Overview of the operational use of water in the development and production of oil and gas from shale
Source: adapted from Energy Water Initiative (2015)7

residuals
to disposal

evaporation recycled treatment

water
third-party
beneficial use

sourcing storage and drilling

transportation

evaporation
form of water
hydraulic fracturing/ production storage and
completion transportation life cycle stage
of recovered
water product
disposal
movement
of water
natural gas, life cycle
formation recovered natural gas liquids, recovered process
loss water oil water

3 — Water management in shale oil and gas

Water in the operational life cycle

SOURCES OF WATER
Water sources used by the industry for drilling and Water management can be further enhanced by
hydraulic fracturing typically fall into three categories: considering the ANSI/API Recommended Practices12 for
1) fresh water; 2) recovered water; and 3) alternative the planning and operation of wells, including those that
water sources generally not usable by the public are hydraulically fractured. Recommendations are given
(brackish or saline groundwater, seawater or reclaimed for baseline groundwater monitoring and general source
non-potable waste/industrial water). Choosing the most water management, for transportation of materials and
appropriate water source depends on a variety of factors equipment, and for storage and management of fluids
such as volume, availability, quality, competing water and chemicals.
uses, transportation requirements, storage capacities,
technical needs, economics and regulatory
requirements. The IPIECA guidance, Identifying and
assessing water sources,11 presents a systematic process
for the onshore oil and gas industry to select water
sources that best meet project needs within the broader
context of local or regional water management. The
American National Standards Institute (ANSI)/American
Petroleum Institute (API) Recommended Practice
100-212 provides further information on creating a water
source management plan.

MANAGING WATER DEMAND

While the overall water use for shale oil and gas operations
is quite low compared to other users,13 including other
energy users,14 it can be significant at the local level. In
particular, this may occur in areas that are arid or under
high to extremely high levels of water stress where other
water users such as agriculture may have competing water
requirements.15 To help reduce demand on freshwater
resources at a local scale, the oil and gas industry has
improved fracturing chemistry and treatment technologies
to enable the use of alternative water sources such as
recovered and brackish water.16 Demonstrably, a study by
US researchers found that hydraulic fracturing accounted
for less than 1% of total industrial water use and only 0.04%
of the total freshwater use per year in the United States.13

Recovered water is separated from the oil or gas and is

either treated and reused in the operation or disposed of.
Factors which will influence how much water is recycled
and reused rather than disposed of will include: whether
the water can be treated; the water needs of the
operation over a given time period; source water
withdrawal limitations; and economics.

4 — Water management in shale oil and gas

Protecting water quality
WELL CONSTRUCTION AND INTEGRITY
Proper design and construction of an oil and gas well is
critical to the protection of water resources. As illustrated
by Figure 2, protective measures include multiple layers
of steel casing and cement that separate the well from
the aquifer (if one is present) and also serve to isolate
production streams within the centre of the well. In
particular, the surface casing pipe is cemented in place
to isolate the aquifer from the well bore. This is not only
a sound operating practice but also a regulatory
requirement17 in many countries and for any type of
onshore oil and gas development, whether conventional
or not. The ANSI/API Recommended Practice 100-118
describes standards for design, construction and
integrity assurance, and guidance is also available for
other countries.19,20,21
Figure 2
Example of a cross-section of
well construction and distances
Source: adapted from IOGP (2014)23
2000Ð5000 m
100
0Ð3
000
m
5 — Water management in shale oil and gas
Industry practices include regular testing of the casing
and cement to ensure that they do not create a pathway
for oil and gas to enter the groundwater. In addition,
hydraulic fracturing completions are closely monitored
and managed to ensure that pressures do not exceed
well design parameters. Moreover, shallow overlying
aquifers tend to occur in the upper 100–200 m of the
saturated zone.22 These aquifers are separated from the
fractures which occur deep underground by layered
sedimentary rock, creating a natural barrier which water,
gas and additives do not propagate.
These well construction practices are implemented to
minimize the potential exposure pathways to humans
and ecosystems.
aquifer
conductor casing
surface casing
intermediate casing
production casing
QUADRUPLE CASING
Layers of steel encased in
cement protect groundwater
Protecting water quality

FRACTURING FLUIDS
Hydraulic fracturing fluid is a blend of a base fluid (normally l in the United States and Canada at FracFocus.org25 and
water), proppant and other additives that is expressly FracFocus.ca;26
designed to create the fractures and hold the formation l for specific states in the United States at the Interstate
open. As illustrated in Figure 3, the fracturing fluid is Oil & Gas Compact Commissions (IOGCC) website;27 and
approximately 99% water with other additives making up
l in Europe at NGSFacts.org as well as under the
around 1% of the fluid (the water often contains some
European Union REACH regulations28 which were
percentage of sand). These additives are regularly used in
adopted to improve the protection of human health
other industries, have a number of common applications24
and the environment from the risks that can be posed
and have well-documented characteristics. Increasingly, the
by chemicals.
nature and quantities of fracturing fluids are publicly
disclosed, for example:

Figure 3
Average hydraulic fracturing fluid composition (based on US operation, August 2012)
Source: adapted from https://fracfocus.org/water-protection/drilling-usage

corrosion friction
acid inhibitor reducer
0.07% 0.05% 0.05% clay control
0.034%
crosslinker
0.032%
scale inhibitor
0.023%
breaker
0.02%

other iron control

water 0.8% 0.004%
99.2% biocide
0.001%

gellant
0.5%

6 — Water management in shale oil and gas

Protecting water quality

STORAGE AND SPILL CONTAINMENT

Prevention of leakage, spills and contaminated run-off
from operations is also important to protect ground and
surface water. Recommended industry practices29,30 can
be used to prevent stormwater from becoming
contaminated and any spills from leaving the work area.
In the United States, the development of a Spill
Prevention, Control and Countermeasure (SPCC) Plan is
required to prevent spills of oil to navigable waters.
Certain construction activities can also require a
Stormwater Pollution Prevention Plan when regulated
under a permit. Regardless of regulatory requirements,
ANSI/API Recommended Practice 100-2 provides
guidance on stormwater management and spill
prevention practices. In the EU, practices will vary between
countries depending on how they have implemented the
specific requirements that are laid out in the EU Water
Framework Directive31 and, in the UK, the Integrated
Pollution Prevention and Control Directive (IPPC).32
Regulations in many jurisdictions have established
minimum setback or buffer requirements between well
pads and water bodies or other receptors that could be
negatively impacted. Large tanks or man-made ponds are
used to store source water, including fresh, brackish and
recovered water. The US Energy Water Initiative describes
strategies being employed to prevent shallow
groundwater impacts from recovered water storage,
including double-lined containment (which provides a
line of defence in case of the failure of primary
containment), water level monitoring and leak
detection.33

In closing
IPIECA members recognize the growing pressures on water resources worldwide on both a global and local
scale. The identification of water quantity and quality issues provides risks and opportunities for the oil and
gas sector going forward as an industry where water is an integral and essential element in most operations.34

Accordingly, IPIECA and other industry groups have developed multiple tools and guidance documents for
the industry to use as resources to assist in planning, implementation, evaluation and management of water.
The resources mentioned throughout this document and those listed in the Further reading section (see
pages 8–9) will assist readers in obtaining further detailed information on the management of water in shale
oil and gas operations.

7 — Water management in shale oil and gas

References
1 IOGP (2014). Shale gas & hydraulic fracturing: ensuring a safe, clean, secure & competitive energy source for Europe.
www.iogp.org/blog/2014/08/14/faqs-on-shale-gas; and
IOGP (2014). Shale gas in Europe. IOGP position paper. www.iogp.org/blog/2014/11/13/shale-gas-in-europe-position-paper
2 API (website). Hydraulic Fracturing: Safe Oil and Natural Gas Extraction (video). www.api.org/oil-and-natural-gas/wells-to-
consumer/exploration-and-production/hydraulic-fracturing/fracking-safe-oil-gas-extraction
3 FracFocus (website). Hydraulic Fracturing: How it Works? http://fracfocus.org/hydraulic-fracturing-process.
4 Royal Academy of Engineering (2012). Shale Gas Extraction in the UK: A review of hydraulic fracturing.
www.raeng.org.uk/publications/reports/shale-gas-extraction-in-the-uk
5 EIA (2013). Analysis & Projections: World shale Resource Assessments. US Energy Information Administration
www.eia.gov/analysis/studies/worldshalegas
6 Energy.gov (website). http://energy.gov/fe/shale-gas-101
7 EWI (2015). U.S. Onshore Unconventional Exploration and Production Water Management Case Studies. Energy Water Initiative, USA.
http://www.devonenergy.com/documents/Energy_Water_Initiative_Case_Studies.pdf
8 Kondash, A. and Vengosh, A. (2015). ‘Water Footprint of Hydraulic Fracturing’. In Environmental Science and Technology Letters, Vol. 2,
No. 10, pp. 276–80. http://pubs.acs.org/doi/full/10.1021/acs.estlett.5b00211
9 IOGP/IPIECA (2013). Good practice guidelines for the development of shale oil and gas. IOGP report 489.
www.ipieca.org/resources/good-practice/ogp-ipieca-good-practice-guidelines-for-the-development-of-shale-oil-and-gas
10 IOGP/ERM (2014). Recovered Water Management Study in Shale Wells. www.iogp.org/blog/2014/07/16/recovered-water-
management-study-in-shale-wells
11 IPIECA (2014). Identifying and assessing water sources. www.ipieca.org/publication/identifying-and-assessing-water-sources
12 ANSI/API (2015a). Managing Environmental Aspects Associated with Exploration and Production Operations Including Hydraulic
Fracturing. ANSI/API Recommended Practice 100-2, First Edition, August 2015). www.api.org/~/media/files/policy/exploration/100-
2_e1.pdf
13 Kondash, A. and Vengosh, A. (2015). ‘Water Footprint of Hydraulic Fracturing’. In Environmental Science and Technology Letters, Vol. 2,
No. 10, pp. 276–80. http://pubs.acs.org/doi/full/10.1021/acs.estlett.5b00211
14 IEA (2016). World Energy Outlook 2016. Chapter 9. https://www.iea.org/newsroom/news/2016/november/world-energy-outlook-
2016.html
15 WRI (2014). Global Shale Gas Development: Water Availability and Business Risks. World Resources Institute.
www.wri.org/publication/global-shale-gas-development-water-availability-business-risks#
16 EWI (2015). U.S. Onshore Unconventional Exploration and Production Water Management Case Studies. Energy Water Initiative, USA.
https://www.anadarko.com/content/documents/apc/Responsibility/EWI_Case_Studies_Report.pdf
17 API (website). Well integrity and fracture containment. (Overview of ANSI/API Recommended Practice 100-1). www.api.org/oil-and-
natural-gas/wells-to-consumer/exploration-and-production/hydraulic-fracturing/well-integrity-fracture-containment
18 ANSI/API (2015b). Hydraulic Fracturing—Well integrity and fracture containment. ANSI/API Recommended Practice 100-1, First Edition,
October 2015. http://www.api.org/~/media/Files/Policy/Exploration/100-1_e1.pdf.
19 Norsok Standard D-010: Well integrity in drilling and well operations.
Rev. 4, 2013: www.standard.no/en/sectors/energi-og-klima/petroleum/norsok-standard-categories/d-drilling/d-0104
Rev. 4, 2012: www.standard.no/Global/PDF/Petroleum/D-010%20mini%20enquiry/9.%20Plug%20and%20Abandonment%
20(15.8.12)_revisjon%20til%20eksisterende.pdf
Rev. 3, 2004: www.standard.no/pagefiles/1315/d-010r3.pdf
20 ISO/FDIS Standard 16530-1. Petroleum and natural gas industries–Well Integrity–Part 1: Life cycle governance
www.iso.org/iso/home/store/catalogue_tc/catalogue_detail.htm?csnumber=63192
21 ISO/TS Standard 16530-2:2014. Well integrity–Part 2: Well integrity for the operational phase.
www.iso.org/iso/catalogue_detail.htm?csnumber=57056
22 UK Groundwater Forum. The aquifers of the UK. www.groundwateruk.org/downloads/the_aquifers_of_the_uk.pdf
23 IOGP (2014). Shale gas & hydraulic fracturing: ensuring a safe, clean, secure & competitive energy source for Europe.
www.iogp.org/wp-content/uploads/2016/10/v2_Shale_FAQs_1.2_high.pdf
24 GWPC (2009). Modern Shale Gas Development in the United States: A Primer. Report prepared for the U.S. Department of Energy by the Ground
Water Protection Council, Oklahoma City, USA. www.gwpc.org/sites/default/files/Shale%20Gas%20Primer%202009.pdf

8 — Water management in shale oil and gas

25 FracFocus (USA) (website). http://fracfocus.org
26 FracFocus (Canada) (website). http://fracfocus.ca
27 Interstate Oil and Gas Compact Commission (website). http://iogcc.publishpath.com
28 European Chemicals Agency (website). http://echa.europa.eu/regulations/reach
29 API (2011). Practices for Mitigating Surface Impacts Associated with Hydraulic Fracturing. API Guidance Document HF3, First Edition,
January 2011. American Petroleum Institute, Washington DC. www.techstreet.com/api/standards/api-hf3?product_id=1766366
30 API (2009). Environmental Protection for Onshore Oil and Gas Production Operations and Leases. API Recommended Practice 51R, First
Edition, July 2009. American Petroleum Institute, Washington DC. www.api.org/oil-and-natural-gas/wells-to-consumer/exploration-and-
production/hydraulic-fracturing/rp-51r-environmental-protection
31 EU Water Framework Directive (2000). http://ec.europa.eu/environment/water/water-framework/index_en.html
32 DEFRA (2010). Environmental Permitting Guidance: The IPPC (Integrated Pollution Prevention and Control) Directive. Version 3.0, March
2010. www.gov.uk/government/uploads/system/uploads/attachment_data/file/69319/pb13634-ep2010ippc.pdf
33 EWI (2015). U.S. Onshore Unconventional Exploration and Production Water Management Case studies. Energy Water Initiative, USA.
https://www.anadarko.com/content/documents/apc/Responsibility/EWI_Case_Studies_Report.pdf
34 UNEP (2013). GEO-5 for Business: Impacts of a Changing Environment on the Corporate Sector. United Nations Environment
Programme, Nairobi, Kenya. http://reliefweb.int/report/world/geo-5-business-impacts-changing-environment-corporate-sector

Further reading
API (website). ‘Oil shale’. www.api.org/oil-and-natural-gas/wells-to-consumer/exploration-and-production/oil-shale

ANSI/API (2014). Community Engagement Guidelines. ANSI/API Bulletin 100-3, First edition, July 2014.
www.api.org/~/media/files/policy/exploration/100-3_e1.pdf

API (2016). Hydraulic Fracturing: Unlocking America’s Natural Gas Resources. www.api.org/~/media/Files/Oil-and-Natural-Gas/Hydraulic-
Fracturing-primer/Hydraulic-Fracturing-Primer.pdf

GEMI (2016). GEMI® Local Water ToolTM (LWT).

http://gemi.org/localwatertool/?utm_source=All+IPIECA+MEMBERS&utm_campaign=8ba399282b-
GWT_update10_28_2015&utm_medium=email&utm_term=0_94d8a421aa-8ba399282b-

IPIECA (2013). The IPIECA Water Management Framework for onshore oil and gas activities.
www.ipieca.org/resources/good-practice/the-ipieca-water-management-framework

IPIECA (2014). Review of water risk tools. www.ipieca.org/resources/good-practice/review-of-water-risk-tools-guidance-document-for-

the-oil-and-gas-industry

IPIECA (2014). Efficiency in water use. www.ipieca.org/resources/good-practice/efficiency-in-water-use-guidance-document-for-the-

upstream-onshore-oil-and-gas-industry

IPIECA (2015). Oil and gas industry guidance on voluntary sustainability reporting. Third edition. IOGP Report 437.
www.ipieca.org/resources/good-practice/oil-and-gas-industry-guidance-on-voluntary-sustainability-reporting-3rd-edition

IPIECA (2015). Global Water Tool (GWT) for Oil and Gas. A customized version of the free and easy-to-use World Business Council for
Sustainable Development (WBCSD) Global Water Tool. www.ipieca.org/news/global-water-tool-for-oil-and-gas-2015-update

IPIECA (2016). E-learning course on water risk assessment tools. http://wra.ipieca.org

UK Environment Agency www.gov.uk/government/organisations/environment-agency

UNEP www.unep.org

US EPA https://www.epa.gov

US Geological Survey http://www.usgs.gov

9 — Water management in shale oil and gas

© IPIECA 2017