Deloitte report sees crucial energy role for water management

Water management will play an increasingly crucial role in energy globally as well as in the US, experts at Deloitte LLP’s 2012 Washington area energy conference forecast on May 21. Their assessments came as the financial services firm released a report, “No water, no energy. No energy, no water.”, as the conference got under way at National Harbor outside Washington, DC.

Businesses and governments accustomed to competing for energy are less experienced in competing for fresh water, another vital resource, the report indicated. “It takes vast amounts of water to extract, process, and produce many forms of energy, and it takes vast amounts of energy to extract, transport, and treat water…. A constraint in either resource limits the other, and this nexus of supply and demand poses substantial risks for virtually every government and every type of business,” it said.

Agriculture is the world’s No. 1 water user, but energy is close behind, according to John McCue, Deloitte LLP’s vice-chairman and its energy and resources leader. “It’s a future issue for the energy industry, getting water where it’s needed and at the right cost, and using it in a way that lets it be reused and protects drinking water supplies,” he told reporters at a luncheon.

Water-scarce countries already manage it most aggressively, observed Joe Stanislaw, a Deloitte independent senior advisor on energy and sustainability and co-author of the report with William Sarni, enterprise water strategy practice leader at Deloitte Consulting. “If we want to keep our high standard of living, we need to start managing our water as aggressively as we’re managing energy,” Stanislaw said.

Conservation gains

Deloitte’s Center for Energy Solutions said in a separate report that individual consumers as well as businesses are trying hard to use less electricity as the US economy recovers. “Companies are making significant energy-efficiency progress, reporting that they have achieved about 60% of their targets for energy savings when it comes to electricity, natural gas, carbon footprint, and transport fleets,” said Marlene Motyka, the firm’s US alternative energy leader. Businesses hope to reduce their energy use another 25% in the next 4 years so they can keep their competitive edge, she added.

As he addressed the conference’s general session, BASF Corp. Chief Executive Hans Ulrich-Engel said the current global energy consumption rate can’t be sustained. Industries are emphasizing energy efficiency because major problems will occur by 2050 if something isn’t done, he forecast.

Water management also is becoming more crucial, Deloitte’s new report said. Globally, controlling watersheds could determine where and how much oil and gas is produced, Stanislaw told reporters. Russia is water-rich, with massive supplies in Lake Baikal and other large freshwater bodies, while China, with its significant tight oil and gas resource potential, is water-poor, he said.

Alberta oil sands producers already have cut their water use in half, he continued. “The same thing will happen with hydraulic fracturing,” Stanislaw said. “It costs money to bring water in—a gallon diesel per mile.”

Community outreach

He suggested that oil and gas producers have learned a lot about the importance of good community relations in the last 5 years. “Even in areas where water is plentiful, it’s also used for drinking,” Stanislaw said. “More producers are reaching out because local communities are concerned. They’re excited about the prospects, but concerned about possible drinking water supply risks. Groups like the Ohio Oil & Gas Association have responded by requiring more transparent information about fracing and production so the public can understand what’s going on.”

Many Ohioans are excited, maintained Greg Leveille, unconventional resources technology manager at ConocoPhillips Co., during a general session discussion with retired Chevron Corp. executive Peter J. Robertson who now is a Deloitte senior advisor on oil and gas. “For years, they’d been told they were part of the Rust Belt and in severe industrial decline,” Leveille said.

A Deloitte public survey found most people believe the benefits of producing oil and gas from tight shale formations outweigh the potential risks, Robertson said. “The industry may think it’s done a lot to explain the situation, but it’s clear that much of the public still doesn’t understand,” he said.

Leveille said one of the biggest misconceptions centers on gas migrating great vertical distances through fractures to drinking water supplies. “Ironically, we’re finding that it doesn’t migrate enough, and we have to drill more wells,” he noted.

Contact Nick Snow at nicks@pennwell.com.

Related Articles

PHMSA proposes pipeline accident notification regulations

07/02/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations. ...

BHI: US oil rig count rises for first time in 30 weeks

07/02/2015 A sudden 12-unit jump in oil-directed rigs during the abbreviated week ended July 2 represented their first rise since Dec. 5, 2014, and helped lif...

FourPoint Energy to acquire Anadarko basin assets from Chesapeake

07/02/2015 FourPoint Energy LLC, a privately owned Denver company, plans to acquire oil and gas assets from Chesapeake Energy Corp. subsidiaries Chesapeake Ex...

Puma Energy completes purchase of Murco’s UK refinery, terminals

07/02/2015 Singapore-based Puma Energy Group Pte. has completed its purchase of UK midstream and downstream assets from Murco Petroleum Ltd., a subsidiary of ...

BP to settle federal, state Deepwater Horizon claims for $18.7 billion

07/02/2015 BP Exploration & Production Inc. has agreed in principle to settle all federal and state claims arising from the 2010 Deepwater Horizon inciden...

MARKET WATCH: NYMEX oil prices plummet on crude inventory build, Iran deadline extension

07/02/2015 Oil prices plummeted more than $2/bbl July 1 to settle at a 2-month low on the New York market after a weekly government report showed the first ri...

API to issue recommended practice to address pipeline safety

07/01/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

Shell Midstream Partners takes interest in Poseidon oil pipeline

07/01/2015 Shell Midstream Partners LP has completed its acquisition of 36% equity interest in Poseidon Oil Pipeline Co. LLC from Equilon Enterprises LLC, a s...

MARKET WATCH: Oil prices decline as US crude inventories post first gain in 9 weeks

07/01/2015 Oil prices on July 1 surrendered much of their gains from the day before after the release of a government report showing the first rise in US crud...
White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts

On Demand

OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST


Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected