Development of a Water Resource Management Plan for An Unconventional Play Discovery

The increased reliance on high volume hydraulic fracturing for the development of unconventional oil and gas plays requires exploration and production companies to develop innovative approaches to source and manage water resources. Apache Corporation’s discovery, exploration, and development of the Alpine High field in the Delaware Basin portion of the West Texas Permian Basin provides an example of one company’s approach to water resource management. In late 2015 and 2016, Apache initiate the drilling and completion of the initial discovery wells of what would eventually be known as the Alpine High field. The first wells were drilled and completed using fresh water purchased from local municipalities and water districts, produced water from these wells was trucked to commercial salt water disposal wells. In late 2016, Apache identified the potential scope of development in Alpine High and realized there was a need to transition to non-potable sources of water. By early 2017, Apache had consulted local water resource experts to identify non-potable aquifer systems that could serve as sources of groundwater. In addition to non-potable water, Apache dedicated capital to the construction of a midstream water infrastructure that would allow the company to develop an extensive water recycling program. By the middle of 2017, Apache had drilled three brackish water wells that produced up to 25,000 barrels per day and constructed over 2 million barrels of storage impoundment for both brackish groundwater and produced water. At the end of 2018, Apache has over 400,000 barrels per day of brackish water production capacity and over 8 million barrels of produced water storage that facilitated the company to transition from 100% fresh water sourcing and injection disposal in 2016, to over 90% nonpotable water sourcing and over 85% of produced water being recycled in 2018.