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NGL Energy Partners
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2020 IPAA Leaders in Industry Luncheon
| Trey Karlovich | Page 6 of 11 |
May 07, 2024
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"2020 IPAA Leaders in Industry Luncheon"
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1) During the process of drilling or fracking for oil and gas, fresh water is injected (along with other additives) into the hydrocarbon reservoir to increase pressure allowing the oil and gas to be pumped to the surface. • Estimates vary by region; however, fresh water needs can exceed 200k barrels per lateral mile per well. 2) The hydrocarbon reservoirs are also filled with salty water which gets pumped to the surface alongside the oil and gas. This water is known as “produced water” or brine. • Delaware Basin produces > 3 barrels of produced water per barrel of crude oil. 1) The water disposal business disposes of the flow back and produced water by injection into disposal wells which are wells drilled to specific porous underground formations (typically deeper than oil or gas producing wells) which have ample space for the water to disperse 2) NGL generates revenue by providing this disposal service to producers allowing them to continue their drilling or fracking plans 6 ? When an oil or natural gas well is hydraulically fractured, typically several million gallons of water (along with sand and other additives) are pumped into a hydrocarbon bearing rock formation deep in the ground. Some of this water will remain locked in the formation, but some will come back up through the well to the surface. The water is known as “flowback.” ? When oil or natural gas is produced, salty water is typically produced alongside it, which is known as “produced water” or brine. Flow back Water Ongoing Produced Water What is Salt Water Disposal?