Exploration and production companies (E&Ps) in shale basins have a water problem — in fact, they have three water problems. Two are upfront well-completion costs: sourcing water for the frac job and disposal of the flowback water from the frac job. These are nontrivial issues, but they pale in comparison to a much bigger problem – produced water – the water that always comes along with the oil and natural gas out of a well. It is a lot of water; on average in the U.S., somewhere around five to six barrels of water are produced for every barrel of oil that comes out of the ground, more from some basins than others. The Permian, for example, produces six to eight barrels of water per barrel of crude. That’s over 1,000 Olympic-size swimming pools full of water out of the Permian alone each day. And because this water is chock-full of minerals, petroleum residue and especially salt (which makes it brine), producers must dispose of the water in a safe, environmentally responsible manner. They are doing that today. But what happens if Permian production doubles — a distinct possibility. Today we continue our surfing-themed series on the effect of sand and water costs on producer economics with a focus on produced water in the U.S.’s hottest shale play.
Figure 1. Olympic-Size Swimming Pool
So far in this blog series we’ve focused on the costs associated with frac sand. In Part 1, we discussed how the trend toward much longer laterals and high-intensity well completions have significantly increased the volume of frac sand being used, with some individual well completions using enough sand to fill 100 railcars or more. In Part 2, we discussed the evolution of frac sand use, including shifts in the types of sand that are preferred and in the volume of sand being used in each type of well. Then we considered sand logistics — which, given that the most in-demand frac sand is mined in the Upper Midwest (Wisconsin, Illinois, Minnesota), account for a significant share of total sand costs — and laid out the challenges that producers face in securing the sand they need while minimizing costs. In Part 3, we zeroed in on recent trends in frac sand demand and pricing, and on the development of regional frac sand mines to help hold down transportation costs. We also put rising frac sand costs into an economic context, concluding that while those costs are a concern, they are usually outweighed by the oil-and-gas production gains (and resulting higher revenues) that result from using more sand.
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About the song
"Wipe Out" was written by Bob Berryhill, Pat Connolly, Jim Fuller and Ron Wilson (The Surfaris), and is the first cut on side one of The Surfaris' album of the same name. The band wrote the song on the spot in the studio for the B side of the single, "Surfer Joe." All of The Surfaris were in their mid-teens when they wrote “Wipe Out.” It is based on the same format as Preston Epp's 1959 hit, "Bongo Rock." Featuring an infectious drum beat throughout the song, the tune begins with a reverb-drenched sound of a board breaking, intended to sound like a surfboard breaking in two. This is followed by a manic voice saying, "Ha, ha, ha, ha, ha ... wipe out!" The Surfaris' manager, Dale Smallin, provided the recitation intro. Initially released in January 1963 on the independent label, DFS, then released again in February 1963 on the Princess label, the song became a hit after it was picked up for national distribution by Dot Records in April 1963. Dot quickly followed up with an album centered around "Wipe Out." The single went to #2 on the Billboard Hot 100 Singles chart. Personnel on the record were: Bob Berryhill (rhythm guitar), Jim Fuller (lead guitar), Pat Connolly (bass), Ron Wilson (drums) and Dale Smallin (recitation).
The Wipe Out LP, including its title track, was recorded at Pal Recording Studio in Cucamonga (now named Rancho Cucamonga), CA. During the recording, The Surfaris added saxophonist Jim Pash to the band. Richard Delvy produced the sessions. Delvy was a pioneer in the surf music scene, starting out as the drummer for The Bel-Airs, before going on to become a composer, arranger, music publisher, manager and record producer.
The Surfaris were an American surf rock band formed in Glendora, CA, in 1962. They are known for the hit records "Surfer Joe" and "Wipe Out,” which were the A and B sides of the same single. They have released nine studio albums and seven singles. "Wipe Out" has appeared on various compilation albums, and is featured in several television shows and movies. Original band member Bob Berryhill still occasionally performs with a band called The Surfaris. Pat Connolly left the music business in 1965. Ron Wilson died in 1989, followed by Jim Pash in 2005 and Jim Fuller in 2017.
Comments
I enjoyed your Wipe Out article today. I am the founder and CEO of Fairmont Brine Processing in Fairmont, WV. We have developed a multiple effect evaporation and crystalization process that treats the produced water into sodium and calcium chlorides. We have been in operation for three years as the first ever to do this. Depending on the size of the plant, fresh water need, and salt logistics, we are able to get the produced water treatment fee down to under $3.00/bbl. We beleive we have the solution and are looking to build many more plants currently throughout the Marcellus and other basins. www.fairmontbrine.com. Our only waste product is a magnesium hydroxide sludge with some barite. This goes to landfill.