Optimization models for impaired water management in active shale gas development areas

In this work we present a mixed-integer linear programming model to support upstream operators in identifying optimal strategies for impaired water management in active shale gas development areas. The proposed model is designed to coordinate three key development decisions such that the net present value is maximized: a) the fracturing schedule, b) the water supply sourcing and distribution strategy, and c) the selection of appropriate water storage solutions. We specifically allow return-to-pad operations in the fracturing schedule and we assume that water blending ratios for fracturing jobs are unrestricted, i.e., companies may use only impaired water to meet the completions water demand. Moreover, we explicitly consider the sizing and timing of water storage solutions. By applying the optimization model to a real-world case study, we find that impaired water disposal volumes can be reduced drastically if operators manage to coordinate their fracturing schedule with impaired water availability.