Managing the Impacts of CBM Development on Water
Nexen is a leader in coalbed methane (CBM) in Canada, with
a significant land position and commercially viable development
in the Mannville coals in Alberta. CBM is a form of natural gas
embedded in coal deposits. To produce the gas, we first have to
pump out the brackish (saline) water in the seams to reduce
pressure. This process can generate large volumes of saline,
non-potable water.
We take special precautions to avoid contamination of fresh water
aquifers and wells. All produced water is reinjected into deep
subsurface locations – up to 10 times deeper than residential and
farm wells, and substantially below the coal zones where the water
originated. We also measure local water quality before we begin
operations to establish baseline groundwater quality.
- Minimizing Fresh Water Use in Long Lake Oil Sands Project
Water is a necessary element for developing bitumen into
synthetic crude oil. At Long Lake, we inject steam underground
to soften the bitumen before it is collected in gathering wells. One
of the advantages of our in-situ development process is that it
requires less water than a traditional oil sands mining operation.
According to a 2004 estimate by the Alberta Energy Utilities
Board, a traditional oil sands mining operation requires 4.0
barrels of water to produce one barrel of synthetic crude oil. At
Long Lake, we use approximately 1.5 barrels of water to produce
one barrel of our premium synthetic crude oil. Long Lake’s source
water is gathered from both fresh and brackish (saline) water
wells as opposed to river water. We are committed to recycling
more than 90% of the produced water we recover with our
bitumen production.
- Delays in Yemen Water and Sanitation Project
As a partnership project through the United Nations Global
Compact initiative, we have been working in Yemen for the last
few years on implementing a community water and sanitation
project, centered on a small village (Ressib) immediately adjacent to our Masila operations. The needs are great for improved
delivery of better quality and greater quantities of potable water,
as well as improved waste management practices. The project is
significantly behind schedule due to personnel and project
management issues as well as difficulties in obtaining community
buy-in to the underlying objective of long-term sustainability. We
remain committed to achieving the main project goals and are
working with project partners and the local community toward
building the capacity that will be necessary to sustain the project
going forward.
- Reducing Sea Bed Impacts While Removing Well Heads
Nexen UK has helped develop a new system for removing old
well heads from the sea bed. Traditionally, explosives were used
to sever the well pipe some 10 feet below the sea bed; this
method can impact marine life and spread debris across the
sea floor. The new approach – carried out in partnership with
drilling and production service provider Weatherford International
– uses a mechanical cutter spinning inside the well pipe to slice
through the well head from the inside out. In 2006, five Nexenoperated
well heads were disposed of in this way, with more planned for 2007. This process reduces environmental impacts
as well as costs, since the approach can be conducted from a
service ship instead of a rig-based operation.
- Environmental Fine Levied in US
In April 2005, a former employee of Nexen USA made allegations
that, during the course of his employment, he dumped skimmer
and other materials overboard while working on two platforms
in the Gulf of Mexico. A comprehensive internal review was
conducted to investigate the allegations. In May 2005, Nexen
self-reported the incident to the Environmental Protection Agency
and later provided the results of our internal investigation
including steps taken to prevent such violations from occurring
in the future. In 2007, the EPA accepted our findings and we
were subject to a fine of approximately US$46,000 (the minimum
fine allowed).
- SERPENT Project Update
In 2006, Nexen began the first year of its commitment to the
SERPENT project in the North Sea. We are providing funding of
£60,000 (Cdn $120,000) over three years to this worldwide
project. SERPENT - which stands for ‘scientific and
environmental ROV (remote operated vehicle) partnership using
existing industrial technology’ - is a collaborative program
between scientific institutions and oil and gas companies to study
the impact of oil-producing platforms on sea life. Studies will
compare differences between Nexen’s new Buzzard structure
and the mature Scott/Telford platforms. Scientists will also
examine the role of oil and gas platforms as artificial reefs and
refuges for fish, and monitor biodiversity in the area. Buzzard was
considered an ideal site for a long-term SERPENT science
station because it was accessible from the start of its
development and enabled the creation of baseline data.
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