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NETL’s AquaTrade: The Produced Water Matchmaker for Oil and Gas Operators
Evaporation ponds holding produced water amid the oil wells of the Permian Basin in New Mexico.

Evaporation ponds holding produced water amid the oil wells of the Permian Basin in New Mexico.

NETL has developed a new tool to assist in the reuse and recycle of produced water generated by oil and gas operations, providing the industry with an easy-to-use online portal that encourages responsible water use during the production of U.S. fossil energy resources.

“Our latest tool, which we plan to launch this year, is called AquaTrade, a custom-built, matchmaking portal to facilitate the mutually beneficial exchange of produced water across organizations, increasing water recycling and reuse rates and reducing freshwater consumption in oil and gas operations,” said Markus Drouven, NETL technical director for the U.S. Department of Energy’s (DOE) produced water optimization efforts.

AquaTrade was developed in collaboration with multiple partners. “This portal is the result of our close working relationship with the Ground Water Protection Council, a national organization whose membership is made up of state groundwater regulatory agencies from across the United States,” Drouven said.

Produced water management is an integral part of operations in basins throughout the nation. Due to its elevated salinity, produced water usually cannot be discharged to the surface environment without treatment. However, it can be recycled for hydraulic fracturing when completing new oil and gas wells, reducing the need to source fresh or brackish water. 

Using AquaTrade, operators with produced water on hand (presumably from an active well) are connected with other nearby operators seeking to fracture a new well and exchange water with them. “It’s often a win-win proposition. The producer does not have to pay for the costly treatment or disposal of the water, and the developer of the new well can save on water acquisition costs,” Drouven said. 

Traditionally, water-sharing has been an impromptu activity with individual water managers relying on word of mouth, text messages or phone calls to identify produced water recycling opportunities.

“AquaTrade facilitates these exchanges by making parties aware of promising opportunities they may not have known about otherwise,” said NETL researcher Philip Tominac, the leading developer behind AquaTrade.

The portal was built with the intent of keeping the user experience simple and fast. “We recognized water managers lead busy lives, and they do not have time for lengthy and complicated data inputs,” Tominac said.

The tool follows a simple workflow where oil and gas operators and other industry participants can log in and post their produced water supply or demand volumes, along with acceptable prices, transportation options and quality information.

AquaTrade’s functionality is derived from algorithms established in the electrical power industry, where energy “trades” are the basis for matching electricity suppliers with consumers. AquaTrade uses its algorithm to quickly identify good water recycling opportunities based on the data that operators have fed into it. By coordinating exchanges in this manner, operators can go from realizing a need to contacting a potential match in a few minutes.

All matches are organized within a dashboard designed to streamline the process. Making entries into the portal brings no commitment to act on the proposed matches; once a match is accepted by all parties the portal simply notifies users and reveals contact information. The rest is left up to the matched users to execute the trade.

An overview of the AquaTrade workflow.
An overview of the AquaTrade workflow.

AquaTrade does not just benefit the oil and gas industry. “Local communities and the environment also stand to gain from the recycling of produced water because there will be less need for water disposal and the amount of freshwater used for energy production is reduced,” Drouven said.

NETL’s innovation may eventually serve as a platform for water exchanges in other domains. Farmers or industrial water consumers could conceivably use a tailored version of the portal to buy treated water to irrigate non-food crops or for cooling applications.

“AquaTrade is built on the recognition that water — produced or otherwise — has inherent value. With this portal, we are simply using a tried-and-tested technique to bring this value to light while ensuring prudent water use,” Drouven said.

NETL is seeking industrial and other partners to further pilot AquaTrade and to solicit feedback on opportunities for improvement. Interested parties may email AquaTrade@netl.doe.gov for more information.

NETL is a DOE national laboratory dedicated to advancing the nation’s energy future by creating innovative solutions that strengthen the security, affordability and reliability of energy systems and natural resources. With laboratories in Albany, Oregon; Morgantown, West Virginia; and Pittsburgh, Pennsylvania, NETL creates advanced energy technologies that support DOE’s mission while fostering collaborations that will lead to a resilient and abundant energy future for the nation.