Water logistics (water hauling, transfer and storage) segment is going to be the main focus for E&Ps to reduce water-related costs. Truck hauling continues to represent the main share of the total logistics segment and major cost for oil companies and operators, however, IWS Energy is investigating the opportunity to develop a cost effective logistics solution reducing the overall costs of oilfield water treatment.
Due to recent oil price increases, the water transfer segment of the market has continued to show robust growth over the past few years which would support the development of pipeline infrastructure in certain regions. E&P companies, SWD operators and midstream companies are actively building or planning more fixed water pipeline projects in order to bring down water transportation costs, especially in gathering oilfield wastewater.
The need to reduce logistical costs and build water security
This segment is driven by the need for operators to reduce overall logistics costs which continue to make up over 65% of the total spend. Concerns in building such fixed pipelines now focus on right of way acquisition, leak detection and economics.
Still much work is needed from a feasibility point of view, with proper steps to ensure facilities and operations are maintained and provide to the high environmental standards.
Currently, IWS Energy is investigating the development of a network in order to broaden our service offering and provide long term solutions for our customers.