The oil industry faces the "three difficult" choice

Water is a very important commodity for the energy industry, especially in oil and gas exploration and development. The Cambridge Energy Research Association and the World Economic Forum recently released a report entitled "Thirsty Energy: Water and Energy in the 21st Century," which warned that "in many parts of the world, the energy industry will allocate very little water resources. tension".
Daniel Jerkin, executive chairman of the Cambridge Energy Research Association and executive vice president of HIS, said that the report described water-related challenges and possible solutions from well-known authoritative figures in the fields of energy, water supply, engineering, and academia. Yergin pointed out that all over the world must find a program for optimizing the use of resources. "How to obtain water and solve water shortages is a regional issue. The impact of water shortage on the energy industry is also regional."
For business leaders and decision makers, how to optimize the use of water and energy in a carbon-constrained environment is crucial. Along with agriculture and other “water users”, energy companies will increasingly be invited to participate in world water management. Oil and gas exploration and development companies have discovered that they are more involved in water-related problems than they used to be in conventional and unconventional gas drilling.
In January 2008, the Federal Court of the United States of Montana ruled in a case that the parties could not stop the coal-bed methane development project on its farm. In August of the same year, out of serious concern for groundwater, New Mexico Governor Bill Richardson approved the extension of the production ban in the Calisteo Basin, and the New Mexico Petroleum and Natural Gas Association has filed a lawsuit against it.
Oil and gas exploration and development projects will also conflict with cities and regions in terms of safe and stable drinking water supply. "The importance of water is no longer underestimated when considering energy balance issues. In the future, we will face more serious water shortages," said Christopher Forray, senior director of the World Economic Forum and director of the Department of Energy. Both climate change and climate change must consider the impact of water. How to optimize energy selection in the future will become a “three-difficult” problem. The Cambridge Energy Research Association and the World Economic Forum report pointed out that as communities and local governments introduce regulations to support the protection of drinking water supply, the energy companies will encounter in Montana and New Mexico will become more and more common.
The report pointed out that in studying how the various economic sectors use water, it is important to distinguish between the amount of water extracted and the amount of water consumed. The amount of water extracted refers to the total amount taken from the water source, and usually part of it will return to the water source, such as the cooling water of the power plant. However, the consumption of water will not return water resources, and the measurement of both is very important. Water consumption reflects the impact of an economic activity on water resources, but for production operations, the extraction of water resources is critical, even if the water is not completely consumed.
Agriculture is the largest water user in the world, accounting for 70% of the world's freshwater extraction, and the energy sector accounts for 8% of the world's freshwater extraction. However, in developed countries, this figure may be as high as 40%. In contrast, the U.S. energy industry consumes 5% of water while agriculture accounts for 85%. Under normal circumstances, long-distance water transport is not economically viable. Therefore, the optimization of water resources should be resolved within the region.
Yergin said: "The energy industry must use water resources more intelligently while coping with climate change and energy security. In the next few decades, the optimization of these three solutions will be an important consideration in the energy industry."

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