TY - JOUR
T1 - Does Unconventional Energy Extraction Generate More Wastewater? A Lifetime Perspective
AU - Xu, Minhong
AU - Xu, Yilan
AU - Khanna, Madhu
N1 - Funding Information:
The authors thank the Enverus company for providing the oil and gas production data. The authors also thank Amy Ando, Kathy Baylis, Sandy Dall'Erba, Don Fullerton, Philip Garcia, Erica Myers, and Charles H. Nelson for helpful comments, and Wojciech Szewerniak for his assistance with early data collection work. The authors benefit from the discussions with participants in the 2015 Institute for Sustainability, Energy, and Environment Annual Conference, the 2015 North American Meetings of the Regional Science Association International, the pERE Seminar of the Department of Agricultural and Consumer Economics and the REAL Seminar of Regional Economics Applications Laboratory at the University of Illinois at Urbana-Champaign.
Publisher Copyright:
© 2022 Elsevier B.V.
PY - 2022/7
Y1 - 2022/7
N2 - Unconventional energy extraction has been accompanied by a faster increase in aggregate wastewater generation compared with conventional practice. Understanding the extent to which it is due to technologies, energy production, or geological characteristics has implications for reducing the associated environmental risks. We analyze how wastewater generation patterns differ between unconventional wells and conventional wells, accounting for differences in well configurations and local geology. Using the 2008–2016 monthly production data from 50,039 wells, we show that unconventional wells generated more wastewater in the first 12 months of production but less cumulative discharge than conventional wells. Unconventional oil wells had a lower wastewater-to-energy ratio throughout their lifetime than their conventional counterparts, whereas no efficiency gap existed among gas wells. We find both an increasing initial discharge gap and growing efficiency gains between unconventional wells and conventional wells starting production in more recent years, likely due to increased penetration and persistent improvements of unconventional technologies over time. Our findings call for targeted strategies to balance the short-term disposal burden and the long-term efficiency gains of unconventional energy extraction.
AB - Unconventional energy extraction has been accompanied by a faster increase in aggregate wastewater generation compared with conventional practice. Understanding the extent to which it is due to technologies, energy production, or geological characteristics has implications for reducing the associated environmental risks. We analyze how wastewater generation patterns differ between unconventional wells and conventional wells, accounting for differences in well configurations and local geology. Using the 2008–2016 monthly production data from 50,039 wells, we show that unconventional wells generated more wastewater in the first 12 months of production but less cumulative discharge than conventional wells. Unconventional oil wells had a lower wastewater-to-energy ratio throughout their lifetime than their conventional counterparts, whereas no efficiency gap existed among gas wells. We find both an increasing initial discharge gap and growing efficiency gains between unconventional wells and conventional wells starting production in more recent years, likely due to increased penetration and persistent improvements of unconventional technologies over time. Our findings call for targeted strategies to balance the short-term disposal burden and the long-term efficiency gains of unconventional energy extraction.
KW - Oil and Natural Gas
KW - Unconventional Energy Extraction
KW - Wastewater Management
UR - http://www.scopus.com/inward/record.url?scp=85128663124&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85128663124&partnerID=8YFLogxK
U2 - 10.1016/j.ecolecon.2022.107436
DO - 10.1016/j.ecolecon.2022.107436
M3 - Article
AN - SCOPUS:85128663124
SN - 0921-8009
VL - 197
JO - Ecological Economics
JF - Ecological Economics
M1 - 107436
ER -