ConocoPhillips
2006 Sustainable Growth Report2006 Sustainable Growth Report
Minimize Environmental Impact

Clean Water

Water is vital to our business. Exploration and production operations yield three to four barrels of water per barrel of oil extracted. Refineries use about one barrel of water for every barrel of oil processed. As with any natural resource, we have an obligation to conserve and use water wisely.

In 2006, we published a water sustainability position (http://www.conocophillips.com/sd/water) and issued guidance to our businesses on formulating responsible water management plans. These include requirements to monitor fresh-water consumption. The fresh-water data will be used to develop strategies to reuse selected waters, develop nonconventional sources where supplies are scarce and further improve the quality of water produced or discharged by our operations. Beginning in 2007, projections of each business unit’s water use are being highlighted alongside conventional economic metrics in the company’s annual planning cycle. This brings a new level of focus to water management as a fundamental component of our business planning.

In 2007-2008, we are mapping our global assets against a database of water availability. This will show which assets are in supply-constrained areas today, or could be in the future.

Produced Water

Ekofisk Platform
Installation of the CTOUR® purification process onto the Ekofisk platform.
Oil reservoirs frequently contain large amounts of formation water, which comes to the surface along with oil or natural gas. This “produced water” can increase over time as the oil or natural gas is depleted.

Produced water is not fresh-water. It is usually highly saline and may contain hydrocarbons, minerals or metals from the reservoir and can have low oxygen content. It also can be relatively high in temperature because of the depth from which it has come. Managing its treatment and disposal is a challenge for the industry.

Due to particularly stringent regulations in the Norwegian sector of the North Sea, our local business unit has developed extensive experience in technologies for handling produced water. At the Ekofisk field in the North Sea for example, we are investing $145 million in a produced water handling plant to comply with the Norwegian government’s goal of zero harmful emissions and discharges to the sea.

Instead of reinjecting produced water back into the Ekofisk reservoir, we have chosen to install the CTour® purification process, which removes hydrocarbons by injecting natural gas liquids (NGLs) into the produced water. The hydrocarbon components present in the water attach to the NGLs and are then extracted. CTour® is designed to return all the NGLs to the Ekofisk production stream, while enabling the discharge of purified water into the sea. The treatment reduces the hydrocarbon components in the water from 30 to only two to four parts per million – a substantial improvement in quality compared to that attainable with other technologies. The treatment works by removing poly aromatic hydrocarbons and alkylated phenols, as well as oil-soluble production chemicals.

Although conventional reinjection of the water was technically feasible, it involved a high risk of reservoir destruction and loss of reserves. We met with stakeholders to explain why we preferred the CTour® process, which involved no risk to the Ekofisk reservoir and offered high cleaning efficiency at reasonable cost. Installation is expected to be completed in 2007.

In the U.K. North Sea, we have led a joint-industry project to sponsor development of a new system for cleaning produced water. During 2005 and 2006, we hosted the first successful offshore trial of the AquaPurge® system, invented by an Aberdeen-based company, Clean Water Systems Limited, to meet more stringent discharge regulations for the region.

AquaPurge® uses ozone to oxidize oil and other organic contaminants in produced water. It breaks down the contaminants into water, small amounts of carbon dioxide and mineral salts. In most cases, the carbon dioxide is dissolved into the water along with the salts, leaving just water as the effluent.

During the field trials, the prototype AquaPurge® unit was used for water treatment final polishing on our North Sea Judy platform and reduced oil-in-water content by as much as 60 percent, from around 30 ppm, the current regulatory standard, to less than 15 ppm. A commercial unit has been ordered to replace the trial equipment in 2008.

In 2006, our North Sea business unit shared its expertise and gained ideas from others through a symposium on produced water handling. The event was attended by more than 70 ConocoPhillips delegates from around the world, along with business partners and government officials.

Marine Water Management

Water Handling Symposium
Company representatives from Norway, the United States, Venezuela, China and Indonesia discuss produced water handling at a companywide symposium.
Ballast Water

A major environmental issue for international shipping is the unintended transfer of marine species to non-native environments through ballast water. Unladen ships take on ballast water in port to enhance their stability at sea. When this water is discharged in another location, it can introduce invasive organisms which can harm native biodiversity.

To prevent this impact, our U.S. Gulf Coast tankers exchange ballast water for ocean water only when they are well outside coastal areas. This is in compliance with International Maritime Organization guidelines which state that marine species taken on at the source port are less likely to survive in the open sea. Our U.S. West Coast fleet discharges all ballast to an onshore treatment facility at Valdez in Alaska.

Bilge Water

In 2007, we installed EcoStream™ bilge-water treatment systems on all our tankers to reduce the oil content of potential discharges well below permitted limits. The new units replace oily-water separators that already meet international standards, and will thus take water treatment to new levels of cleanliness.

The new units separate oil and water in conjunction with existing oily-sludge treatment equipment. The recovered oil can be incinerated or stored for safe disposal onshore. The treatment reduces bilge water oil content to less than 10 parts per million, exceeding U.S. federal and international standards that allow discharges into the sea of water with up to 15 parts per million oil content.

Wastewater Treatment

In 2006, we began research at our technology center in Ponca City, Oklahoma, on applying fundamental water chemistry to further improve water reuse and recycling throughout our operations, with an initial focus on water treatment technologies for heavy oil production and refining. This effort includes a study to identify the effect of varying the steam temperatures and pressures used to recover bitumen from oil sands to minimize the extraction of unwanted contaminants from the formation and optimize treatment capabilities. The team also is evaluating durable filter media that can effectively remove persistent contaminants from water used in heavy oil production. Such media can be regenerated, which reduces the quantity of solid waste produced by conventional water treatment techniques.

ConocoPhillips 2006 Sustainable Development Report 19 In 2006, we hosted a two-day water management workshop at Qatar University’s Environmental Studies Center in the capital city, Doha, to introduce the concept of the Water Sustainability Center to community and industry leaders. Presentations were made in both English and Arabic.

Refinery Wastewater Management

Mike Corbett collecting water samples
Mike Corbett, a technician from the Bartlesville Technology Center, collects a water sample from the selenium removal equipment. We are testing this technology in our Rodeo refinery.
Our refineries already recycle and reuse water, and we strive to continually improve the effectiveness of our water treatment systems. We recently conducted studies at several refining facilities to better understand water-consumption patterns and to establish goals for more efficient water use and better effluent quality. Additional studies are planned for 2007 and 2008.

We invested more than $36 million on improved wastewater treatment at our refineries during 2005 and 2006. For example, major upgrades at Ferndale in Washington and Whitegate in Ireland feature Moving Bed Bio-Reactor (MBBR) biological treatment to achieve even higher standards of water purity. MBBR is an oxygenated process which uses natural oil-eating micro-organisms to clean the water by digesting contaminants. It differs from other systems by employing a plastic granular media which provides support for the bacteria to flourish, improving the treatment effectiveness.

At the Rodeo refinery in California, we are testing a more efficient technology to further reduce selenium levels in certain refinery wastewater streams. Selenium is a naturally occurring trace mineral found in crude oil. But its presence in high concentrations in water can impact aquatic habitats. Laboratoryscale tests showed the new technology may be more effective than existing systems, which can be expensive and difficult to operate. The ongoing pilot-scale tests at Rodeo have reduced the selenium content of wastewater significantly, with the added benefit of reducing other solid waste contaminants. Data from the trial is being evaluated to determine the feasibility of commercial applications in other refineries.

Other efforts look at ways to reuse water. At the Rodeo refinery, we are working with the local water utilities to explore the reuse of municipal wastewater by using micro-filtration and reverse osmosis technologies to provide high-purity water for various refinery processes. Successful implementation would lower the demand for additional water. In the United Kingdom, we have started construction of a water treatment unit that will purify wastewater from our Humber refinery for cooling purposes at the neighboring Immingham combined heat and power plant.

Go back to top


Our Water Sustainability Position

(http://www.conocophillips.com/sd/water)

Monitoring water quality
Monitoring water quality at Grissik gas plant in Indonesia.
As a responsible global energy company committed to sustainable development, we recognize that fresh-water is an essential natural resource for communities, businesses, and ecosystems. Global population growth will increase demand for fresh-water, and all users – domestic, agriculture and industry – will need to effectively manage supplies to meet demands.

ConocoPhillips produces and utilizes water in its operations. We are committed to the development of water management practices that conserve and protect fresh-water resources and enhance the efficiency of water utilization at our facilities. We will assess, measure and monitor our fresh-water usage and based on these assessments will manage our consumption and strive to reduce the potential impact to the environment from wastewater disposal.

Go back to top


Reducing Fresh-Water Use in Canada

In Canada, we are working to reduce water use for oil sands production in Alberta. Oil sands refer to a layer of sand that has become soaked in oil that migrated from deeper rock. Over time the oil’s lighter hydrocarbons have dissipated, leaving behind heavy bitumen. This bitumen is typically extracted using steam or water to separate it from the sand. At our Surmont project, we are using steam-assisted gravity drainage (SAGD) technology that pumps steam into the sands, heating the bitumen until it flows to parallel producing wells. Such facilities are designed to recycle up to 90 percent of the water used for steam. We are looking at ways to increase our water recycle rate and use sources other than fresh-water.

In the Cessford area of Alberta’s Southern Plains as of April 2005, we have eliminated fresh-water injection for pressure maintenance of oil reservoirs. Previously, water was drawn from the local river for injection into the Basal Colorado formation. We have replaced this fresh-water source with a saline source.

Elsewhere in Canada, we are minimizing fresh-water usage by reusing water for well completion work in the Brassey area of northeast British Columbia. Here we use a low-viscosity water-based fluid to pressurize and fracture the rock to stimulate gas flow. The fluid contains a sand additive to keep tiny fractures open and create pathways for the gas to reach the well bore. A typical treatment requires 1,900 barrels of water. We have reduced overall water consumption by reusing fluid recovered from the well for up to five further treatments. With a fluid recovery rate of over 50 percent, the practice not only reduces water usage but also saves up to $30,000 per well. Additionally, at locations far from water sources, this technique reduces the amount of water that must be brought in by truck.

Go back to top


Water Sustainability Center

Water Management
In 2006, we hosted a two-day water management workshop at Qatar University’s Environmental Studies Center in the capital city, Doha, to introduce the concept of the Water Sustainability Center to community and industry leaders. Presentations were made in both English and Arabic.
In Qatar, we are sponsoring a Water Sustainability Center (WSC) with the long-term vision that it will become a corporate center of excellence for water-related technologies, providing services to our businesses worldwide and to the Qatari people. Potential projects could include research into new technologies for produced and effluent water treatment and water supply for enhanced oil recovery projects (injecting water into mature fields to increase output). More general work could focus on industrial and municipal water reuse, desalination and agricultural water projects.

A longer-term goal of the WSC would be to sponsor sustainable development projects that benefit the local community, such as programs to encourage water conservation, exhibitions and public or industry workshops. Company representatives from Norway, the United States, Venezuela, China and Indonesia discuss produced water handling at a companywide symposium.

Go back to top