The Future of Water in Unconventionals

You are invited to participate in our important and timely multi-client study, The Future of Water in Unconventionals.

Making a choice between treating or disposing of flow-back water, including how to treat the water, is affected by drivers that will change over the next several years. Additionally, public preferences around water withdrawals, treatment and disposal are ever-changing and often costly. In fact, water transportation and disposal costs have been blamed for a 49% increase in production expenses per barrel sold by Northern Oil & Gas, Inc. (quarter on quarter, from 2011 to 2012).

Through engagement with industry stakeholders and analysis of quantitative oil and gas price forecast data, technology costs, regulatory change and public sentiment, this study will enable you to collect and analyze information, benchmark costs and make better-informed, near and long-term decisions about water management in unconventional operations.

Through a special report, two workshops, indices and databases, study participants will gain actual data and analysis for planning future budgets and making procurement decisions in unconventional operations. The complete lifecycle of water in unconventional extraction will be covered:

The Future of Water in Unconventionals will help companies plan for long-term cost management of water treatment and disposal by focusing on key themes:

• Water treatment vs. disposal options now, and 10 years from now
• Price forecasts for water, labor, transportation and water treatment
• Public sentiment of water use in unconventional operations and its impact on future costs

and addressing the following questions:

• How do I plan for long-term cost management of water use and disposal of flow-back water from unconventional activities?
• What is the economic viability of treatment and disposal options by play, especially in light of fuel price forecasts?
• What will drive key changes in costs and how dramatic will they be?
• How will public sentiment regarding water impact my costs? Are there strategies for mitigating these costs?

1. Two in-person workshops featuring presentations by IHS experts, interaction with key industry stakeholders and discussions with our staff. Presentations given at the workshops will be provided to clients following the events.
   
2. Following the workshops, a special report providing detailed forecasts, analysis and insights.

   The report will include in-depth sections on the following topics:

   - Comparative costs and forecasts across water treatment technologies
   - Water transportation cost analysis and forecasts
   - Major cost drivers by play
   - Public sentiment regarding water and its impact on costs

   Research will include primary research of trucking rates, disposal costs and treatment technology costs.

   This in-depth analysis of the state of water costs in unconventional operations and the drivers behind changing costs combined with comparative analysis of cost trends across plays and custom cost forecasts will help you understand the cost-benefit analysis of water treatment and disposal options now, and 10 years from now.

3. A forecast database (delivered in Excel) that leverages forecasts developed by IHS economists and includes labor rates and materials, as well as fuel prices and trucking rates.

   The database will include the following concepts:

   - IHS North American Unconventional Water Cost Index
   - Water treatment costs by major technology
   - Water transportation costs, including labor and fuel
   - Costs of water by play

The Future of Water in Unconventionals multi-client study will initially provide water cost analysis for the following plays:

• Bakken
• Barnett
• Marcellus
• Eagle Ford
• Niobrara
• Jonah-Pinedale
• Utica