American Oil and Gas Reporter - March 2023 - 68

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In the Eagle Ford and other shale plays, operators are implementing closed-loop
systems to successfully drill long laterals while simultaneously minimizing waste and
reducing environmental impacts. Closed-loop solutions encompass drilling fluid products,
state-of-the-art solids control equipment, and haul-off and disposal services.
to improve their ESG standing and lower
costs, closed-loop systems are likely to
become an increasingly important tool.
However, it is important to consider
when these systems are the best option
versus when other processes may be
more suitable.
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68 THE AMERICAN OIL & GAS REPORTER
One of the primary advantages of
closed-loop systems is the ability to treat,
recycle and reuse drilling fluids, which
can mean significant cost savings. Therefore,
closed-loop systems make the most
sense when a lot of drilling fluid is being
used and there are limited disposal options.
It is much more economical to treat and
reuse the fluid than to constantly dispose
of it and bring in new fluids.
Additionally, closed-loop systems are
ideal for areas where water resources are
limited, since the systems significantly
reduce the amount of freshwater that is
needed for drilling operations. This is
particularly important in regions prone
to droughts or in which water is scarce.
On the other hand, closed-loop systems
may not be the best option for every
drilling operation. For smaller jobs that
do not require much drilling fluid, traditional
disposal methods may be more
cost-effective. Moreover, if a site has limited
space or infrastructure, it may not be
feasible to set up a closed-loop system.
In these cases, it is important to evaluate
other waste management options
and consider each method's environmental
impact.
For a private producing company with
Gulf Coast operations, the decision to
use a closed-loop waste management system
typically is determined by the well
type and its geographical area. As a company
that focuses on conventional onshore
oil and gas exploration, the operator tends
to opt for closed-loop systems when the
well requires a weighted mud system
with barite or an oil-based mud system.
Other factors that come into play when
choosing the disposal method include
surface restrictions on land farming and
environmental risks such as wetlands,
waterways or densely populated areas.
Generally, the operator tends to use
closed-loop systems more than 90% of
the time in Texas and 100% of the time
in Louisiana because of state land farming
regulations and litigation concerns.
Shale Oil Challenges
Oil-based mud is a common choice
for drilling in the Eagle Ford because it
promotes higher penetration rates and
wellbore stability, especially in challenging
geological formations. However, this preference
adds another layer of complexity
with regard to waste disposal.
Therefore, our upstream partner in the
Eagle Ford prefers closed-loop systems
for most projects because they ensure
proper waste disposal and reduce the
company's long-term concerns. Even so,
the benefits of closed-loop systems extend
far beyond waste disposal.
By minimizing the volume of waste
in need of disposal, operators can reduce
their costs significantly. Additionally, reclaiming
and reusing as much drilling
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American Oil and Gas Reporter - March 2023

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