Water plays an important role in oil and natural gas production. The industry primarily uses water from surface water bodies (rivers, lakes), although groundwater aquifers and other sources such as municipal water treatment plants are also used.
How water is used
Water is used in many ways including:
- In oil sands mining, hot water is used to separate bitumen from sand and clay. This is the largest use of water for oil and gas activities.
- In oil sands in situ operations, water is used to generate steam is to heat the bitumen underground.
- In conventional production, water can be pumped into an older reservoir to flush out trapped oil, a process called enhanced oil recovery.
- In hydraulic fracturing, water is pumped at high pressure into rock formations to create tiny cracks and fractures in the rock, freeing trapped oil and natural gas.
Water may also be used in drilling operations, for dust control, for building winter roads, for pipeline testing, and for other non-production purposes.
How much water is used
Companies must apply for a licence or approval from the provincial regulator to use fresh water. The approval has conditions attached that require the company to report quantities of water used and may require submission of monitoring data to ensure the operator’s activities avoid or minimize impacts to water resources.
Industry’s water use in Alberta and British Columbia is publicly available on the regulators’ websites:
- Alberta Energy Regulator Water Use Performance Report
- B.C. Energy Regulator Quarterly Water Management Summaries
In 2022, the oil and natural gas industry in Alberta used about 261 million cubic metres (m3) of fresh water, equivalent to 0.180% of the fresh water available in Alberta. Over 80% of this water was used for oil sands mining. (Source: AER Water Use Performance Report 2022)
In 2022, the oil and natural gas industry in British Columbia used about 5.2 million m3 of fresh water, equivalent to 0.004% of annual runoff that replenishes annually in Northeastern British Columbia. (Source: B.C. Energy Regulator Fact Sheet: Water Used in Natural Gas Activities)
Reducing water use
The oil and natural gas industry has significantly improved its water use intensity (the volume of fresh water used to produce a barrel of oil equivalent). Most water used by the industry can be recycled and re-used many times, reducing the need to obtain fresh water from sources such as rivers, lakes, or groundwater aquifers.
The industry works to reduce fresh water use in the following ways:
- Recycling water for re-use in operations.
- Using low-quality alternatives to fresh water, such as deep saline groundwater or produced water (water from the underground reservoir that comes to the surface along with oil or natural gas).
- Collaborating on water management by sharing water sources and infrastructure with other operators.
- Working with communities to re-use treated municipal and/or industrial wastewater.
Managing water scarcity
In 2024, parts of Western Canada are experiencing severe drought and low water levels. Drought impacts are evident in some oil and natural gas operating areas, which may impact the ability to obtain water licenses/approvals. Oil and natural gas operators are monitoring drought conditions and engaging with provincial regulators as needed regarding their future water demand and drought mitigation plans. In addition to adhering to the conditions in their water licenses to ensure they do not exceed their withdrawal limits, oil and natural gas companies are proactively planning for water shortages by conserving water in their operations.
The oil and natural gas industry will continue to recycle water within operations to sustain production and minimize fresh water use, use low-quality alternative water sources where available, and share water where possible. Operators will collaborate with provincial authorities, other sectors, and with one another to manage any water shortages.
Hydraulic fracturing
To support a responsible approach to water management in hydraulic fracturing operations, CAPP and its members developed Hydraulic Fracturing Guiding Principles and Operating Practices.
Groundwater protection
Today, most oil and natural gas wells are drilled to a depth of between two to three kilometres below the surface, or more. Drinking water aquifers are generally much shallower, between 18 and 150 metres below surface. Wells are subject to strict rules to protect freshwater resources and prevent water contamination.
Wells are designed and constructed to ensure underground water sources are protected. When a well is drilled, multiple layers of steel casing are inserted into the well and cemented in place. This creates a solid barrier between the well and any fresh groundwater sources.
As important as the casing is, it is the cement that adds the most protection for groundwater. Cement creates a hydraulic barrier which prevents fluid from deeper zones migrating into groundwater resources. Consequently, the quality of the initial cement job is a critical factor in the prevention of water contamination.
Regulations are in place to protect the environment and to ensure a well is properly engineered to maintain safety and integrity over its full life cycle.