Data management – the key to safe fracking?

Over the last few years, rapid technology developments related to fracking have spawned significant opportunity for the oil and gas industry, but that growth has led to controversial and well-publicised environmental issues. LIMS has the potential to make the lab an essential part of the safety and compliance of any fracking operation   The future of fracking is far from certain: the regulatory landscape is bound to shift, and we’re likely to see more – not less – scrutiny of companies and processes. And, in an industry where agility is so critical, companies that are not fully prepared to deliver required reporting or manage the variety of data required will be less flexible and potentially suffer. To fully capitalise on the opportunities that can come from all possible sources, including hydraulic fracturing, oil and gas companies must intelligently manage environmental concerns against business priorities. Comprehensive data collection and management represents a critical opportunity for these companies to take as much of the uncertainly out of the process as possible, and prepares them for any environmental review related to regulatory guidelines or driven by public concern. The most vital component of any exploration company’s testing laboratory is going to be their data management system. A laboratory information management system (LIMS) is the key to collecting every element of data, from field sample testing, environmental impact monitoring and instrument performance. The LIMS is then, as the centralised repository of all that data, the primary engine that consolidates and delivers the proper regulatory reports as and when they are needed. The politics of fracking are not the focus of this piece – we’re concerned here with what it takes to manage uncertainty and risk by mastering data collection, analysis and reporting. What’s more, as with other examples of industries facing onerous compliance requirements, there’s also the silver lining that analytics have the power to transform a business overall – actually improving productivity, predictability and profitability. In the oil and gas industry, the lab is the epicentre for business decision-making as well as compliance. Today, many oil and gas companies already rely on sophisticated informatics solutions to collect, manage and report on sample data from across the production platform and beyond.  Regardless of the type or location of the exploration, fracking included, proper data management is not confined to just the laboratory. Data capture has to happen in the field where samples are collected, where the machinery is in operation and where the residual chemical or water from the project is stored or collected. With today’s comprehensive LIMS systems and with newer mobile technologies enabling field workers to act as a remote sample collection lab, all the data related to those external activities is fed in real time back to the centralised LIMS, where further analysis is conducted and comprehensive reports are generated for management. This scenario takes connectivity of instruments, personnel and the lab in order to make this data available as reliably as possible, and quickly. Companies that fully integrate and automate their data management and collection systems also gain the ability to identify and respond to potential bottle-necks in production due to equipment maintenance or degradation due to the effects of caustic chemicals and water, environmental hazards, or a reduction in quality of the output at that location. Because field workers and managers have access to information in real time, they also gain a quality control and performance system that enables them to capitalise on every opportunity to transform and expand their business. There’s no question that there is great opportunity to deliver more natural resources by utilising hydraulic fracturing techniques in both remote and well-populated areas. However, that is where much of the controversy can arise. Remote or local, fracking must rely on aggressive and invasive techniques that use literally hundreds of chemicals and other elements, from ethylene glycol to methanol and formaldehyde along with millions of gallons of fresh water, as well as radioactive materials for tracing the injection profile. While fracking isn’t new, extraction at an enormous scale, as is now being done, can contribute to real or perceived threats to the natural landscape, the water table and even the stability of the surrounding ground structure. In remote locations where native water sources, protected grounds or animal populations are involved, exploration companies need to be mindful of monitoring for not only their own success, but for the successful recovery of the landscape after extraction activities have finished. That means collecting data about the ground water quality, as well as the soil surrounding the site for possible contamination from well effluents and run-off. In many cases surrounding more populated areas, fracking has caused concerns about ground stability where residents in nearby locations have felt small earthquakes. Along with capturing data related to environmental concerns, data is essential in monitoring the efficient operation of the heavy drilling equipment needed to extract the oil from deep within the fissures caused by fracking. In the potentially highly toxic environment of a typical fracking site, producers must be extra vigilant: the chemicals, sand, and even the intense water pressure used to create the seams that will allow oil and gas to be collected – all of these elements are potentially caustic to drilling equipment. And the expense of having just one piece of equipment out of commission due to breakage is enormous, putting unnecessary pressure on already tight margins. That’s why equipment monitoring and maintenance schedules, all maintained by the LIMS, are essential to ensuring a well-run exploration site. Since hydraulic fracturing is a relatively new process, the regulatory framework around fracking is still underdeveloped at best. As of this writing, the US EPA is under some criticism for not having firmer guidelines for monitoring and reporting on environmental issues related to fracking sites. But it’s likely that somewhat guarded approach is due to the sheer complexity of the processes, which can impact ground water, soil and air and fall under the purview of the Toxic Substances and Control Act, and the Clean Air Act, but explicitly not the Safe Drinking Water Act. As with any multi-agency regulatory decision making, things can get complicated very quickly and expose the industry to some longer-than-usual period of waiting for clearer regulatory requirements and reporting to become available. While the benefits of a LIMS in fracking are clear at the regulatory compliance level alone, the opportunity for data-driven business transformation cannot be understated. As organisations such as ASTM develop standards – aimed at standardising data; ensuring proper data collection during fracking; and making data exchanges by state agencies, industry and other stakeholders more efficient – oil and gas companies will have a wealth of data at their disposal. Fracking is not a one-size-fits-all proposition. In fact, few companies will reveal the composition of fracking fluids used in operations, a formula that may change depending on soils and other characteristics of different geographies. Studies have shown more than 750 different chemicals and components may be used in the hydraulic fracturing process. This suggests another benefit of assiduous monitoring: maximising efficiency and profit potential. With a LIMS, monitoring the composition of fracking fluids isn’t guesswork, and ongoing refinements are possible with laboratory precision. An additive used once to thicken the water into a gel may become a best practice for opening fractures and carrying proppants deep into the rock unit at similar sites. Expensive or harmful chemicals may be substituted with cheaper, less toxic materials after companies have conducted data comparison studies between equivalent sites. Likewise, companies that monitor chemical composition are more likely to uncover insights such how to prevent corrosion and extend the life of expensive capital equipment. The common denominator is data, and it enables oil and gas companies to maximise gains and minimise environmental risk during the fracking process. Seen through this lens, it’s clear how the lab, supported by a world-class LIMS such as Thermo Scientific SampleManager, is so central to an efficient, profitable fracking operation. Having full visibility into all aspects of fracking operations empowers decision-makers to make meaningful choices that have a positive impact on bottom- and top-line revenue. So whether an oil and gas laboratory starts with regulation as its motivation or simply wants to improve quality, the end result with LIMS is the same – an integrated data management system of record, pre-configured for the industry, which is designed for evolving compliance requirements and ongoing performance gains. Ultimately, a LIMS is a powerful and flexible reporting tool that can allow massive amounts of data to become actionable for managers at all levels of the organisation – whether in the field or at the business operations level. When oil and gas companies have full visibility into their operations, regardless of the techniques used – from deep ocean drilling to tar sands exploration or hydraulic fracturing – decision-makers are empowered to make informed choices that have a positive impact on bottom- and top-line revenue. By using a LIMS to continuously monitor key parameters from operations, the company can minimise their impact on the environment – even with changing environmental regulations, ensure quality control and comply with industry standards such as ISO 17025 and ASTM that are squarely focused on efficiency and best practices. Hydraulic fracturing is revolutionising today’s energy industry in many parts of the world, but uncertainty still prevails industrywide, especially with regard to future regulation and oversight. Advanced LIMS technology isn’t designed to address risks from extraction, but it does enable oil and gas companies to mitigate those risks and respond to changes and opportunities with agility, using their labs as centres of data-driven decision-making. The key to addressing uncertainty is greater knowledge, and at the centre of a successful fracking operation will be a lab that is capable of delivering more today for a business that expects to grow well into the future. Author Colin Thurston, Informatics Project Director, Thermo Fisher Scientific