Savage Case StudyWaste Water Handling

Energy company struggles with waste water handling.

When natural gas prices reached $13 per thousand cubic feet, the number of rigs drilling for natural gas reached an all-time high.  For one well-known gas exploration and production company, each thousand cubic feet of natural gas also brought large amounts of produced water that require on-site tankage, inventory management, truck transportation and disposal.  During this period of rapid growth, the management and transportation of this produced water became very expensive and logistically complex.  Each load of water generated a paper ticket and was then parceled out among 15 different trucking companies for transport. This process required approximately 20,000 annual man hours to manage, and was taking employees away from their primary responsibility, gas production. The total cost to the company for waste water handling and disposal was $40M annually.

Development of custom tracking system increases efficiency. 

A Savage team - including safety, logistics, engineering and IT resources - worked with this Customer to find a cost-effective solution that would enable them to focus on what they do best, natural gas production.  The team mapped each existing manual process and then developed new technology that that centralized produced water inventory logistics. This new system tracked the management, dispatching, ticketing, invoicing and safety training.  To monitor the effectiveness of this new approach, key performance indicators (including cost per barrel and barrels per hour) were created, tracked and reported back to a dispatching dashboard within the system to ensure daily focus and timely reaction to changes in productivity on an individual and fleet basis.

Savage then worked with the customer to deploy this new system. A new fleet of Savage trucks, sourced to maximize the alignment between load capacity and tank levels, was deployed. This fleet was equipped with in-cab smart devices, providing turn-by-turn navigation and GPS tracking and real-time mapping, alerts and geo-fencing. This on-board technology enables real-time KPI tracking such as loading, unloading and travel times. The in-cab smart devices also enable the collection of electronic tickets, thus eliminating the need for manual ticketing and dispatching of each driver that the Customer was relying on prior to adopting the Savage system. Also by tracking the level of the water within the tanks, the Savage fleet was able to more accurately time their dispatches to maximize the volume of their loads, and minimize the number of waste water transport trips.

Implementation positively impacts business and the environment.

The collaboration between Savage and this natural gas production company, resulted in measureable improvements; reduced travel, well, stop and disposal times, and increased barrels disposed per hour. The implementation of Savage’s solution for the Customer’s waste water handling resulted in annual cost savings in excess of 20%.  In addition, this Customer realized an 18,400 annual reduction in man hours required to handle paper tickets and invoices, allowing these man-hours to be refocused on the customer’s core business of gas production.  The efficiencies of this Savage system are demonstrated by the 69% decrease in particulate matter emissions, 57% decrease in NOx + NMHC emissions, 43% in CO2 emissions and decrease in annual truck miles of 2,700,000.

About Savage Solutions for Liquid Bulk

Managing liquid bulk materials often requires expertise outside of your core business area. Specialized handling for pick-up and disposal and right-sized equipment is typically necessary. We transport, heat, transload, toll process, store and handle all kinds of liquids. And we do it by applying the Savage System — creating customized operations that integrate the best people, processes and equipment for the most innovative liquid bulk logistics and supply chain solutions. Contact Savage for complete information on our liquid bulk handling services.