(GP/GT) for Additional Water Supply in the Lower Rio Grande

ECONOMIC CONSIDERATIONS
This section includes a discussion of economic considerations for
geopressured application. Specific cost information is provided for the areas
that appear to have the greatest potential for direct use, such as
desalination, an integrated agriculture/aquaculture facility, and gas and
brine sales.
GENERAL
Current economics do not allow a geopressured well to be developed for the
exploitation of only natural gas because of the high investment costs and
marginal quantity and quality gas produced. However, because of the size of
the geopressured reservoir and the presence of hot fluids under high
pressures, it is possible that a mix of applications that exploit these
resources could prove to be economical. It is the purpose of this economic
study to investigate if a cascading of energy applications such as gas sales,
desalination of water, and agriculture/aquaculture would be economical from a
developers point of view.
Specific market needs in geopressured regions will encourage those
applications that will produce the greatest net return and benefits. For
example, the lower Rio Grande Valley of Texas and the central valley of
California have the concurrent need of potable water and presence of
geopressured resources. Site specific desalination and
agriculture/aquaculture applications could result in the profitable
development of a geopressured resource.
It is essential that all available options are evaluated and balanced to
derive optimal scenarios in which the guiding principle is to extract the
highest return on investment under the specific constraints that are imposed
upon the installation. The use of other energy feedstocks, such as common
fossil fuels and other wastes, biomass, etc., should also be considered so
that environmental considerations, conservation of energy, and careful design
all contribute to a synergy.
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