On to Part II: Business and Financial implications for shallow well operators and their users. First, we note that generally across the Midland basin, we see the clearest signs of pressurization amongst the really old EOR wells, which are generally shallow, and tend to be more concentrated near the flanks or edges of the basinRead more
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We’ve been asked to opine on the future implications of the Seismic Response Area (SRA) recently identified by the Texas RRC. The area is located in the heart of the Midland basin, at the intersection of Andrews, Martin, Ector, and Midland counties. The intent behind the RRC’s “voluntary” curtailment requested of operators is to abate induced seismicityRead more
We have some great news to report on this auspicious day in 2021! We’ve long maintained “transparency” would be a great equalizer. We’ve predicted a dramatic increase in recycling when New Mexico Operator Water Use reports for Completions made it into the public domain, and that is exactly what is happening. (Keep in minds theRead more
For those of you in the water treatment and recycling business, the New Mexico legislature recently passed ground-breaking legislation for water conservation advocates. New Mexico House Bill HB546 cleared the path in 2019 for water recycling going forward, by voiding agreements or covenants which require the operator to use fresh water, if more suitable recycledRead more
Midland-based XRI Holdings, LLC recently completed its Northern Delaware Basin Supersystem, a water pipeline system crossing core oil and gas development areas in New Mexico. The new infrastructure, which spans 125+ miles of Lee and Eddy counties, will be supplied in part by recycled produced water volumes from the company’s own water terminals and treatedRead more
Constrained water disposal capacity in some key hydrocarbon producing areas of Oklahoma is making for some complicated water logistics, leading producers to get creative in how to reduce their disposal volumes. EnergyMakers Advisory Group’s Laura Capper shared this, and other, insights in the Feb 2019 issue of The Oil and Gas Investor. In a featureRead more
The meteoric rise in drilling and completions activity in the Permian Basin in the past few years has brought with it a scramble for new sources of water. As a result, “water is the new oil,” says Energy Makers Advisory Group’s Laura Capper. “The value of water has changed.” The U.S. demand for waterRead more
As the oil and gas industry faces mounting challenges about how and where to dispose of its growing volumes of wastewater in certain regions, the Trump administration is considering whether to ease regulations and make it easier for drillers to discharge appropriately treated wastewater directly into rivers and streams. This potential shift in policy comesRead more
If Permian oil and gas production is going to continue to thrive, operators need reliable and affordable access to more water management solutions. Oil executives from major Permian operators shared this common consensus at a recent energy summit at Rice University in Houston, calling water disposal from oilfield operations one of the biggest challenges theyRead more
The US Environmental Protection Agency (EPA) this week announced a new study of current oil and gas wastewater management requirements to help determine if new regulations are necessary. EPA’s current guidelines cover E&P effluent onshore at the wellhead and at centralized wastewater treatment facilities. But as one EPA official told The Oil & GasRead more