![]() IHS Markit, a research and consulting firm, reckons that the overall market for water in the Permian totaled $12.2 billion in 2018. WaterBridge also bought the water assets of NGL Energy Partners for $238 million. That includes 60 miles of pipelines, 10 disposal wells, and a 15-year agreement from Halcon to use its services. WaterBridge bought the water infrastructure assets of Halcon Resources in a deal valued at $325 million. One of the biggest produced water players is WaterBridge, a company backed by Five Point Capital Partners. On completion, the system will include 300 miles of permanent pipeline and 200 miles of temporary lines, Solaris says.Ī few days earlier, Blackstone, the New York private equity firm, announced a $500 million investment in Waterfield Midstream, a new water logistics company. This week, Solaris Water Midstream said it would expand its Pecos Star pipeline system 125 miles into Lea County, New Mexico after signing an agreement to handle water logistics for 369,000 acres on which Marathon Oil operates. As a result, the basin is attracting hundreds of millions of dollars in capital. But the basin is arid, produced water is plentiful, disposal regulations are tightening, and investors see an opportunity to consolidate a fragmented water disposal sector into cohesive units that resemble the pipeline networks that ferry oil and gas from the wellhead to refineries. There are several thousand disposal wells in the Texas section alone. “You can’t just dump it on the ground.” Not having a means for getting rid of produced water “could literally shut down the oil industry,” he said. “Produced water can be the biggest disruptor of oil and gas,” Benjamin Reed, chief operating officer of SourceWater, a produced water data firm, told Circle of Blue. The financial outlay also makes it an underappreciated risk. ![]() Disposing of produced water is one of the largest operating costs for an oil well. Produced water, as the industry calls it, is a noxious mix, a hypersaline brine - much saltier than the ocean - that includes chemicals used during fracking and trace minerals and radioactive elements that are naturally present at depth. ![]() (A barrel equals 42 gallons.) As oil production climbs to new heights, the basin is swimming in its own wastes. Producing oil produces even more water: two to five barrels of water for every barrel of fracked oil. Oil is not the only liquid that emerges from the Permian’s wells. The United States is now the world’s largest crude oil producer, and close to one-third of the country’s output comes from the Permian. Production there, spurred by growth in fracked oil from stacks of shale formations thousands of feet below ground, has helped drive America’s oil output to its highest level ever, nearly 12 million barrels per day. ![]() states, is the hottest thing in oil these days. The Permian basin, a chunk of western Texas and southeastern New Mexico that is larger than most eastern U.S. Groundwater and surface water are under immense pressure in arid western Texas.That includes sourcing water for fracking, transporting, storing, treatment, and disposal of produced water IHS Markit, a research and consulting firm, reckons that the overall market for water in the Permian totaled $12.2 billion in 2018.Produced water, as the industry calls it, is a noxious mix, a hypersaline brine that includes chemicals used during fracking and trace minerals and radioactive elements that are naturally present at depth.Producing oil produces even more water: two to five barrels of water for every barrel of fracked oil.Water lines snake across the Permian basin.
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