THIS MAY LOOK LIKE A DESERT, BUT
IT'S ACTUALLY AN OCEAN
BURIED MORE THAN A MILE UNDERGROUND WAITING TO BE PRODUCED
According to Baker Hughes, 466 of the 1,038 drilling rigs currently running in the United States are located in the Permian Basin of West Texas and Southeast New Mexico.
The basin generates 3.5 Million barrels of oil per day. But oil & gas is not the largest byproduct to come from this basin. These same wells produce up to 10 X that amount of water every day.
In some parts of the play, a single oil & gas well can produce up to 10,000 barrels of water per day or more especially during frac flowbacks. This massive wave of waste water accounts for $3.6 Billion in annual disposal revenue for area saltwater disposal wells.
OIL & WATER
According to the Energy Information Administration (EIA), 42,000 new wells are expected to be drilled and completed over the next 5 years. Total oil production in the Permian is projected be 5.4 Million barrels of oil per day by 2023, more than the total production of any OPEC country other than Saudi Arabia.
The average frac-job generates 100k+ barrels of wastewater "flowback" per well completed. This requires 1,000 truckloads to be hauled off to nearby saltwater disposal wells. Each new oil & gas well completed can potentially generate $50,000 in disposal revenue or more.
WAVE OF WATER
Producers in the Permian Basin currently generate more than 1,000 Olympic sized swimming pools of saltwater every day. Total water management costs are up to 50% of a well’s total operating expense. Water is by far the largest byproduct by volume, generated from oil/gas operations. For every 1 barrel of oil produced, up to 10 X that volume is waste water which is trucked or piped to nearby disposal wells. The Permian basin produces 15-25 Million barrels of water per day (BWPD) and is expected to increase to possibly 50 Million by 2023
WATER PRODUCTION IN THE PERMIAN
by some of the largest US oil producers in barrels per day
THE PERMIAN'S FUTURE
THE SALTWATER DISPOSAL INDUSTRY IS PROJECTED TO GROW TO $4.6 BILLION BY 2023
NEW OIL & GAS WELLS ARE PROJECTED TO BE DRILLED AND COMPLETED OVER THE NEXT 5 YEARS ALONE