12/5/2023 0 Comments Bastion technologies denver![]() ![]() Multi-well pad developments also may result in a higher concentration of produced water in a single geography. However, growing volumes are flowing back to the surface as demand increases for enhanced completions. Produced water is injected into saltwater disposal wells or treated. “Water management in the Permian is becoming more expensive, in addition to slower permit approvals and the prospect of additional regulations.” “Without adequate investment and planning, produced water threatens to lower Permian production potential, as it can shift the entire Permian cost curve,” Duman said. With low breakevens and favorable margins, exploration and production (E&P) operators have rapidly increased oil production, leading to a growing strain on Permian infrastructure, which has resulted in the growing challenge of how to source water and what to do with the produced water. ![]() He spoke recently at the Unconventional Resources Technology Conference in Denver. For scale, this amount of water could cover over 8,000 football fields with a foot of water, each and every day.”įinding outlets for produced water is important as growing volumes and expanding costs pose risks to production growth in the Permian, according to Wood Mackenzie’s Ryan Duman, a senior analyst who covers the Lower 48. only produces about 15 million bbl of petroleum liquids each day, you can see that oilfield water production outpaces oil production by more than 4-to-1 on a national basis. produced water market today is estimated at 50 million barrels a day. Raymond James analysts estimated in July that the U.S. Disposal and treatment costs for water typically run around $1.00/barrel, which means there is a $12 billion market in the Permian alone, which has more than 60% of the country’s produced water.Īppalachian operators also see big potential for produced water services. The produced water market in the United States may reach 4 million barrels/day by 2025, analysts said. oil production continues to grow, so will produced water, offering substantial market opportunities as operators look for ways to reuse or dispose of the dirty water, according to Raymond James & Associates Inc. No financial details were provided.Īs U.S. In addition to the ongoing buildout to accommodate Sabalo, H2O is adding daily recycling capacity of 40,000 barrels, with the option to expand to 80,000 over time.Ĭoncurrent with the Sabalo acquisition, H20 private equity sponsor EIV Capital and co-investors increased their equity commitment, allowing H20 to pursue additional growth opportunities throughout the Permian. The acquired assets would give H2O’s combined system 435,000 barrels/day of disposal capacity, 240,000 barrels/day of deep disposal permits and 190 miles of pipeline. ![]() The Sabalo system is already connected to H2O’s produced water gathering network. “As a result of this transaction, Sabalo has secured a long-term partnership to gather all of its produced water via pipe and the optionality to scale up produced water recycling operations to meet the needs of an aggressive completion schedule in the future,” Sabalo CEO Barry Clark said. Its oil and gas assets are concentrated in Howard County. Sabalo, a private independent sponsored by EnCap Investments LP is headquartered in Corpus Christi, TX. ![]()
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