Permian Basin water disposal volumes are predicted to double within two to three years, putting a strain on existing and planned water management infrastructure, according to a new report from industry analysts at Wood Mackenzie.
Oil companies will face new challenges in water sourcing and disposal in arid western Texas and southeastern New Mexico, the report predicted.
“Even with 100 percent water reuse in completions, which is unlikely, existing saltwater disposal infrastructure is expected to hit capacity in the near future,” said Matthias Bloennigen, a director of upstream consulting at Wood Mackenzie.
“Despite increasing interest from private equity, there is still a huge need for water infrastructure,” he said. “Oil companies and their investors must understand the factors at play in the Permian before they invest.