Tag Archives: wastewater of fracking wells

The Dangers of Manic Oil Production

In a desolate stretch of desert spanning West Texas and New Mexico, drillers are pumping more crude than Kuwait. The oil production is so frenzied that huge swaths of land are literally sinking and heaving. The land has subsided by as much as 11 inches since 2015 in a prime portion of the Permian Basin, as drillers extract huge amounts of oil and water, according to a Wall Street Journal analysis of satellite data. In other areas where drillers dispose of wastewater in underground wells, the land has lifted by as much as 5 inches over the same period. Alongside crude, oil-and-gas companies are extracting gargantuan amounts of subterranean water—in the Delaware, between five and six barrels of water are produced, on average, for every barrel of oil. To dispose of it, they inject billions of barrels of putrid wastewater into underground disposal wells.

The constant extraction and injection of liquids has wrought complex geologic changes, which are raising concerns among local communities long supportive of oil and gas. Earthquakes linked to water disposal have rattled residents and prompted state regulators to step in. Some researchers worry that wastewater might end up contaminating scarce drinking-water supplies

Excerpts from Benoit Morenne and Andrew Mollica, Permian Oil Extraction Lifts and Sinks Land, WSJ, Apr. 29, 2024

Leave No Oil Under-Ground: OPEC against US Frackers

In 2014-16, the OPEC waged a failed price war to wipe out American frackers. Since then the cartel and its partners, led by Russia, have propped up oil prices enough to sustain shale, but not enough to support many members’ domestic budgets. In March 2020 Saudi Arabia urged Russia to slash output; Russia refused, loth to let Americans free-ride on OPEC-supported prices. The ensuing price war was spectacularly ill-timed, as it coincided with the biggest drop in oil demand on record.  The desire to chasten American frackers remains, though. OPEC controls about 70% of the world’s oil reserves, more than its 40% market share would suggest… If the world’s appetite for oil shrinks due to changing habits, cleaner technology or greener regulations, countries with vast reserves risk having to leave oil below ground. 

Excerpts from Crude Oil: After the Fall, Economist, June, 13, 2020

An Epiphany Moment: useful waste-water

Fledgling companies, many backed by private equity, are rushing to help shale drillers deal with one of their trickiest problems: what to do with the vast volumes of wastewater that are a byproduct of fracking wells.

When producers blast a mix of water, sand and chemicals to release oil and gas from rock formations miles underground, they not only unlock oil and gas, but also massive quantities of briny water long buried beneath the surface. Drillers in the Permian Basin in New Mexico and Texas currently generate more than 1,000 Olympic-size swimming pools full of this murky, salty water every day. Handling it amounts to up to 25% of a well’s lease operating expense, according to analysts.

Investors have expressed interest in this corner of the U.S. shale industry as oil production in the Permian soars to record levels. Analysts said the region could produce more than five million barrels of oil a day by 2023, more than the current daily production of Iran.

Sensing a chance for a big return, private-equity firms have invested more than $500 million into wastewater-disposal companies such as Solaris Water Midstream LLC, WaterBridge Resources LLC, Goodnight Midstream LLC and Oilfield Water Logistics LLC. There are roughly a dozen of these water-focused companies that analysts said could each be worth hundreds of millions of dollars.

These companies are building pipelines to transport the wastewater and dispose of it deep underground, hoping to displace the trucks that currently do the job. Some companies have a longer-term plan: recycling the wastewater to sell it back to drillers to reuse. Most of the companies are currently private;….

Apache Corp. , one of the largest producers in the Permian, wants to reuse more water to reduce the millions of barrels it must dispose of and limit the freshwater it purchases for fracking, according to a company presentation earlier this year. Apache recycled more than 22 million barrels of water from 2013 to 2016 in just one subsection of the Permian.

Excerpts from The Next Big Bet in Fracking: Water, WSJ, Aug. 12, 2018