Oilfield Water Weekly
Wednesday September 29, 2021
In less than two weeks, the US onshore produced water business community will gather again. Next Friday at the Houstonian Hotel. we host the 3rd Annual Oilfield Water Industry Update.
To all newsletter readers who are registered, thank you for joining what is shaping up to be a tremendous industry event.
Here’s a quick update on the guest list:
- 150+ attendees have already registered, filling 85% of our available capacity
- Reps from E&Ps comprising over 1/3rd of US public E&P capex spending will be in the room
- A dozen plus E&P companies plan to attend
- Nearly every water midstream company that matters (from small to large) is sending representatives
- The midstream firms attending this event together handle the vast majority of third-party-managed produced water in the southwestern U.S.
- High quality suppliers, professional service firms, and innovators will also be there
- With an agenda like this and the “who’s who” of the industry coming, our few remaining seats are going fast…
If you don’t want to miss out, last minute registration is still possible online here. It’s likely there will be a waiting list by the event day, but if seats don’t completely sell out in advance, we will be equipped for onsite registration. We’ll provide an update on capacity in the next newsletter, which will be sent two days before the event. We look forward to productive discussion and networking with oilfield water industry colleagues.
And now this week’s news…
US oil hits 7-year high after Opec+ resists calls to accelerate production, the FT writes...
Natural Gas Up!
US natural gas prices jump 9.5 percent to highest since 2008...
Texas’ seven-day average for “new cases” has dropped by nearly half in the last two weeks. The positivity rate for the State’s date of specimen testing has also begun moving dramatically down in the last week. Hospitalizations in Texas also turned down dramatically in the last week of September. As of September 30, hospitalizations were down to 8,663 from just under 14,000 in late August and are now falling about 300 per day. Yesterday, hospitalizations fell below 8,000 for the first time since August 4. That is a 40% drop in a month.
MRT: Curtailing injection volumes could have wide-ranging impact
B3 Insight estimates that the request by the Railroad Commission for 29 operators of 76 disposal wells in the Midland Basin to reduce daily injection volumes to 10,000 barrels per day could slash disposal capacity in the Midland Basin by 55 percent.
Even The Rocks Are Stressed These Days: Seismic Activity In The Permian Basin [B3 Insight Post]
This is the first of a multi-part series from B3 on the relationship between seismicity and the water management business. The series starts here with a current understanding of the mechanics behind induced seismicity related to fluid injection and the current state of seismic activity in the Permian Basin.
Layne Midstream Acquisition Of E&P Water Assets
"We recently acquired produced water assets from a leading Permian operator and upgraded the facilities to enhance safety, capacity, and reliability to bring additional water onto the system," the company stated in a post this weekend...
Oilfield Water Deal Flow Is Heating Up [Chart Of The Day]
Deals involving oilfield companies that manage the water molecule are picking up after some slow quarters.
Select Energy Gains 7% As Acquisition Of Agua Libre Midstream Concludes
Shares of water management and chemical solutions provider to the oil and gas industry, Select Energy Services, Inc. (WTTR) are rising more than 7% Monday morning on the news of closing of acquisition of Agua Libre Midstream, LLC and certain water-related assets and operations from Basic Energy Services, L.P, effective October 1.
Global Infrastructure Partners Announces Preferred Equity Investment in Easton Energy
Global Infrastructure Partners ("GIP") announced that it has made a preferred equity investment of up to $245 million in Easton Energy LLC ("Easton"). Easton is a Houston based midstream company focused on developing infrastructure assets...
Energy Infrastructure Companies Could Fill an Important Void
Consider the ongoing drought scenarios in the western U.S. and the elevated needs for water infrastructure. Put simply, states such as Arizona, California, and Nevada are contending with lengthy droughts, but demand for water in those states isn't declining. Other states could help out if there were viable options for moving water from state-to-state. Enter the pipelines currently operated by some ENFR member firms.
Basin Water Resources, LLC Enters into Partnership with AFCO 360 to Expand Services in Louisiana
Basin Water Resources, LLC (BWR) today announced the signing of an exclusive agreement with AFCO 360, LLC (AFCO). The collaboration combines AFCO's market leading service and wastewater solutions with BWR's established Filtration and Separations Packaged Systems and Mobile Water Services to help customers better manage full life cycle industrial water treatment.
Pressure Pumping Pricing Premonition – The Pendulum Is FINALLY Swinging Back To The Pumpers
For most of 2021, net pricing in frac services has been elusive despite the frac crew count climbing higher – it’s been a priceless recovery with pumpers receiving very little price gain outside of cost inflation pass throughs. An inflection point is close though.......
E&P M&A: ConocoPhillips reportedly offering acreage for $500M
When ConocoPhillips announced its plan to buy Shell's Permian business for $9.5 billion, the company said it would sell off $4 billion-$5 billion of other assets in the next two years.
E&P M&A: Earthstone Energy Announces Bolt-On Acquisition
The aggregate purchase price of the Bolt-On Acquisition is approximately $73.2 million..
E&P M&A: Cimarex Takes Over Cabot, Merged Co. Called “Coterra Energy”
On Friday the company was merged into Cimarex Energy with Cabot’s CEO Dan Dinges taking on the largely ceremonial role of “Executive Chairman” while Cimarex’s CEO Tom Jorden becomes the actual leader (CEO, President, Director) of the newly merged company, now called Coterra Energy, Inc.
Texas Standard: An abandoned oil well springs back to life, throwing one West Texas rancher into a battle over her land’s future
In the Permian Basin, thousands of oil and gas wells fill the landscape, and today some of that aging equipment is bursting and leading to uncontrolled leaks.
From Bad To Worse For Eagle Ford Sand Buyers…
The Eagle Ford frac supply chain is experiencing the worst sandemonium it’s seen since the big freeze in February 2021.
Can SCOOP/STACK Get Its Mojo Back?
The recovery in many leading production areas outside the Permian has been short-lived. Production in the Bakken has stayed close to flat lately, and output in the Eagle Ford has been slipping. The same is true in SCOOP/STACK, which only a few years ago was hailed as maybe the next big thing. What happened? And is there hope for a comeback?
Water 101: Understanding Oklahoma's rural water systems
Clean and safe water for drinking and household use is one of life’s necessities, but some residents served by Oklahoma State University Extension struggle to access the vital resource.
Aureus Energy Services Announces Commissioning Of New Recycling Plant
"Our newest produced water recycle plant is up and running using our proprietary Zero Atmosphere system to clean, recycle and reduce fresh water consumption in the Delaware Basin," the company stated.
Texas regulator restricts produced water disposal
In a bid to tackle induced seismicity in the Permian Basin, the Texas Railroad Commission has restricted the injection of produced water into saltwater disposal wells in a highly important 250-square mile area between the cities of Midland and Odessa.
Upcoming Webinar: ESG Sustainability Metrics Part 2: Water Management and Recycling
Thu, Oct 21, 2021 9:30 AM - 10:15 AM CDT Just a heads up that this webinar looks like it might be "sales pitchy" but it also might be worth joining for those folks interested in software solutions on water management.
Antero Midstream Publishes 2020 ESG Report and Reiterates 2025 Environmental Goals
Brendan Krueger, CFO of Antero Midstream said, "From the start, Antero Midstream has focused on minimizing our operational and environmental footprint in our communities. This commitment led us to construct the largest water pipeline system in Appalachia, eliminating 32 million miles of truck traffic from local roads in 2020.
RRC Crackdown Response?
Brett Davis writes: "Curious if conversations have spiked recently about water recycling/ reuse, evaporation methods or storage solutions?"
WVO to offer safe drinking water workshop in Clarksburg
The event is scheduled for 10 a.m to noon Saturday, Oct. 30 at the Parks and Recreation Building, 43 Recreation Drive, in Clarksburg. Sponsored by the Equitrans Midstream Foundation, workshop participants will learn about public and private water supplies and mitigation tactics, how to inspect and maintain private drinking water sources, and how to test their own water regardless of the source.
Hess Midstream LP Announces Upsizing and Pricing of Secondary Public Offering of Class A Shares
The gross proceeds from the sale of Class A shares by the Selling Shareholders are expected to be approximately $195,000,000. HESM will not receive any proceeds from the sale of Class A shares in the offering. The offering is expected to close on October 8, 2021, subject to customary closing conditions.
Gas Markets Will Get Even More Exciting
WSJ: The cleaner-burning fuel is at the heart of the energy transition, but its price volatility is likely to only get worse
OPEC Opts Against Big Output Boost, Pushing Oil Prices to Seven-Year High
Cartel and Russia-led group had previously said they would add about 400,000 barrels a day each month through next year
Judge OKs $20 million civil settlement for record oil field spill near Williston
Afederal judge has signed off on a $20 million civil settlement over the largest oil field spill in North Dakota history.
Produced water spill reported in Williams County
Oasis Petroleum North America, LLC, recently notified the North Dakota Department of Environmental Quality that a produced water spill occurred on Oct. 3 at a saltwater disposal facility they operate in Williams County.
Tribune editorial: Oil settlement should fund spill prevention
The Tribune editorial board believes the company got off easy.
Rise in New Mexico Earthquakes Likely Triggered by Oil Industry
Wastewater injection wells are believed to be behind the significant increase in seismic activity.
How Not to Do an Energy Transition
Power markets vary, but Britain’s latest troubles hold some lessons for countries focused on decarbonization