Tons of news flow in the shale water sector today including plenty of coverage on quakes/geysers/abandoned wells plus news about people on the move, deals, a TX/NM PW dispute, carbon capture overlap with disposal, and positive macro trends.
The best place to discuss all this with your peers is at our fast approaching 2nd Annual Oilfield Water Markets Conference March 9-11, 2022 at The Hyatt Regency in Dallas. On that front, two quick updates before today’s news digest:
- We’re Teaming Up With Permian Basin Water Management Council (PBWMC) On The Event! PBWMC will host a private meeting on-site during our 2nd Annual Oilfield Water Markets Conference coming up March 9-11, 2022 in Dallas. The concurrent nature of the two organization’s events will enhance the networking experience for all attendees at the main event – PBWMC is a highly respected working group comprised of top E&P operators and water supply chain firms. PBWMC participation combined with the 3-day conference’s timely agenda, senior industry speakers / attendees, and B3 Insight’s co-located Ripple Effect Summit makes this conference in March 2022 the ‘must-attend’ event in U.S. oilfield water management this year. read more>
- Early Bird Cutoff Reached, But There’s Still Time To Get The Best Rate. The conference has surpassed the attendance level where early bird pricing expires (>150 attendees are confirmed, on pace to >300). However, early bird registration is being extended one more week to give more folks a chance to get in before pricing escalates to the general registration rate. The very best time to signup is now if you plan to join your peers in March (you can still get the best rate and also see how the conference has come together with top tier speakers, sponsors, and delegates)! details and registration link>
Now here is this week’s industry news…
Permian Basin Water Management Council To Host Member Meeting On Site During 2nd Annual Oilfield Water Markets Conference In March 2022
PBWMC participation combined with the 3-day conference’s timely agenda, senior industry speakers / attendees, and B3 Insight’s co-located Ripple Effect Summit makes this conference in March 2022 the ‘must-attend’ event in U.S. oilfield water management.
7 Key Oilfield Water Themes In 2022
The Infill Thinking team is looking forward to participating in the IN-PERSON 2nd Annual Oilfield Water Markets Conference this March 10-11 along side over 300 of the industry’s movers and shakers. Here they think through 7 key themes to learn about at the event...
OWL & Z&T Cattle Company Engage In Contentious NM / TX Water Dispute, Sergio Chapa Reports
Is producer water from oil and natural gas wells in New Mexico being injected underground at Texas disposal sites? That was a topic of discussion at Tuesday morning's Railroad Commission of Texas meeting where the agency approved three saltwater disposal sites in Loving County from Oilfield Water Logistics, or OWL. Pecos-based Z&T Cattle Company alleged in a filing that the OWL sites will be used to dispose of wastewater from oil and natural gas wells in New Mexico and that it was not in the public interest for Texas to approve the sites. OWL replied in a filing that's "a naked allegation, unsupported by evidence" and that the wastewater for the sites will come from an expansion of EOG Resources drilling on the Texas side.
Enerflex to buy Exterran in all-stock deal valued at $735M
Enerflex says it will acquire the company in an all-stock transaction that values Exterran at ~$735M, an 18% premium to Exterran's enterprise value as at January 21. The company will operate as Enerflex Ltd. and will remain headquartered in Calgary, Alberta, Canada.
Native American tribe, New Mexico ink water leasing deal
A Native American tribe has agreed to lease more of its water to help address dwindling supplies in the Colorado River Basin, officials announced Thursday.
Water: The Biggest Challenge and Opportunity for Operators
"Over the last several years, management and treatment of produced water in North American unconventional oil and gas fields has undergone significant changes," Steve Coffee writes.
March 10-11, 2022 Conference GOLD Sponsor Spotlight: Lagoon Water Midstream
Lagoon Water Midstream, headquartered in Oklahoma City, is a premier water management solution, developing and operating water infrastructure in the Anadarko and Midland Basins. The company provides reliable water sourcing, recycling, and produced water takeaway solutions through a network of over 250 miles of underground water pipeline and more than 20 disposal wells. Lagoon was the first Oklahoma company to provide commercial water recycling services to oil and gas producers in the state, thereby reducing the burden on freshwater resources. Lagoon's customer-centric focus is responsive to operators' needs to reduce lease operating costs, improve capital efficiency, and execute on ESG initiatives.
Earthquakes. Drought. Geysers. Permian oilfield water woes pile up in west Texas
Fracking one barrel of oil in Texas can produce 10 times as much wastewater – and the region’s started running low on cheap options for handling that toxic water, with one disposal tactic recently linked to a spate of earthquakes. Some hope to turn this contaminated flood into a hot commodity.
WHAT LIES BENEATH: Long-Forgotten Wells, Brine Water, and the Health of West Texas Aquifers
The landscape is changing in Crane County because of well blowouts. The latest blowout produced enough pressure to shoot brine water over 100 feet into the air.
The Mystery of the West Texas Geyser Deepens
Turns out the Permian Basin well that's been blowing briny water 100 feet high isn't the well the Railroad Commission thought it was.
RRC and PBPA studying impacts of deep water injections and earthquakes
The RRC and PBPA met with officials from Midland and Odessa to explain why ending deep water injections might be the best course of action to lessen the number of earthquakes.
New Mexico Seismicity Response Protocol and Seismic Forms & GIS Layers.
Sourcenergy points out a helpful reference from NM Energy, Minerals and Natural Resources Department...
Abandoned oil well counts are exploding — now that there’s money on the table
$4.7 billion released by the Bipartisan Infrastructure Law has states rethinking their abandoned oil well tallies.
Column: Industry’s Response to Earthquake Concerns in the Permian Basin
Here’s a closer look at recent seismic activity in the Permian Basin and how the oil and gas industry is responding.
Houston Chron Editorial: Permian earthquakes should jolt Texas officials into action on shale drilling
More earthquake attention and opinions...
Halliburton Frac Is “Sold Out”; Net Pricing Ticking Higher
Halliburton’s 4Q21 conference call on Monday morning kicks off pressure pumping earnings season. And the largest pressure pumper is sold out...
WATER TALENT POOL: Phillip Douget Named VP Permian Basin At New E&P, Blue Ox Resources
Congratulate Phillip for starting a new position as Vice President and General Manager Permian Basin at Blue Ox Resources, LLC when you see him at our upcoming event in March 2022, where he will be speaking!
WATER TALENT POOL: Jason Schumacher To O'Melveny & Myers LLP
Jason Schumacher, a speaker at our recent events, has started a new position as Partner - Oil, Gas, Energy and Transactional Attorney at O'Melveny & Myers LLP at O'Melveny & Myers LLP. He was previously at Locke Lord for 7 years...
WATER TALENT POOL: Aureus Hiring Water Treatment Technicians In Permian
Multiple water openings across Permian at the company...
Letter: The produced water challenge
Letter commending/encouraging the Produced Water Consortium to fulfill its mission.
Will U.S. crude production return to pre-pandemic highs? Conoco, Oxy CEOs disagree
The chief executives of the nation’s two largest independent oil companies disagree on whether U.S. crude production will return to the record set before the pandemic-driven oil crash.
NextMart, Inc. - Acquisition of Oil Field Services Company
NextMart, Inc. has acquired controlling interest in Emco Oilfield Services, LLC, a New Mexico limited liability company, based out of Carlsbad, New Mexico ("Emco"). Emco has provided the following oilfield services: salt water and fresh water hauling, hydrovac services, pressure control and flowback, solids control, drilling cuttings removal and disposal, oilfield construction, tank/pit cleaning, rig and tank steam cleaning, hotshot delivery, winch truck heavy hauling, and frac tank rentals.
Where Would $85 Oil Put The Frac Fleet Count In 2023? [Chart Of The Day]
While some uplift is observed this year, the big change in growth trajectory happens in 2023, where OFS would feel like boom times if oil stays flat at $85.
Vandalism incident causes release of produced water
A vandalism incident in which valves were left open on location resulted in the release of 18,270 gallons of produced water released at an oil and gas well near Watford City on Sunday.
California Fears Earthquake Swarm From Lithium Mining Activity?
The State of California is developing a new regulatory framework to accelerate private investment to extract lithium from geothermal wells with deep re-injection into a hot, brine aquifer next to the Salton Sea. The area is directly over the San Andreas fault.
O&G Industry Questions Casual Link Between Seismicity, Deep Injection
"There is actually no consensus on deep injection being the broad cause. Also, not all deep (and even shallow) injection is created equal, writes Justin Love." You can hear Justin speak at our upcoming event March 10-11 in Dallas!
'The Power of Capitalism' - Larry Fink's 2022 Letter To CEOs Is Relevant To Water Management Firms...
"We focus on sustainability not because we're environmentalists, but because we are capitalists and fiduciaries to our clients."
Water Desalination Report: Earthquakes Spur Interest in Recycling
"Tom Pankratz, author of the Water Desalination Report published by Global Water Intelligence, does a great job here of summarizing the recent seismic activity in the Permian and explaining how beneficial reuse could play a role in decreasing the risk of injection-induced seismicity," Laura Capper writes. You can hear Laura's latest thoughts at our event coming up March 10-11 in Dallas!
Chesapeake beefs up shale gas play with $2.5 bln Chief E&D deal
Chesapeake Energy Corp (CHK.O) said on Tuesday it will buy privately held oil and gas producer Chief E&D Holdings LP for about $2.5 billion expanding its position in the gas-rich shale plays of the U.S. northeast.
Biden Administration Sets Framework to Fund $4.7B US Orphan Well Cleanup
Federal task force will prioritize abandoned oil-gas wells that pose most risk to environment, public health
Produced Water Treatment Using Microalgae
"As the volume of produced water continues to increase, it becomes even more critical for us to find more efficient and sustainable ways to treat it," Steve Coffee writes...
2022 is shaping up to be a very interesting year for the Oilfield Water segment....
What are the challenges industry participants are facing? What solutions are available? How are the capital markets responding? What can we do better regarding ESG? How can we position ourselves to attract more growth capital? Will this seismicity affect our business going forward? All of these questions and more will be addressed at the upcoming 2nd Annual Oilfield Water Markets Conference on March 10-11 in Dallas TX.
North Dakota regulators approve carbon capture storage plans
North Dakota regulators approve underground storage plans for a proposed $1 billion carbon capture project at a major coal plant.
Tallgrass to Develop a Commercial-Scale CO2 Sequestration Hub in Wyoming
Wyoming Energy Authority Awards Tallgrass Matching Grant for Hub Development
Alarm failure causes release of produced water
The North Dakota Oil and Gas Division was notified of a release occurring on Thursday at the CPEUSC Sonny 25 saltwater disposal, about 11 miles northwest of Epping.
Saltwater spill reported in Williams County
More than 33,000 gallons of highly concentrated salt water spilled at a disposal well site operated by the Canadian company Crescent Point Energy.
Permian Oil Output Hits Record
Crude oil production in the Permian shale play reached a record-high last month, averaging 4.92 million bpd, the Energy Information Administration reported in the latest edition of its Drilling Productivity Report.