This is a jam packed edition of the water weekly digest. You’ll find tons of interesting news in the sector below. In fact, this may be one of the biggest issues in the 3+ year history of this publication!
Upcoming Events (please join us and your peers there!):
- July 29 – [Westin, Pittsburgh] Marcellus-Utica Shale Water Business Update
- October 5 – [Houstonian Hotel, Houston] 4th Annual Oilfield Water Industry Update
Now, here is this week’s industry news & analysis…
State of Emergency: Entire City of Odessa without water
Odessa Mayor Javier Joven said he is working with other city and county leaders and may soon issue a “State of Emergency” amid an ongoing water outage that is impacting the entire city.
OWC NOTE: Headlines like this in the Permian make the community more sensitive to all things water, including oilfield water. This is the biggest about headline water in the Permian Basin that we've seen in recent memory (i.e. years).
UPDATE: Odessa water treatment plant back on, charging system
The system recharge could take 12-14 hours to complete...
Governor Abbott Directs State Agencies To Coordinate Response To Water Main Break In Odessa
Governor Abbott directed state agencies, through the Texas Division of Emergency (TDEM), to coordinate and deploy resources in response to a disaster declaration issued by Ector County Judge Debi Hays resulting from the City of Odessa main water line failure currently impacting approximately 165,000 Texans in the area.
Oilfield Steps Up: Distribution Now Responds To Odessa Water Crisis
After a water main broke this morning in Odessa, Texas affecting more than half of the city (including the Medical Center Hospital and NICU unit), the DNOW PVF+ Center team in Odessa reached out to the city to find ways they could assist. So, they loaded up pallets of clean drinking water and headed over to the hospital.
Goodnight Midstream Announces Closing of Private Placement, New Revolving Credit Facility
Goodnight utilized the proceeds to refinance existing indebtedness and intends to use the added liquidity to drive growth, expand its footprint and enhance the integrated saltwater management solutions it provides to oil and gas producers.
Matador Resources Announces Strategic Acquisition of Midstream Assets in Eddy and Lea Counties, New Mexico
MTDR announced that one of its wholly-owned subsidiaries has entered into a definitive agreement with a wholly-owned subsidiary of Summit Midstream Partners, LP (“Summit”) to acquire Summit’s Lane Gathering and Processing System (the “Lane G&P System”) in Eddy and Lea Counties, New Mexico for $75 million...
Seneca Resources Water Milestone
Seneca Resources is among the first oil and gas operators to achieve Project Canary's Freshwater Verified Attribute using a new metric designed to measure and mitigate the effects of operations on local water resources.
Natural Gas, Oil Players See Potential Financial and ESG Payouts from Lithium
More than a new source of revenue, extracting lithium from produced water could allow natural gas and oil industry players to achieve environmental, social, and governance (ESG) goals, informed sources (including our Oilfield Water Connection!) told NGI.
Research Sheds Light on Lithium-rich Brines in Shale Plays
As the energy transition pushes the world to decarbonize and slow climate change, demand for rechargeable batteries that power electric vehicles is expected to surge.
B3 Insight Announces Completed Pilot of Oilfield Water Stewardship Council WaterSage Certification
B3 Insight’s certification product provides an opportunity for oilfield companies to quantify environmental de-risking and advance water stewardship. The WaterSage Certification is expected to be available September 30, 2022.
High Oil Prices Influence Treatment Trends
With the price of oil at record highs, why take any deduction when you can sell it at full price.
Do you know any companies that rent produced water coolers? Hibernia needs to cool about 30,000 barrels a day probably 10 to 15°.
Now Contested, A Big Water Diversion Project In The Delaware Basin Is Worth Watching
The Pecos County Water Improvement District No. 3 sent the TCEQ a letter requesting a public meeting and contested case hearing on an important water midstream firm's water use permit application.
3.5 billion gallons and counting...
Surge Energy America has a long track record of using recycled produced water for fracking as demonstrated by the conservation of over 3.5 billion gallons of freshwater since they initiated the practice in 2017 from their legacy Moss Creek oilfield. Now they are expanding this practice to the acreage Surge Energy acquired in 2021....
Biden Pens Letter To Refiners Complaining About High Margins...
“Since the beginning of the year, refiners’ margins for refining gasoline and diesel have tripled, and are currently at their highest levels ever recorded,” Biden wrote.
...Biden’s To Visit Saudi Arabia To Ask For More Foreign Oil
President Joe Biden’s visit to oil-rich Saudi Arabia might heal frayed US ties with the kingdom, but it’s unlikely to resolve the energy crisis plaguing the global economy.
Natural gas falls prey to Biden's war on the energy grid
Improvements in the nation’s natural gas infrastructure are getting more difficult as President Joe Biden wages war against the United States’s energy grid . Regulatory burdens have plagued new pipelines and shale fracking operations under previous administrations, and Biden is intentionally making it worse.
NextMart, Inc. - Planned Acquisition of New Mexico Water Rights
NXMR would like to announce that its wholly-owned subsidiary, Emco Oilfield Services, LLC (“Emco”), has launched an acquisition program of New Mexico water rights to expand its water capacity for own water stations in the Permian Basin.
Engineers develop method that can recycle water used in fracking and drilling
Engineers at the University of Pittsburgh Swanson School of Engineering are developing a new way to reduce the environmental impact of drilling and fracking by cleaning the produced water for reuse, and it's already being tested in Pennsylvania, Texas and North Dakota.
Permian DUCs Are NOT A Concern For Frac
EIA data out this week claims that Permian DUC backlog is at a five-year low. On the contrary, our data shows a healthy level of DUCs in inventory for Permian E&Ps to complete.
$1.9 billion oil and gas merger targets Permian Basin amid growing energy prices
Desert Peak Minerals and Falcon Minerals announced their plans to combine in January, bringing the new company’s holdings to 139,000 acres with 105,000 acres in the Permian. The company, now known as Sitio, expected to produce up to 14,000 barrels of oil per day in 2002.
WATER TALENT POOL: Aris Water Solutions, Inc. Announces CFO Transition Plan
Chief Financial Officer Brenda R. Schroer will conclude her role with the Company during the second half of this year. Ms. Schroer plans to remain in her current role until a successor is named, at which time she will continue with the Company to support the new Chief Financial Officer until her departure date of December 30, 2022.
Interns learn about water reclamation process in Midland
A group of college interns got to tour a Midland facility Thursday. The facility treats wastewater to repurpose it and help reduce the amount of drinking water used by Pioneer and other places.
WATER TALENT POOL: Richeson To Rockwater
T.J. Richeson is starting a new position as Region Director for Rockwater Energy Solutions.
WATER TALENT POOL: Elaine Mattos Leaving Fairfield
"Yesterday was the end of my three years journey with Fairfield Geotechnologies. While I’m happy to be moving on to a new challenge ..."
Macro Meltdown, But The Oilfield May Be Best House In Bad Neighborhood! [Charts Of The Day]
Capital allocators have a tough job right now as the public equity market focuses singularly on macro risk: inflation is terrible, more Fed rate hikes are coming, and recession fears loom large. Energy stocks are not being spared in this indiscriminate selling. However, energy capital investments – specifically in “traditional” energy (like oil / gas) and especially oilfield service – seem like a relatively safe haven. Fundamentally speaking.
Commodore Midstream Comments On Pipeline Projects
"We will soon begin the construction of both a 5.3 mile pipeline and a 10 mile pipeline to better serve our customers and their area in Martin County."
Ohio Oil and Gas Association Releases Community Sustainability Report
According to the report, exploration of eastern Ohio’s Utica shale has fueled an increase in oil and gas production across the state while cutting emissions of greenhouse gases.
Energy Transfer Pipeline June 21 Hearing Set on Criminal Charges
A June 21 preliminary hearing is set in a Pennsylvania court related to 48 criminal charges filed last year against pipeline builder Energy Transfer for allegedly allowing thousands of gallons of drilling fluid to escape, on repeated occasions, during construction of the $2.5-billion Mariner East 2 natural gas liquids pipeline.
Webinar: Evolution of Water Use in the Permian Basin
In this SPE Tech Talk, Coby Reynolds, Director of Water Treatment at TETRA Technologies, discusses how different E&Ps and midstream companies manage produced water and how it will impact the market in coming years.
Colorado companies' drilling plans for 101 oil wells approved by Colorado regulators
Large project plans in rural Weld Co. show oil and gas development can adequately protect environment, regulator says.
Water company fined $1.2M for sewage discharge in New Mexico
SANTA FE, N.M. (AP) — The New Mexico Environment Department announced Thursday that it has fined El Paso Water $1.2 million for allegedly discharging more than 1 billion gallons of raw sewage into the Rio Grande in Sunland Park.
North Dakota landfill OK'd for radioactive oilfield waste
BISMARCK, N.D. (AP) — North Dakota regulators approved a permit for a landfill near Williston that aims to become the state's first to accept radioactive oilfield waste.
Water Eye Candy
"Good start to the week in North Dakota, off to California for another."
Shale E&P Capex Follow Up – A Forward Thinking Data Update
Notably, we estimate the public E&Ps are on pace to spend approximately half of their current 2022 budget guidance in the first half of the year. That means if they continue raising spending guidance as we expect over the next 90 days, then actual 2022 spending will be 2nd half weighted with as much as 55-58% of public E&P dollars spent falling in 3Q and 4Q this year.
Energy security must be top priority for all western democracies
Leaders should not vilify an industry that is providing the technologies of today and into the future that will allow our nation, and that of our allies, to be energy secure, and support our national and economic security.
GOP hopes wins in 2022 general election can strengthen defense of oil and gas in New Mexico
U.S. Rep. Yvette Herrell (R-NM) said she hoped the Republican Party could take back a majority in Congress following 2022’s general election and would then begin the work of reducing regulatory burdens she said encumbered the industry’s growth.
Ohio researchers find gaps in regional air quality monitors
Researchers deployed their own local air monitoring systems in highly fracked areas of Ohio and found that the U.S. EPA’s regional air quality monitors often miss variations in pollution at the local level.
International: Water and Colombia’s Oil and Gas Industry
Columbia’s oil and gas industry, which has seen declines in recent years, is booming again. With droughts plaguing the country, there’s a corresponding demand for wastewater treatment to turn brackish produced water from oilfields into water that’s safe for discharge, irrigation, and oilfield operations.
It's official!! Katch Kan Ltd & Hydra International Ltd have entered a strategic JV partnership to provide Full Environmental Protection from wellhead to the edge of location & beyond.