Lots of news to digest in the weekly summary below – the macro tape is getting very interesting with public E&Ps (especially the majors) under big pressure to get out of hydrocarbons even as crude oil prices feel like they are picking up some serious momentum here into 2H21.
To those of you that have already secured your pass to our one-day conference at the Houstonian this October 15th – thanks for registering early and we’ll see you there! We’ve begun discussing some fascinating topics with industry insiders for panels that can’t be heard anywhere else, but will have a big impact in the water market going forward…
A friendly reminder that prices do increase from the “kick-off discount rate” in less than 3 weeks, so please reserve your spot now (click here to check it out and start).
And now, the news…
Overruling The Rule of Capture: What Can Texas Learn From 10 Other States’ Groundwater Law Updates?
Texas groundwater common law is fundamentally based on principles developed in ancient Rome more than a millennium ago. It has also been nearly 120 years since the state adopted the “rule of capture,” which, as described by the Texas Supreme Court “essentially allows, with some limited exceptions, a landowner to pump as much groundwater as the landowner chooses, without liability to neighbors who claim that the pumping has depleted their wells.” More great analysis for the water midstream industry from Gabe Collins
The CLEAN Future Act and Oilfield-Produced Water Regulation: Potential Consequences for the U.S. and Global Energy Transition
Gabe Collins writes: "While substantial, the testimonial record for the CLEAN Future Act still has not addressed the systemic domestic and global energy security and economic impacts of its proposed provisions concerning oilfield-produced water."
Interesting Thread On Oilfield Water Legal Spat
A lawyer writes on Linkedin: "Last Wednesday evening I received a call from the new operator that there was actively flowing water from a well Chevron plugged and abandoned in 1995. Chevron declined to send a representative into the field to meet with the Railroad Commission last Friday..." check out the comments...
Treating the US oil industry’s dark water: As earthquakes increase, billions needed to switch course...
A worrying Rystad Energy analysis of seismic activity in the US’ key oil producing regions reveals that the number of noticeable earthquakes has been increasing year after year since 2017.
...Which some water midstreamers see as a signal to invest in more recycling
"Water recycling is our best weapon to combat the earthquake epidemic which we are observing in the Permian Basin...."
Encore Buys XRI Water Desalination Technology
Encore Green Environmental Technologies & Licensing (EGETL) purchased water treatment technology equipment formerly known as NOMAD from XRI/Fountain Quail.
Oil prices climb back to more than 2-year highs on demand optimism, as traders watch Iran talks
Oil futures rose Tuesday, with prices settling at more than two-year highs, on continued optimism about recovering demand and doubts that the U.S. would rejoin the Iran nuclear deal ahead of that country’s presidential election at the end of the week.
Bullish Trends for Oil Should Continue
Crude oil prices are expected to increase this week on the back of continued economic recovery and the accompanying surge in demand, analysts said.
Biggest Foreign Buyers of U.S. Fuel about to Step on the Pedal
Brazil and Mexico are beginning to emerge from the pandemic and that’s boosting demand for road fuel in economies that buy more U.S. gasoline and diesel than any other foreign nation.
Majors Under Big Pressure To Get Out Of Oil: Shell Mulling Permian Sale
Royal Dutch Shell is reviewing its Permian holdings for a sale worth as much as $10 billion, sources said...
Occidental Announces Continued Progress on Divestment Program with the Sale of Non-Strategic Permian Basin Acreage for $508 Million and Reaffirms 2021 Capital and Production Guidance
Occidental announced it has entered into a definitive agreement to sell non-strategic acreage in the Permian Basin to an affiliate of Colgate Energy Partners III, LLC, for $508 million, subject to closing adjustments to reflect an April 1, 2021 effective date....
We’ve Heard this Before: Study: World Set to Hit 'Peak Oil' by 2030 as Energy Majors Shift to Renewables
The world's largest oil and gas companies increased investment in clean energy by 34% in 2020, despite a 6% fall in global energy demand caused by the coronavirus pandemic, according to new research.
Cyber Risk: Southern California Water Supplier Among Those hit in Suspected Chinese Hack
The Metropolitan Water District of Southern California was one of two high-value targets hit by a suspected Chinese-backed hack that was first brought to the public's attention in April, the Associated Press reported....
OWL Social Media Hack?
Someone was posting jobs to LinkedIn using OWL's information...
TX Water Rights Advisory Work Group Meeting Material From June 3, 2021 Available
The meeting was held via Microsoft Teams and a recording of the meeting as well as the presentations given and a copy of the agenda are now available on the Water Rights Advisory Work Group webpage....
New infrastructure connects West Texas natural gas-producing areas to demand markets
Recently completed pipeline projects in Texas and Mexico have increased natural gas transportation capacity from the Waha Hub—located near Permian Basin production activities in West Texas—to the U.S. Gulf Coast and Mexico.
Our Mid-Year 2021 Outlook Survey Results Are In!
Nearly 100 Infill Thinking members weighed in on the US onshore oilfield market outlook....
Biden's Ban On New Oil And Gas Leases Is Blocked By A Federal Judge
The Biden administration's suspension of new oil and gas leases on federal land and water was blocked Tuesday by a federal judge in Louisiana, who ordered that plans be resumed for lease sales that were delayed for the Gulf of Mexico and Alaska.
Waste Connections Adds E&P Waste Disposal Facility in TX
Waste Connections Inc.’s exploration and production (E&P) waste unit has built a waste treatment and disposal facility near Stanton, Texas.
Company Opens First Radioactive Waste Repository in ND
North Dakota’s oil industry no longer has to ship all its radioactive waste out of state. A waste disposal facility in McKenzie County has started operating, and more sites could be on the way....
Oilfield disposal site in western Kern set to close
A large oilfield wastewater disposal pond near Buttonwillow will likely close this summer, and its operator and last remaining customer will together pay $645,000 in penalties and fees, under a recent court settlement that further restricts a decades-old practice that has become a focus of regional water quality regulators.
New Mexico commission weighs rule to prevent oil, gas drillers from making spills
A rule that forbids drillers from spilling oil or liquid waste would seem a given in New Mexico, which has one of the nation’s largest fossil fuel industries.
Raymond James Advises Basic Energy Services On SWD Deals
Raymond James has sold and advised on over 100 saltwater disposal facilities as of June 2021 across the Midland, Delaware, Bakken, Eagle Ford and Ark-La-Tex plays.
Labor's Tough To Find... Somebody Hire This Guy! (Cool Pictures From The Field Too...)
"I'm looking for work in the water industry 4+ years running frac tanks with produced,recycled and fresh water,pumps,pit 2 pits ,water management for single and simultaneous frac jobs rain or shine..."
6 Pain Points Dominate Shale Insider Mindshare Post-Pandemic [Exclusive Voice Of The Industry Update]
What has been the biggest upcycle challenge or friction point in the shale recovery coming out of the pandemic? - see what over 80 shale insiders said...
Pennsylvania's Gas-Well Revenue Down as Price, Drilling Drop
Pennsylvania's counties and municipal governments will see the lowest level of annual fee revenue they get from Marcellus Shale gas wells, as drilling slowed and prices sank during the pandemic, the Pennsylvania Public Utility Commission said Monday.
Schlumberger New Energy and Panasonic Energy of North America Announce Strategic Collaboration on New Battery-Grade Lithium Production Process
Schlumberger New Energy and Panasonic Energy of North America entered into a collaboration agreement for the validation and optimization of the innovative and sustainable lithium extraction and production process to be used by Schlumberger New Energy at its Neolith Energy pilot plant in Nevada.
Tracking Pioneer Natural Resources’ D&C Program In The Permian [Operator Spotlight]
This series is fueled by data that “scratches the surface” of Lium Research’s big data warehouse.
Produced water spill in McKenzie County
The gathering line is operated by Goodnight Midstream. Patrick Walker, CEO for the company, said the lines did have electronic monitoring for pressure and volume.