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Now here is this week’s industry news & analysis…
News Digest
U.S. crude oil dips below $70 as tankers transit Strait of Hormuz
Oil prices are plummeting as concerns over disruptions to shipping through the Strait of Hormuz eased.
Peace With Iran? Bigger Story May Be The Permian Basin
Kirk Edwards writes: "Regardless of how those negotiations unfold, the Permian Basin finds itself in a much stronger position today than it was just a few months ago."
The Disposal Illusion: Why Moving Water Is Not the Same as Managing It
The Permian’s growing produced water volumes are pushing the limits of subsurface injection.
Microsoft Enters The Permian With Massive 2.7GW Data Center
Microsoft is announcing one of the largest single capacity additions in their history. In Pecos, Texas of all places! In this announcement they make a strong commitment to the Permian Basin.
Chevron Signs 20-year Power Agreement With Microsoft For Pecos Data Center
Chevron will develop a co-located power facility in West Texas that will provide dedicated electricity to a Microsoft-operated data center under a 20-year power purchase agreement.
Chevron & Microsoft Eye Produced Water Reuse Opportunities At Project Kilby Data Center / Power Plant In Pecos
In lieu of freshwater, Kilby plans to use non-potable, brackish groundwater sources for power plant operations. Chevron is also working to advance solutions for reuse of produced water from oil and gas operations.
Texas Pacific Land Corporation Announces Agreement to Provide Land and Water Solutions to Chevron for a Large-Scale Power Project
Texas Pacific Land Corporation announced an agreement with Chevron to provide land and brackish water resources for Chevron’s recently announced development known as Project Kilby, involving a large-scale power generation facility Chevron is developing to support a Microsoft data center in Reeves County, Texas.
Microsoft is building an AI datacenter that "uses less water than a fast food restaurant"
Microsoft has committed to implementing a closed-loop cooling system that will only require an initial water charge to operate. The company said that “the total lifecycle water use of this datacenter is only a fraction of that consumed annually by a typical fast-food restaurant.”
Produced Water Is A Critical Frontier In Permian Basin
Produced water treatment is becoming a critical frontier in the Permian Basin’s midstream strategy, with Western Midstream Partners advancing a new pilot plant to address the growing demand. Initial results from this initiative could signal a pivotal shift in how operators manage water resources, enhancing sustainability and operational efficiency in one of the most prolific basins globally.
U.S. Midstream Water Treatment Technologies: Market Trends and Competitive Landscape, 2026–2036
Bluefield says the U.S. produced water treatment market is approaching a pivotal moment that increasingly favors technology and solutions providers. Valued at US$102.7 billion, it is projected to grow nearly 7% annually through 2036 per their estimates, driven by the declining viability of disposal as the primary management strategy.
The Future Of Texas Water
Hear Texas Senator Perry discusses the future of Texas water policy, the role of produced water as a new water supply, desalination, aquifer storage, infrastructure funding, and the planning required to meet the state's growing demand.
Western Pa. developed practices that revolutionized US energy extraction
"So vast is the wealth of natural gas locked into dense rock deep beneath Pennsylvania, New York, West Virginia and Ohio that some geologists estimate it’s enough to supply the entire East Coast for 50 years. But freeing it requires a powerful drilling process called hydraulic fracturing or “fracking,” using millions of gallons of water brewed with toxic chemicals that some fear threaten to pollute water above and below ground, deplete aquifers and perhaps endanger human health and the environment."
Should Ohio take a closer look at what frac'ing does to drinking water?
Earlier this month, Northeast Ohio state Reps. Derrick Hall and Sean Brennan introduced legislation to beef up oversight of the chemicals used in oil and gas wells.
Booked Debt, Guessed Reserve
Water has a balance sheet now. The asset side is still mostly an estimate.
Iodine from Oilfield Brine: Evaluating Processes and Innovations for New Facilities
Three recently published papers purport to offer solutions for iodine extraction or iodine recovery from brines, saline wastewaters, or iodine-lean sources, and together they deserve explicit consideration in evaluating a potential new iodine extraction facility (Liu et al., 2022; Wang et al., 2025; Yu et al., 2025).
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