Analyst: Water issues could extinguish Permian's surging output


#1

#2

The volume of produced brine to oil and gas production is significantly higher in the Delaware Basin
than in the Permian Basin…as high as 10 barrels of brine to every barrel of oil.

All that produced water has to be reinjected or cleaned and used for more drilling…or cleaned and made into fresh water. All options are expensive and storing the volumes of water for whatever
path of water management a company takes translates into ever larger tracts of land with man made
reservoirs. Basically, we are transferring an Ocean long trapped underground to the surface where we have to deal with it in an environmentally beneficial manner. Whatever we do, it’s expensive unless a way could be found to produce energy from the produced brine that makes if economically
attractive.

ol’ Lawrence in Verhalen


#3

Hey Lawrence, Mary here.

Are the water management companies looking for leases to erect the salt water drills? As previously stated, my property is located next to the new cryo factory in Pecos. What is the going rate for a lease for a swd? Can I solicit for the swd’s for my property? I have heard they pay a percentage? What is the average payout for the percentage? Mary