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(Oil Price) – As if WTI oil prices in the low $60s per barrel aren’t enough to slow production growth at America’s top producing shale basin, the Permian, new guidelines for permitting saltwater disposalwells could raise the costs for operators, especially smaller producers with limited resources.
(World Oil) – Utilizing scientific and engineering analysis, the Railroad Commission of Texas has issued new guidelines that further strengthen permitting of disposalwells in the Permian basin. Produced water is a byproduct of oil and gasproduction and is injected into SWDs.
While the industry continues to explore recycling technologies and beneficial reuse applications, economic and technical barriers have limited widespread adoption. Consequently, over 80% of Texas produced water still finds its way into saltwater disposalwells—a critical infrastructure network that enables continued production.
This leads to a bifurcated situation: what is the sustainability of current methodologies for disposal, and what are the infrastructures and processes in place to take a product once regarded as waste and turn it into an asset? Through normal drilling, completions, and production, the numbers are staggering. Not even on eBay.
Saltwater disposalwells rarely fail, but when they do, a complex web of legal issues can arise, such as potential regulatory matters, and potential claims for surface or subsurface damages, among other related operational concerns. Operating LLC , No. 03-22-00063-CV, 2024 WL 847222 (Tex.App—Austin Feb. 29, 2024, no pet.),
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