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Permian oil producers face higher costs with new saltwater rules

Oil & Gas 360º

(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 disposal wells could raise the costs for operators, especially smaller producers with limited resources.

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Drowning in Liability: Court Extends "Waste" Liability to SWD Operator; but preserves the RPO defense

Producer's Edge

In the vast expanse of Texas oil fields, a critical but often overlooked challenge lies beneath the surface: produced water management. Consequently, over 80% of Texas produced water still finds its way into saltwater disposal wells—a critical infrastructure network that enables continued production. —El Paso Dec.

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Reusing produced water

Oilfield Technology

Most of this water goes back into the producing formations via injection wells as part of IOR and EOR programs to get more production from ageing fields. Historically, excess PW not needed for sweeping producing formations has been disposed of in Class II Saltwater Disposal wells (SWD). Venture capital money flowed in.

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The Produced Water Challenge

Permian Basin Oil and Gas Magazine

If that water cannot be injected back into the disposal wells, where is it all going to go? Well, hold your literal and metaphorical horses. Ira Yates, president and Founder of Friends of the Pecos River (more at: friendsofthepecosriver.org) recently said during an interview, Well, the water has to be clean.

Basin 96
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Welded Together

Permian Basin Oil and Gas Magazine

From there we started building SWDs [saltwater disposal well facilities] and buildings, along with awnings and all, he said. A Lot of Help from My Friends At this point the big question revolves around how a completely solo welder becomes a significant entrepreneur and manages a rapidly growing business.