This presentation from Christine Guerrero is worth watching. It's a deep dive into the current mess we're in with water disposal from both New Mexico and Texas production operations. As you've said more than once, Mike, New Mexico is sending their water to Texas, which transfers the seismic risk to us. I'm still stunned that the TDEQ is actually accepting applications for CO2 "sequestration" wells when we can't even keep the water in the ground.
There was another 5.5 earthquake near Odessa this week. What happens when pipelines start breaking?
Here's a good slide from Ms. Guerrero's good presentation above. It shows pretty clearly the current percentage of produced water being recycled in the Permian is no more than 25% The 60% stuff you hear from the sector is a lie. It also shows, clearly, where associated produced water volumes are going, up, and that there is no place to put the stuff anymore. This is Enverus data, partially, by the way.
So 75-80% of frac water sources in West Texas are still used from groundwater. It may be high TDS groundwater not fit for human consumption without osmosis treatments, but a lot of high TDS water is still good for livestock. When water becomes scarce enough it is way more cost effective to reduce TDS from home, than for desalination 1000 miles away.
So for all the constant, never ending dung heap about Permian tight oil growth over the next 10 years, about 15,000 wells here, 40,000 wells there left to be drilled at $40 breakeven prices, in itself a lie, where is all the water going to come from to frac them, and where is all the water going to go when it comes out of the ground during the production cycle?
The tight oil phenomena in the Permian is THE place to make money if you are in the oilbiz. So most people don't give a rat's ass about the environment, depleting their water resources, earthquakes and/or long term national security in America (80% of Permian tight oil is exported)...its just about them. The make up shit about taxes (for $70MM H.S. football stadiums, high paying jobs (down 28% the past 2 years) and energy secturity for...Singapore. The Permian exports about a half million barrels of Wolfcamp oil to...China for God's sake.
And don't forget, every additional barrel of oil produced in the Permian tight oil play during the upcoming drill baby, drill party...will also be exported to foreign countries.
That's quite the musing Rob. Lots of thought put in that.
What came to mind for me, was how could anyone understand what's going on if they aren't in the industry? Everyone is specialized in what they do, and the knowledge they command. It's just not on the radar. It should be on our governments radar, as they are supposed to give a fuck about the citizens, however all over the world, no one seems to want to tackle energy head on. Just dress the stuff in green clothes, and hope we all go along with the reduced standard of living that comes with it all. They are cowards not wanting to risk upsetting the Almighty vote. Fuckers, the lot of them
Unravelling the BS '' Drill , baby drill '' .
https://blog.gorozen.com/blog/trumps-three-arrows?utm_campaign=Weekly%20Blog%20Notification&utm_medium=email&_hsenc=p2ANqtz-8q3D1IFrUdG0SutA8gM3XULaR_gn4sKDJzdYDpEiQoPL_Rb9x7NH_WS4oYST0qB0gM0u3VFscJJ3hKmC5k6CoyGDo9xQ&_hsmi=326608808&utm_content=326608808&utm_source=hs_email
I do not wish to take away from the importance of Anne's post, nor Ms. Guerrro's work regarding water. Water going in, and coming out, of the Permian Basin will be the end of it someday much sooner that people think.
The Permian Basin is the Sacrifice Zone. Valuable oil and natural gas are being produced from the Permin at rates higher than it can be used in America, for American's. Everybody is in a fucking hurry to make as much money as possible before it all craters. For crude oil exports to foreign countries.
The lies about protecting valuable allies (Singapore?!!) with U.S. crude oil exports are abundant. American oil and gas exports did nothing to curtail Russian agression against Ukraine, Iranian agression against Israel and China, who actually imports Permian Basin HZ tight oil, is set to take over the world, starting with a war over Taiwan. Those were all lies.
In the Sacrifice Zone of West Texas crime is very, very high. There are earthquakes that rattle people's windows, the air stinks from flaring, the water that people drink and use to bathe is awful and becoming scarce. The cost of living in Midland/Odessa is as high or higher than any othe region of Texas. There is trash everywhere and even the oilfield can no longer control the theft of equipment and oil from its own backyard. It is all out of control...all for exports to foreign countries.
https://www.msn.com/en-us/money/markets/texas-approves-plan-to-expand-permian-basin-drillers-power-grid-access/ar-AA1rh3Bo?ocid=entnewsntp&pc=U531&cvid=4ccdd29aadbb4f3f842cba682e106b23&ei=27
Now West Texas needs to prepare for electricty shortages if immense magnitude. Why? Because the Permian Basin needs more electricty to drill more HZ wells, produce more oil, deal and deal with more produced water. This electricity allocation to the Permian HZ play will actually take away from the rest of the State and people relying on electricty to keep the lights on.
All so we can export more crude oil to foreign countries.
This presentation won’t get the attention it deserves until it’s too late.
An apposite quote from Kurt Vonnegut Jr:
“Dear future generations: Please accept our apologies. We were rolling drunk on petroleum.”😢
Pipelines have already broken (Pyote; 8.23 after a 4.1 near Monahans); what happens when well casing parts and underground blowouts contaminate what little unsable groundwater is left in West Texas?
All of Texas is running out of water, particularly West Texas, even Central and South Texas along the river. The volume of usable groundwater pumped into HZ tight oil wells in the Eagle Ford and particularly in the Permian Basin is astounding, enough every day to satisify the needs of millions of Texans that same day. And seldom talked about. The percentage of produced water actually treated and re-used for frac'ing is one the biggest lies in the Permian shale oil sector. It is no where near what the industry says it is.
Uusable groundwater going into the Permian, and produced water coming out, can all be controlled with an intentional slow down in permitting new wells, or limiting the number of new wells drilled by increasing spacing between wells and well density per acre. The TRRC has the statutory power to do that immediately. It would help solve both water problems, going in and coming out, preserve bottom pressure for increased oil recovery rates, prevent waste of associated gas up flare stacks, increase both oil and natural gas prices for a more sustainable shale sector and help conserve American hydrocarbon resources for America's future. That is the quickest fix, a good start, and optimal for our entire nation. Exporting 4.2 MM BOPD of valuable oil, most of it from the Permian, is short sighted and problematic, in many ways, particularly water. Oil exports as a foreign policy tool has failed miserably anyway.
Thank you, Anne. Ms. Guerro has done a good job with this.
Mike Shellman