Best NOT Underestimate What a Threat This Actually Is....

The Permian Basin in West Texas and New Mexico now produces a little south of 6.85 MM BPD of crude oil and condensate, fully 50% of ALL U.S. C+C production comes from this Basin. It has been the sole source of production growth in the United States, indeed the entire world, for the past five to six years.

Because of the Permian, America is the number one oil producing country on the planet and second largest oil exporter behind only Saudi Arabia. In fact, 75% of Permian Basin C+C production is exported to foreign countries including most of Europe, India, Canada, Great Britain, and most of Asia, including China (EIA).

Associated gas from tight oil and tight gas wells in the Permian is growing exponentially and set to be the number one feedstock for rising LNG exports from the U.S. and the No. 1 fuel source of powering the worldwide AI data race.

Associated gas and dry gas from Permian unconventional resources makes water too. Lots of it.

All told, the Permian now produces 24 MM BWPD. Texas does not measure produced water precisely; in reality it's more like 27 MM BPD, four times oil production.

Now, let me introduce you to the reason that growth will NOT continue, in spite of all the rhetoric about billions of linear feet of horizontal lateral potential left in the basin (data-well companies like Novi, Enverus, Rystad, WoodMac), in spite of government "investment" just announced today from Washington, reductions in environmental regulations, faster rigs, AI data, the Barnett, etc...it cannot go on much longer.

The reason?

There is no place to put anymore produced water.

Managing Produced Water in the Texas Permian Basin Will Remain a Long-Term Challenge | Water Resources Podcast

As legacy tight oil production continues its relentless decline, associated water production with it will increase.

New, HZ wells being drilled in pressure depleted cores throughout the Permian are producing more water.

There is simply no economically feasible means of injecting more produced water into the regions subsurface. The Basin is already splitting at its seams and plus 3.0 EQ's are a weekly occurrence, somewhere.

This water problem is a big problem. Drilling more SWD wells wherever pressure gradients will allow, or playing musical chairs with seismic response areas (TRRC-SRAs) is NOT going to fix the problem. That is big fat lie.