In short: will water crises lead to policies which further inflate the costs of, and limit the suitable locations for oil production?

My understanding is that increasing amounts of produced water with limited ability to recycle must be disposed of and Texas gets to deal with it.

Between decreasing water availability, an oil industry in deep debt while forcing taxpayers to clean after itself, while water shortages in Texas are expected in 5 years, this seems to me like an economical and ecological PR nightmare waiting to happen.

www.texastribune.org

The state’s water supply faces numerous threats. And by one estimate, the state’s municipal supply will not meet demand by 2030 if there’s a severe drought and no water solutions are implemented.

https://www.houstonchronicle.com/business/energy/article/zombie-wells-toxic-waste-taxpayer-cost-18001336.php

Given this, do we have precedent for the restriction of industrial water use impacting oil production, and their economic implications?

I've seen water-management enter political discourse more frequently. The water-use of data centers is often cited.

Globally, the UN declared the world to enter an era of Water Bankruptcy last week:

unu.edu

Flagship report calls for fundamental reset of global water agenda as irreversible damage pushes many basins beyond recovery

This concerns me from a conservation angle. I imagine it concerns others in their countries. What I don't know is what, if any, policies will result from it, nor their economic consequences.