What Will Permian Operators Do With All That Produced Water? -- RBN Energy -- June 12, 2017
RBN Energy:
what are "we" going to do with all that produced water?
Today most produced water moves off the lease in trucks, although
producers are now increasing their investment in produced
water-gathering and transportation systems to move the barrels to
centralized facilities and disposal wells. But here’s the bottom line:
it costs just about as much to move a barrel of water as it costs to
move a barrel of oil.
And there is a lot more water than oil coming from
a given well. The implication is that the largest single cost of
operating a well — sometimes more than half of total operating
cost — is produced-water disposal. That is a number that can impact
producer economics and thus capex investment plans, drilling activity
and production growth.
Worse yet, there is concern in some quarters that
the sheer volume of produced water may eventually overwhelm the ability
of the network of facilities and disposal wells to keep up with crude
oil production, resulting in a constraint on growth in the Permian. In
the next blog in this series we will examine the costs of produced water
disposal and how those costs may affect Permian crude oil development
over the next few years.
Active rigs:
$46.05 | 6/12/2017 | 06/12/2016 | 06/12/2015 | 06/12/2014 | 06/12/2013 |
Active Rigs | 52 | 28 | 76 | 185 | 187 |
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