The Permian basin (Permian) of Texas (TX) and New Mexico (NM) is the most prolific oil and gas region in the U.S. According to the Energy Information Administration (EIA), Permian oil and gas production has officially grown past pre-pandemic levels, growing from approximately 4.8 MM bopd to over 5.1 MM bopd. Permian producers are responding to the high commodity price environment and looming supply shortages by promising significant production increases from their core acreage. While growth in Permian production is already underway, the industry faces challenges to unleashing the basin’s full potential. One of the greatest obstacles facing Permian production growth is the dynamic logistical challenge associated with produced water management.
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Water in the Permian basin. Most Permian oil and gas production comes from the Delaware basin (Delaware) and Midland basin (Midland). However, each sub-basin has unique characteristics that impact production: notably differing geology, location and water volume. The Delaware is divided into the Northern Delaware and Southern Delaware basins, split by the state boundary between Texas and New Mexico. These states have different regulatory policies for oil and gas production and water management, which impacts producer economics, and drilling and production strategies. (By Kylie Wright, Patrick Patton, Kelly Bennett – World Oil)
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