Energy research and consultancy company, Wood Mackenzie (WoodMac) announced on its recent website post the grave challenge faced by the large sedimentary basin in the southwestern part of the United States. The failure to acknowledge and tackle the problem will lead to rise in costs and also to more serious consequences like well shut-ins.
Availability of water is the biggest challenge face by the field development of the basin. As the number of completed Permian wells continue to soar, water disposal volumes will double by 2022. Reports suggest, although 100% of water will be reused for completion, the current salt water disposal infrastructure will hit capacity in the near future. Moreover, the activity of water trucking has resulted into road damage and traffic jams. As a consequence, the water midstream space is desperate for capital and the infrastructure will most likely pick up in 2019, suggests the WoodMac post.
A report by the U.S. Energy Information Administration predicted earlier this week, that oil and gas production in the Permian would hit 4.13 million barrels and 14.11 billion cubic feet per day in May.