CLASS II SALTWATER DISPOSAL (SWD) FACILITY BUSINESS OPPORTUNITIES
A Leader In Salt Water Disposal Systems
Hew-Tex Oil & Gas’s Managing Member, Peter Hewett, has been in the upstream side of the energy industry for more than four decades of crude oil producing operations involving the generating of oil and gas drilling prospects (exploration and production of hundreds of oil and gas wells) both domestic onshore and offshore USA. Thus, Hew-Tex Oil & Gas (“HTOG”) has extensive knowledge and experience in producing crude oil and dealing with the associated formation saltwater produced by nearly every crude oil well.
It was a natural shift into the saltwater disposal business by Mr. Hewett and the Hew-Tex Oil & Gas management team early in 2017 after the discovery (late 2016) in the Permian Basin of more than 20 billion barrels of proven oil reserves and 16 trillion cubic feet of natural gas reserves that were found through the use of new horizontal drilling extraction techniques and 3-D seismic technology. The niche that Mr. Hewett decided to specialize in was the result of a hands-on awareness that the operators and producers drilling the hundreds of oil wells, needed to find a way to dispose of the significant volume of saltwater that is produced along with the crude oil in the Permian Basin. The Permian Basin is comprised of the Delaware Basin on the west, the Central Basin Platform in the middle, and the Midland Basin to the east. Today, there are currently as many active drilling rigs in the Permian Basin as there are combined throughout the balance of the entire USA, both onshore and offshore. Several thousand wells are planned to be drilled by companies like ExxonMobil, Occidental Petroleum, Chevron, Apache Corp., Shell Oil Western, Anadarko E&P, EOG Resources, Cimarex Energy, Energen Resources, Endeavor Energy, Matador Production and many other independents.
Today, the average Permian Basin oil well initially produces 650 barrels of oil per day will also produce and estimated 2,000 barrels of formation saltwater per day. This ratio of 3 barrels of saltwater per 1 barrel of crude oil creates a huge problem for operators and producers. There is a substantial need for approved saltwater disposal well facilities to inject this saltwater as well as to clean and wash the tanker and vacuum trucks and frac tanks that is required under the EPA (Environmental Protection Agency) by statutory law of the Texas Water Code and enforced by the Texas Railroad Commission. If an operator has no place to dispose of the saltwater, it has no choice but to shut-in the well.
Hew-Tex Oil & Gas, believes the commercial saltwater disposal business in the West Texas Permian Basin area will continue to be a very lucrative business opportunity for years to come. The economics are simple…spend the least amount of capital to build a state-of-the-art disposal facility that has the potential to generate significant cash flow 24/7. This website will discuss in subsequent sections all of the relevant areas pertaining to saltwater disposal business opportunities.
New laws could pump billions of dollars into Permian Basin’s rapidly growing water recycling industry
Houston Chronicle - Business / Energy
Whether by pipeline tanker, truck or hose, more water is moving around the arid Permian Basin than crude oil at any given moment.
Water has become the lifeblood of the modern energy industry with hydraulic fracturing using high-pressured slurry of water, sand and chemicals to unlock oil and gas from shale formations in Texas and across the country. In the arid Permian Basin, the nation’s most productive oil field, drilling and fracking operations consume more than 195 million gallons of water per day in West Texas and southeastern New Mexico — enough water to fill nearly 300 Olympic-sized swimming pools.
All this has made water and water management in the Permian a big business that’s only expected to get bigger, following the recent enactment of three laws in Texas and New Mexico, the two states encompassing the sprawling oil basin. The laws, which essentially clarify water rights issues and encourage the reuse of water, could pump billions more dollars of investment into the region’s rapidly growing water recycling industry. Read more…
As much as $9 billion will be needed over the next decade just to throw away dirty water in the world’s busiest shale field, according to Raymond James & Associates Inc.
The scale of the challenge is mind-boggling: drillers typically pump 30 Olympic-sized swimming pools of water into an oil well to fracture the surrounding rocks. In return, as much as 10 barrels come rushing back out for every one barrel of crude, Raymond James analyst Marshall Adkins said in a note to clients on Monday.
Given that recycling efforts aren’t robust enough to handle the 17.5 million barrels of dirty water produced DAILY in the Permian Basin of West Texas and New Mexico, oil companies have to do something else with all that salty slurry, Adkins said. After all, so-called produced water is 10 times saltier than seawater and can be tainted with heavy metals and radioactivity.
“Most investors are simply unaware of the fact that as crude production grows, produced ‘dirty’ water grows even faster,” he wrote. “As the Permian Basin shifts further into manufacturing mode, the water growth we project will create the need for nearly 1,000 additional salt water disposal wells by 2030.” Read more…
WorldOil.com - By David Wethe on 6/24/2019
HOUSTON (Bloomberg) — For companies that haul oil and natural gas, the next big thing may be dirty water, according to Jefferies Group LLC.
As booming U.S. oil production unleashes a torrent of contaminated water that rises to the surface with crude, pipeline operators may be in the best position to harness those flows and expand into the water-handling business, said Peter Bowden, Jefferies’ global head of energy investment banking.
In the Permian basin alone, the combination of saltwater from wells and water used in the fracing process is expected to be three times larger than crude output by 2023, according to Jefferies. Pipeline owners already are adept at transporting oil and gas, so adding water to their portfolios may be a logical next step, Bowden said Friday at an Oilfield Water Connection conference in Houston.
“Water is going to offer them more growth than their core business,” he said. “There’s a case that the public midstream companies should be doing all three streams everywhere they can.”
There have been more than $2.5 billion of Permian-focused water deals so far this year, according to Gabe Collins, a fellow at Rice University’s Baker Institute. Many of the transactions have involved private-equity firms, he said during the same conference.
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