The Permian Basin is becoming a victim of its own oil and gas success as rising unintended environmental consequences mount:
1 Water Handling Bottleneck: The Permian Basin faces a critical issue with water handling, they produce nearly 19 million barrels of water per day, which could double by 2030. The water disposal methods are causing increased seismic activity, indicating that disposal zones are filling up.
2 Seismic Activity and Regulation: The rise in oil production and water reinjection has led to a significant increase in earthquakes, with a potential for a Magnitude 6+ earthquake within two years. Current regulatory actions are insufficient, risking Texas groundwater and infrastructure.
3 Environmental Risks: Overpressurized shallow formations have caused orphan wells to leak toxic water, highlighting the environmental risks and questioning the hidden costs of cheap oil. The solution proposed is to produce less oil or restrict water disposal via injection which would lead to higher prices.