A new area under watch by the Texas oil regulator could impact wells responsible for disposing about 270,000 bbl/d of saltwater from oil and gas operations, according to data and analytics firm B3 Insight.
Regulators this month classified a swath of the Permian basin as a so-called “Seismic Response Area” (SRA) after a magnitude 4.2 earthquake hit 11 miles north of Stanton, Texas. Regulators previously identified two other SRAs following an uptick in tremors in the largest U.S. oil-producing region.
In December, regulators suspending permits for 33 disposal wells across four oil-producing counties around Midland, Texas.
RELATED:
Column: Industry’s Response to Earthquake Concerns in the Permian Basin
The ban has West Texas oil producers looking for ways to reduce wastewater injections that could raise costs. Solutions include recycling the wastewater or piping and trucking it elsewhere.
The newly designated area, dubbed the Stanton SRA, affects 72 disposal wells, of which 35 are active and handle roughly 273,000 bbl/d of water, according to analysis from B3. Some 74% of those wells are used for deep disposal, accounting for roughly 197,000 bbl/d of saltwater disposal.
The Texas Railroad Commission (RRC), which regulates the state's oil and gas industry, said it will work with operators to develop a plan to reduce the risk of earthquakes in that region, with the goal of eliminating magnitude 3.5 or higher quakes 18 months after initiation.
That approach mimics one taken in the North Culberson-Reeves SRA, near New Mexico. Operators there have until Feb. 22 to develop a plan for curtailing quakes or the RRC will implement its own action.
Recommended Reading
Texas LNG Export Plant Signs Additional Offtake Deal With EQT
2024-04-23 - Glenfarne Group LLC's proposed Texas LNG export plant in Brownsville has signed an additional tolling agreement with EQT Corp. to provide natural gas liquefaction services of an additional 1.5 mtpa over 20 years.
US Refiners to Face Tighter Heavy Spreads this Summer TPH
2024-04-22 - Tudor, Pickering, Holt and Co. (TPH) expects fairly tight heavy crude discounts in the U.S. this summer and beyond owing to lower imports of Canadian, Mexican and Venezuelan crudes.
What's Affecting Oil Prices This Week? (April 22, 2024)
2024-04-22 - Stratas Advisors predict that despite geopolitical tensions, the oil supply will not be disrupted, even with the U.S. House of Representatives inserting sanctions on Iran’s oil exports.
Association: Monthly Texas Upstream Jobs Show Most Growth in Decade
2024-04-22 - Since the COVID-19 pandemic, the oil and gas industry has added 39,500 upstream jobs in Texas, with take home pay averaging $124,000 in 2023.
Shipping Industry Urges UN to Protect Vessels After Iran Seizure
2024-04-19 - Merchant ships and seafarers are increasingly in peril at sea as attacks escalate in the Middle East.