May 23, 2025 (MarketLine via COMTEX) --
The Texas authority acknowledges the scale of the problem and is setting new rules that may increase manufacturing expenses.
The Railroad Commission of Texas has raised alarms about increasing underground pressure in the Permian Basin, resulting from the disposal of wastewater from shale oil wells, reported Bloomberg.
This pressure build-up poses a threat to both the environment and crude oil production in the region.
Shale oil extraction in the Permian Basin, the largest US oil basin, produces millions of gallons of chemical-laced water.
Traditionally, this wastewater is pumped back underground. However, this practice has long been a concern for landowners and environmentalists, who argue it leads to toxic leaks.
The Texas regulator is now recognising the issue's magnitude and implementing new restrictions that could elevate production costs.
Notices regarding the pressure concerns have been issued to companies such as Chevron, bp and Coterra Energy, alongside water management operators like Waterbridge Operating and NGL Energy Partners.
These warnings were sent to entities applying for new wastewater disposal wells, as per a review of public records by Bloomberg News.
The shift to injecting water into shallower rock formations began around five years ago to mitigate the risk of earthquakes associated with deeper disposal.
However, the current volumes have become so substantial that they risk breaching wells, swelling and rupturing the ground, and potentially contaminating water sources for humans and livestock.
The impending restrictions on disposal in both deep and shallow zones mean that producers may need to transport wastewater further, increase recycling or invest in purification, all of which would add to costs in the Permian Basin.
This region is responsible for roughly half of the US' crude production.
These challenges add to the existing pressures faced by US producers, including low oil prices and a diminishing supply of prime drilling locations, despite former President Donald Trump's support for fossil fuels.
In acknowledgment of the issue's severity, the RRC has revised the standard language in its communications with producers.
The wastewater disposal into the Delaware Mountain Group formation has caused "widespread increases in reservoir pressure" that could be against public interest and harmful to Texas' mineral and freshwater resources.
Starting from next month, the RRC will enforce limits on water-pressure levels due to the "physical limitations of the disposal reservoirs".
Additionally, operators will be required to assess old or unplugged oil wells within a half-mile radius of disposal sites, doubling the previous mandated distance.
BP and Coterra have declined to comment, while representatives for bp, Waterbridge and NGL have not yet responded to comment requests.
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