Dear Friends and Colleagues,
We’re all shocked at the crash in energy markets over the past week.
Producers are rushing to slash operating expenses to weather this storm, while hoping not to cripple future prospects.
For many onshore oil wells, produced water management — water hauling, transfer and disposal — is the single largest lease operating expense. Often it is a majority of LOE, especially in the Permian, where average water-to-oil ratios range from 4:1 in the Midland Basin to 8:1 in the Delaware. IHS estimated that Permian operators spent about $6.34 billion on transporting and disposing of produced water in 2018, over $5 for every barrel of Permian crude.
Water is also one of the most controllable operating costs. Compared to staff reductions and maintenance deferral, it is one of the few costs where smart cuts now can improve rather than harm your future performance when the market recovers.
Sourcewater helps operators find immediate, substantial cost savings in produced water management.
We do that by analyzing even the largest, most complex portfolios to show you for each and every lease:
- Where you could send produced water shorter distances for disposal or recycling, saving on transfer costs
- Where you could take advantage of low utilization disposal capacity to reduce disposal fees
- Where you are losing too much skim oil and could keep and sell more of what you produce with targeted maintenance
Even the best-managed operators have many hidden, high-cost inefficiencies in their produced water supply chain that are difficult and expensive to visualize without our tools. That is because the water management decisions that were made when a lease was first developed are often not the optimal decisions anymore, given the massive regional water infrastructure development and new water production of the last few years.
Sourcewater helped our industry through the last crash, and we are here to do it again.
Please contact us for a no-cost preliminary analysis of your potential produced water management savings.
Founder & CEO