Twenty-first century innovations in drilling and oil production have transformed formerly declining Texas oil fields into major oil producing areas. These innovations not only demand water, but also generate vast quantities of produced water. Once perceived as waste, produced water is now seen as a possible asset that could help address water scarcity in parts of Texas.

Key points:

  • For every barrel of oil produced, anywhere from three to twelve barrels water is also produced. In fact, the Permian Basin oilfields alone generate more produced water than all other U.S. oilfields combined.
  • The Texas oil industry faces two challenges: increasingly strained water supplies and determining how to handle excess produced water. Produced water is both an asset and a waste, requiring a combination of strategies and innovations to ensure continuing success of the Texas oil industry.
  • As the demand for new water supply intensifies, the Texas oil industry has an opportunity to not only benefit from previously unusable water, but to create a new source for the state.