Oslo-based energy research company Rystad Energy said Dec. 11 water disposal in Permian Basin is likely to hit an all-time high in 2020Q4 by exceeding 1.3 billion barrels. Rystad said, “Behind the expected expansion is a combination of factors, including a rapid recovery in activity, a steady clip of enhanced oil recovery projects, and base production structurally shifting to become more mature, which increases the water-to-oil ratio.” Artem Abramov of Rystad added, “The rapid recovery in the disposal market will position the region’s dedicated midstream operators for better financial performance heading in to 2021.”
Rystad said before production curtailments started in March, Texas’ underground injection possibly surpassed 30 million b/d. Then it declined about 18 percent in March-May following the collapse of oil prices. Rystad estimates the state’s underground injection returned to about 29.5 million b/d in September.