Operators

Produced Water Management

byEnverus
October 9, 2025

Produced Water Management

Produced water management or handling refers to the processes and technologies used to manage, treat and dispose of water that is co-extracted with oil and gas during production. This water, which is often saline and contaminated with hydrocarbons, solids and chemicals must be treated to meet environmental and operational standards. Produced water is the largest byproduct of oil and gas production and its management is critical for sustainability, regulatory compliance and cost control.
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Frequently Asked Questions

What are the common methods of treatment?

Treatment methods include gravity separation, hydrocyclones, coalescers, chemical precipitation, reverse osmosis and biological treatment. The choice depends on water composition and reuse or disposal goals. Advanced treatment solutions are emerging, such as one company's 92% recovery rate of desalinated water with total dissolved solids levels of 40-200 ppm in pilot programs, where the treated water meets Texas Railroad Commission standards for beneficial reuse. E&Ps are increasingly utilizing recycled water in fracs, with companies like Permian Resources reaching 50% recycled water use and targeting ~70% in coming years.

How much water is produced in the Permian Basin?

The Permian Basin produces massive volumes of produced water, with approximately 13 MMbbl/d from the Delaware Basin and ~7 MMbbl/d from the Midland Basin. In some Delaware regions, operators see water-to-oil ratios (WORs) exceeding eight barrels of water per barrel of oil.

What are the environmental risks of improper produced water disposal?

Improper disposal can contaminate groundwater, harm ecosystems, and even induce seismic activity if injected into unsuitable formations. A significant Texas Supreme Court ruling in July 2025 established that produced water belongs to the mineral estate holder rather than surface property owners, reinforcing that produced water is classified as waste under pollution control laws. This gives upstream companies the opportunity to profit from reusing produced water and strengthens the foundation of water midstream companies.

 

Are there economic benefits to reusing produced water?

Yes, there are significant economic benefits to reusing produced water in the energy industry, as demonstrated by multiple companies and technologies across different basins. Companies are achieving substantial savings by reducing freshwater purchases. While water consumed for completions has been flat since 2022 as E&Ps become more adept at utilizing recycled water in fracs. Additionally, the potential for mineral extraction from produced water, including lithium recovery opportunities, and agricultural reuse applications after proper treatment, creating multiple revenue streams beyond traditional disposal methods, driving increased investment in water recycling infrastructure and advanced treatment technologies across major producing basins.

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