OI LFI E LD WATE R MANAG E M E NT
Industry builds circular
water economy as it leans
into recycling and reuse
Water management companies investing heavily in treatment
technologies and transport infrastructure as E&Ps continue to shift
away from disposal wells, reduce reliance on freshwater
BY STEPHEN FORRESTER, CONTRIBUTOR
T he use of water in oil and gas operations has long
been necessary, but water scarcity in many parts of the
world — and growing scrutiny on environmental and
social considerations for energy companies — has led the indus-
try to refocus its attention on minimizing freshwater use and
finding better ways to work with produced water sourcing and
delivery. Fortunately, the industry is well-positioned to take
advantage of advanced technology and engineering solutions,
which are already a critical piece of their operational success, to
Highlights
Establishing extensive pipeline network and
treatment facilities is a key step to creating
a circular economy of water management,
where water disposal is only a last resort.

While still in early stages, beneficial reuse
for produced water in applications such
as farming has potential to mitigate the
impact of droughts in places like West Texas.

Automated solutions are helping
companies to optimize monitoring and
management of water treatment and
transport while reducing HSE exposure.

30 improve water sustainability and optimize water efficiency. In
doing so, there is outsized potential to strengthen the industry’s
public perception and relationship with stakeholders.

Eliminating freshwater use by expanding
water recycling
XRI, a full-cycle water management and produced water
midstream company founded in 2013, began installing its first
long-distance buried pipeline infrastructure in 2014. In the years
since, the company has seen broad growth within the water
management sector, said Vice Chairman and Chief Sustainability
Officer John Durand. “We’ve been watching as the market has
transitioned away from water management as a function largely
handled internally by E&P operating companies,” he remarked.

For the industry to continue to advance, Mr Durand said it must
wean itself off freshwater. “After the difficult drought situation
in West Texas from 2010 to 2015, there surprisingly were not a
lot of people dedicated to using non-potable water to serve drill-
ing and completions,” he explained. XRI, however, maintains its
philosophy that the E&P sector must transition away from using
freshwater for completion activities.

“We believe that the future of produced water and the handling
of produced water, in the Permian Basin and elsewhere, must lie
in recycling and reuse,” he explained. “There is simply too much
water resource being produced, between produced water and
flowback, to not lean into efficient and cost-effective water recy-
cling and reuse at scale.” This means a step-change was needed
to build a circular water economy based on recycling and reuse,
where an injection well would only be the last resort.

J U LY/AU G U ST 2023 • D R I L L I N G C O N T R AC T O R