Investor Center
Saltwater disposal facilities are in demand in the Permian Basin
We offer saltwater disposal facility opportunities in Reeves County, Texas the #1 producing county in America! Oil and Gas Production Statistics – TRRC
Saltwater disposal is the best business in the energy space with big tax saving aspects. Saltwater disposal facilities are tangible investments generating revenue by charging oil companies for disposing waste water and collecting skim oil.
The Permian Basin is producing over 4.5 million barrels of oil per day and for every barrel of oil produced there are up to 10 barrels of wastewater that must be legally disposed.
The Rise Of Water In The Midstream – Greater water usage by oil and gas producers is necessitating new infrastructure projects from increasingly specialized operators. Read the article…
Permian needs $9-billion worth of new wells – but not for crude, says analyst.
HOUSTON – As much as $9-billion will be needed over the next decade to dispose of produced water in the world’s busiest shale field, according to Raymond James & Associates Inc.
The scale of the challenge is significant: drillers typically pump 30 Olympic-sized swimming pools of water into an oil well to fracture the surrounding rocks. In return, as much as 10 barrels come rushing back out for every one barrel of crude, Raymond James analyst Marshall Adkins said in a note to clients on Monday.
Given that recycling efforts aren’t robust enough to handle the 17.5 MMbbl of dirty water produced daily in the Permian Basin of West Texas and New Mexico, oil companies have to do something else with all that salty slurry, Adkins said. After all, so-called produced water is 10 times saltier than seawater.
“Most investors are simply unaware of the fact that as crude production grows, produced ‘dirty’ water grows even faster,” he wrote. “As the Permian Basin shifts further into manufacturing mode, the water growth we project will create the need for nearly 1,000 additional salt water disposal wells by 2030.”
Saltwater Disposal Revenue
Saltwater disposal wells generate revenue through fees collected for each barrel of water received for disposal and the sale of oil collected from the water delivered to the Facility. For example: a disposal facility that receives 20,000 barrels per day would generate $400K+ per month in net income factoring 0.5% oil concentration.
Permian Basin H2O
The Permian Basin is actually a water play that happens to produce more oil than anywhere else in the U.S. For every one barrel of oil produced, as many as ten barrels of water are also recovered. This waste water is sent via truck or pipeline to nearby saltwater disposal facilities for disposal.
According to Baker Hughes, as of April 2021 the U.S. Rig Count closed at 439 active rigs with 227 (52%) in the Permian Basin alone. The Energy Information Administration (EIA) predicts that 42,000 new oil and gas wells will be drilled and completed from 2018-2023 in the Permian Basin alone.
These new oil/gas wells will drive the saltwater disposal industry from $2.6 billion (2018) to $4.6 billion by 2023. The total capital spent on water management in the Permian Basin is expected to increase from $12.5 billion (2018) to $22.2 billion by 2023.
The Permian Basin is split into three distinct areas: the Midland Basin, Central Basin and Delaware Basin. The Delaware Basin produces a higher water to oil ratio than the Midland Basin according to the Texas Railroad Commission. The Delaware Basin generates 4-8 barrels of water for every one barrel of oil produced or more while the Midland Basin generates 3-5 barrels of water per barrel of oil on average.
The Permian Basin produces more than 4.8MM barrels of oil per day and 15-20MM barrels of water per day currently. Water production across the trend is expected to increase to 25 million barrels per day by 2023 which presents a significant opportunity to capitalize on the growth ahead.
These are dynamic times in the oil and gas industry.
Experts from every sector of the exploration industry project that the next 10 years will be the best we have seen in many years. The time to invest is now! Seidler’s experience, success, reliability, knowledge, and commitment to excellence certainly position us to actively seek solid oil and gas prospects. We invite you to consider joining the Seidler Team in investing in the future of domestic oil and gas development.
Technological advances in Hydraulic Fracking and Stimulation methodology are currently proving to produce substantial production rates in South Texas. This growth is expected to continue over the next decade and SOGLP is planning to participate directly.
Seidler Oil & Gas LP provides participation opportunities in Oil and Gas through Direct Participation Programs. (DPP’s.) This allows qualified Participates to partake of the unique and substantial tax benefits and potential cash flow associated with oil and gas developments. We are experiencing real growth with Private Participates in the energy sector.
Working through value oriented DPP’s in oil and gas developments, with the right Operator, can potentially prove to be a strategy that will produce years or even decades of monthly cash flow. We know it can simultaneously minimize tax liabilities, while at the same time hedging your assets from a dangerous threat to the US Dollar called hyper-inflation.
If risk is managed and calculated properly by implementing all the advances in modern technology, we believe a new day will come. Our Partners come with seasoned experience, decades of wisdom and most importantly, operate from a cornerstone of integrity.
This is aligning yourself for direct benefit from the source and putting your risk capital into a commodity that is growing in demand, has a finite abundance and is expected by most Geo-scientist and Geologist to be in steady demand for the near and long term foreseeable future.
If you have an active interest in earning direct benefits from a prudent, conservative, value-oriented approach that really does make good sense, we look forward to hearing from you. Contact Us!
Frank Seidler
President/ Seidler Oil and Gas
