Chevron USA Inc. has commissioned the construction of a pipeline to remove waste water from its extraction activities in the Permian Basin.
The subsidiary of Chevron Corp. entered into a contract with Pilot Water Solutions LLC (PWS) for the latter to “construct and operate a large diameter pipeline and related disposal infrastructure to safely, efficiently and effectively transport produced water away from Culberson County, Texas for shallow disposal in Reeves County, Texas,” PWS said in a news release Wednesday.
The pipeline will serve the Delaware Basin section.
PWS did not provide a construction schedule for the “long-term contract.”
“Our goal is to be the most reliable and sustainable middle water supplier in the energy sector,” PWS CEO Anuj Sharma said in the announcement. “A key pillar of our operations is to provide best-in-class services that effectively manage produced water, protect the environment and improve water sustainability in the Permian Basin.”
It has merged with Oilfield Water Logistics, keeping the PWS brand, in an attempt to lead midstream water operations in the northern Delaware Basin. The partnership would serve “the growing recycling needs in New Mexico,” they said in a joint announcement on Sept. 16.
“Together, PWS will have a nationwide footprint of 129 saltwater disposal wells, 850 miles of pipeline, 2.5 million barrels of water per day of disposal capacity and 34 “origin, recycling and evaporation in the Permian, Eagle Ford, Marcellus, Utica. , Haynesville and Rockies,” said last year’s announcement.
Chevron is a major producer in the Permian, a shale basin that spans about 75,000 miles west of Texas and eastern New Mexico. A 16 percent year-over-year increase in Chevron’s unconventional production in the Permian, an all-time high, pushed production to an average of three million net barrels of oil equivalent per day (boed) by 2022, according to the company’s annual report published company. February 23 Chevron expects to increase last year’s contribution of 707,000 boed from the Permian by 10 percent in 2023.
The annual report said measures to address groundwater and soil contamination comprised a large portion of Chevron’s $868 million in environmental liabilities by the end of 2022.
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