[Editor's note: A version of this story appears in the May 2018 edition of Oil and Gas Investor. Subscribe to the magazine here.]
The Permian’s rock is great, but what about all the water? Investors and prospective investors began asking this several years ago about the Midland Basin as shale development ramped up.
In the Delaware, however, the matter of water has taken on the scale of the “Hold my beer” meme. Its outdoing of the Midland is in the math: While water in the West Texas desert for fracture stimulations in the Delaware is as scarce as in the Midland, the ratio of produced water vs. oil in the Delaware can be as much as 7:1. In the Midland, the ratio tends to be 2:1.