Surge Energy announced Friday it has conserved more than seven billion gallons of freshwater since 2017 by using recycled water for hydraulic fracturing in the Permian Basin. This milestone, achieved in July, highlights a growing trend in the oil and gas industry to manage water resources more sustainably.
The company, which began its water recycling program in 2017, has invested significantly in water handling infrastructure to support its conservation efforts. This includes the construction of four recycling facilities and approximately 217 miles of water pipelines, along with company-owned disposal wells. This infrastructure allows Surge Energy to treat and reuse produced water—water that is a natural byproduct of oil and gas extraction—for its completion operations, reducing its reliance on local freshwater sources.
According to the company, this strategy not only helps with environmental stewardship but also contributes to operational efficiency. The investment in water infrastructure has been cited as a key factor in keeping the company's lease operating expenses below $5 per barrel of oil equivalent for six consecutive years.
"We believe Surge is a leader in water management and this milestone is the evidence of our long-standing commitment to responsible water handling in the Permian Basin," said Development Manager Kade McCollough. The Permian Basin, a critical oil-producing region spanning parts of West Texas and southeastern New Mexico, faces increasing scrutiny over its water usage due to its arid climate and competing demands from agriculture and municipalities.
The broader industry has been exploring similar water management strategies, with some companies investing in advanced treatment technologies and water-sharing agreements to minimize their environmental footprint and reduce operational costs. The use of recycled water is a practice that has gained traction as a way to address public and regulatory concerns about water consumption in energy production.
Chris Alonzo, senior vice president of development and operations, highlighted the financial benefits of the program. "Surge's cost structure is top-tier in the Permian Basin," he said, attributing this in part to the company's water infrastructure. The company's focus on reusing water for completion operations aligns with a wider industry push toward more efficient and sustainable practices in response to environmental pressures and market demands for greater corporate social responsibility.
By Michael Kern for Oilprice.com