Market Insights

Water—oil and gas industry’s biggest challenge

water, oil, gas, US, Government Accountability Office, rainfall, freshwater

USA could soon become the next key player in oil and gas industry. However, industry activity in some regions has led to a matter of distress—water management. Gallons of water is being wasted or turned into saline. Unfortunately, limited supply of rainfall and freshwater has plunged nation into crisis.

In essence, water is an importance source of life—and the oil and gas industry thrives on water. New oil wells positively impact economic growth, but are least effective when it comes to environment protection. Value Walk cites, “Horizontal drilling and fracking operations use large amounts of water. In 2008, an average of just 5,618 barrels of water was used for the injection stage of fracking according to the USGS. In 2014, that ballooned to 128,102 barrels of water for a oil well, and 162,906 barrels for a gas well.”

For such industries, the challenge lies in obtaining water for drilling new wells and ways to manage wastewater after extraction. In any case, the regions will be largely affected in this regard. The Government Accountability Office predicts that 40 out of 50 states will face water shortage by 2023.

A Barclay’s report furnishes details on the factors that play a key role in the industry’s impact on the USA. Owing to the present situation, the social pressure on the oil and gas industry is immense and requires immediate relief. As a national prerogative, regulatory policies and goals need to be revised, and water innovation should be made compulsory for healthy practices.

MI Newsdesk

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