A 4.4 magnitude earthquake that shook the largest U.S. shale field on April 10 could lead to further restrictions on how operators there can dispose of saltwater associated with their oil and gas production, analysts said.
The quake was the largest yet in the Stanton Seismic Response Area (SRA), a swath of the Permian Basin near Midland, Texas, where regulators were already monitoring seismic activity linked to disposal of saltwater, a natural byproduct of oil and gas production.
The Railroad Commission of Texas (RRC), which regulates the state's oil and natural gas industry, in 2022 developed a plan that aimed to prevent earthquakes measuring over magnitude 3.5 in that area by mid-May of this year.
Some deepwater disposal wells in the Stanton area were already shut as part of that plan.
"The only risk is that the event will trigger an expansion of the SRA," said Kelly Bennett, CEO of water analytics firm B3 Insights, adding that production in the area is unlikely to be affected.
The RRC in January of this year banned saltwater disposal injection in a separate part of the Permian, called the Northern Culberson-Reeves Seismic Response Area, after a series of seven earthquakes measuring up to magnitude 5.2 occurred in a span of just five weeks towards the end of last year.
That ban applied to 23 disposal wells in the area and impacted producers including Chevron, BP and Coterra Energy.
It unclear whether the RRC will enforce additional restrictions in Stanton after the April 10 earthquake, said Laura Capper, CEO of EnergyMakers Advisory Group, a water management and risk mitigation consultancy.
"But that was a noteworthy magnitude we wish to avoid," she added.
Recommended Reading
Message in a Bottle: Tracing Production from Zone to Wellhead
2024-04-30 - New tracers by RESMAN Energy Technology enable measurement while a well is still producing.
Aramco Credits Adaptability, Collaboration for Driving Innovation
2024-05-15 - Aramco’s implementation of different approaches has led to the creation and commercialization of newer products, said Max Deffenbaugh, principal scientist for Aramco, at the 2024 Offshore Technology Conference in Houston.
TGS Starts Up Multiclient Wind, Metaocean North Sea Campaign
2024-05-07 - TGS is utilizing two laser imaging and ranging buoys to receive detailed wind measurements and metaocean data, with the goal of supporting decision-making in wind lease rounds in the German Bright.
Fear Not, the Robots Have Reached Oil and Gas
2024-05-21 - Wood’s Iris Edge and ENVision software provide a new and more accurate way to not only discover emissions leaks, but also manage them.