About 60% of federal oil and gas drilling leases offered since 2017 are located in areas that are at risk of shortages and droughts, according to a report released Nov. 12.
The report from the left-leaning Center for American Progress argued an increase in drilling in these areas could worsen water shortages, a potential problem for ranchers, farmers, and municipalities, because it requires vast amounts of water.
“Oil and gas leasing in water-stressed areas has been largely unscrutinized but poses threats to water users across the West,” report author Jenny Rowland Shea said.
The average fracking job now consumes 13 million gallons (49 million liters) of water, up 40% in two years, according to a Reuters analysis of Permian producers’ data reported to FracFocus.org.
The Center for American Progress report analyzed leasing data from the Interior Department and a water risk map from the World Resources Institute.
In Nevada, 1,050 of 1,122 drilling leases were offered in areas of “high” or “extremely high” water stress, according to the report. In New Mexico, where the Permian Basin is partly located, 387 of 402 leases under the Trump administration, or 95%, are located in “extremely high” water-stress areas, it said.
The report urged the Interior Department’s Bureau of Land Management to weigh the impact of drilling on local water use in its permitting decisions.
“With climate change increasing water scarcity in much of the West, consideration of energy development impacts on watersheds can no longer be optional,” Rowland Shea said.
Recommended Reading
Baytex Completes Sale of Kerrobert Thermal Asset for $42MM
2024-12-23 - Baytex Energy’s divested Kerrobert non-core thermal asset can produce approximately 2,000 bbl/d of heavy oil.
Tracking Frac Equipment Conditions to Prevent Failures
2024-12-23 - A novel direct drive system and remote pump monitoring capability boosts efficiencies from inside and out.
Baker Hughes: US Drillers Keep Oil, NatGas Rigs Unchanged for Second Week
2024-12-20 - U.S. energy firms this week kept the number of oil and natural gas rigs unchanged for the second week in a row.
ProPetro Agrees to Provide Electric Fracking Services to Permian Operator
2024-12-19 - ProPetro Holding Corp. now has four electric fleets on contract.
EY: Three Themes That Will Drive Transformational M&A in 2025
2024-12-19 - Prices, consolidation and financial firepower will push deals forward, says EY.