Producers’ search for water for fracking was the original water challenge.
While still part of the equation, it is now overshadowed by increasing flowback and produced water handling needs! In the Permian alone, produced water volume could reach 36MMbbl/d volume by 2023.
In 2016 88% of water was hauled by truck, by 2018 that dropped to 59%. Percentage will likely continue to drop leveling out at a ratio like that of crude, estimated at 30%.
At 30% of 36MMbbl/day, 10.8MMbbl/day will be transported by truck alone.
The produced water trucking market remains fragmented and unorganized – been described as a “pick up the phone” marketplace. Water transport industry faces increased upheaval and performance uncertainty.
Future of Water Transport will rely on new technology systems, transparency in pricing , and better hauling performance directly influencing timely payroll and invoicing.
Water hauling industry should be a cash flow positive endeavor, not one filled with uncertainty and lack of performance.