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
Trio Petroleum to Increase Monterey County Oil Production
2024-04-15 - Trio Petroleum’s HH-1 well in McCool Ranch and the HV-3A well in the Presidents Field collectively produce about 75 bbl/d.
Sangomar FPSO Arrives Offshore Senegal
2024-02-13 - Woodside’s Sangomar Field on track to start production in mid-2024.
Exxon Mobil Green-lights $12.7B Whiptail Project Offshore Guyana
2024-04-12 - Exxon Mobil’s sixth development in the Stabroek Block will add 250,000 bbl/d capacity when it starts production in 2027.
CNOOC Makes 100 MMton Oilfield Discovery in Bohai Sea
2024-03-18 - CNOOC said the Qinhuangdao 27-3 oilfield has been tested to produce approximately 742 bbl/d of oil from a single well.
CNOOC Finds Light Crude at Kaiping South Field
2024-03-07 - The deepwater Kaiping South Field in the South China Sea holds at least 100 MMtons of oil equivalent.