Interview Synopsis

Permian water logistics

  • Multi Asset
  • Energy
  • North America

A senior manager of Permian at Oilfield Water Logistics LLC was interviewed by Third Bridge Forum regarding water logistics in the Permian Basin. Considering the millions of gallons required for and created from the fracking process, this offers prospective entrants into the water logistics market high returns.

Fracking Offers Prospective Entrants High Returns

While outlining the current trends in the industry, the specialist acknowledged that oil and gas companies were beginning to sell off their water assets and instead opting to outsource the service. The water logistics market has become increasingly competitive as private equity investors have funded more businesses to operate in the space. However, the specialist suggested this would eventually change as traditional oil and gas companies will eventually purchase private water logistics firms when the industry matures so they can operate in all three areas of the market: oil, gas and water.

Not all sections of the Permian Basin are created equal, noted the manager at Oilfield Water Logistics LLC. He explained which areas were most lucrative for companies focused on water, comparing wells in New Mexico and Texas. However, he suggested that the upsurge in competition had made it more difficult to execute on projects. After outlining the causes of this, the specialist told Third Bridge Forum how this could lead to further complications.

Other industry trends orientate around the recycling of wastewater, noted the specialist at Oilfield Water Logistics. He explained that this is another avenue that new water servicing companies could and perhaps should explore. The specialist also went on to speak about how difficult it is to lay piping, explaining how the materials used for the pipes and land restrictions would impact the timeline for this.

To access all the human insights from Third Bridge’s Permian Water Logistics Interview, click below to view the full transcript.

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The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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