California Farms Use Wastewater for Irrigation

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California’s epic drought is pushing Big Oil to solve a problem it’s struggled with for decades: what to do with the billions of gallons of wastewater that gush out of wells every year 

California’s epic drought is pushing Big Oil to solve a problem it’s struggled with for decades: what to do with the billions of gallons of wastewater that gush out of wells every year.

Golden State drillers have pumped much of that liquid back underground into disposal wells. Now, amid a four-year dry spell, more companies are looking to recycle their water or sell it to parched farms as the industry tries to get ahead of environmental lawsuits and new regulations.

The trend could have implications for oil patches across the country. With fracking boosting the industry’s thirst for water, companies have run into conflicts from Texas to Colorado to Pennsylvania. California could be an incubator for conservation efforts that have so far failed to gain traction elsewhere in the U.S.

Drillers may have little choice. The state’s 50,000 disposal wells have come under increased scrutiny this year, after regulators said they’d mistakenly allowed companies to inject wastewater near underground drinking supplies. Environmental groups sued the state to stop the practice at 2,500 sites considered most sensitive.

A win for environmentalists could drive up disposal prices and delay drilling by months for Chevron Corp., Linn Energy LLC and other companies, according to a June 12 report by Bloomberg Intelligence analysts Brandon Barnes and Matthew Kerner.

Conservation Rising

Conservation is “suddenly leaping to the forefront,” said Laura Capper, founder of Houston-based CAP Resources, which advises the industry on water use. “You’re going to see a lot of retrofit programs. If they’re not already recycling, they’ll be adapting.”

Sarah Nordin, a spokeswoman at Linn, didn’t immediately return messages seeking comment on the lawsuit. Cam Van Ast, a Chevron spokesman, declined to discuss it.

In central California’s San Joaquin Valley, Chevron piped almost 8 billion gallons of treated wastewater to almond and pistachio farmers last year. California Resources Corp., the state’s biggest oil producer, plans to quadruple the water it sells to growers, Chief Executive Officer Todd Stevens told investors at an April conference.

An environmental group, Water Defense, questioned whether Chevron’s sales to farmers created the risk of industrial chemicals contaminating the food chain. The local water-quality control board ordered the company to conduct tests and Chevron says it has met all the pollution standards in its permit.

Water Flow

One of the industry’s biggest headaches is what to do with the torrents of naturally occurring “produced water” that come out of wells along with oil and gas. Members of the Western States Petroleum Association, a group of major drillers including Chevron and CRC, will unearth more than 92 billion gallons of wastewater this year, based on a May survey by the association.

The water’s typically too salty to be potable, although in parts of the state it can be treated enough for use by farmers. The vast majority of the waste is either reused for drilling or injected into disposal wells.

That may change thanks to businesses such as OriginClear Inc., a Los Angeles-based licensor of technology that purifies wastewater by zapping it with electric pulses. OriginClear has talked with a variety of small and large operators about its technology, William Charneski, OriginClear’s senior vice president, said in a Dallas interview.

Other companies are using technologies developed to treat petroleum-contaminated land to better cleanse their wastewater, said Barnes, the Bloomberg Intelligence analyst.

Source: Bloomberg

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