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Select Water Solutions and Occidental's Milestone in Sustainable Water Management

Select Water Solutions, Inc. (NYSE: WTTR), a key player in sustainable water and technology solutions for the energy sector, has reached significant progress in its collaborative initiative with Occidental, one of America's largest oil and gas producers. Their joint effort, particularly with the development of the Lost Tank recycling facility in Lea County, New Mexico, aims to diminish the reliance on freshwater and disposal methods in the Northern Delaware Basin.

The Lost Tank facility commenced operations in 2022 with an impressive recycling capacity of 60,000 barrels per day, and it has since expanded to handle 180,000 barrels daily, supported by a robust storage capacity of 1.9 million barrels. So far, it has successfully recycled over 50 million barrels of produced water, contributing significantly to reducing environmental impacts while addressing the increasing water management needs characteristic of the region.

In addition to the innovative recycling capabilities, Select Water Solutions has constructed a state-of-the-art 13-mile water pipeline linking produced water facilities to Occidental's Mesa Verde assets in Southeast New Mexico. This infrastructure is crucial for increasing flexibility in water recycling, enabling more efficient treatment, reuse, and redirection to various operators, which subsequently minimizes disposal volumes and aligns with the operational demands in the area.

The advanced automation technology utilized in the system allows for dynamic water balancing across the entire network. This means water can be treated and redistributed effectively, which aligns perfectly with the changing schedules and operational requirements of industry players. There are plans to continue expanding pipeline connectivity by 2025, forecasting a total storage capacity enhancement to 12 million barrels.

John Schmitz, Chairman, President, and CEO of Select, stated, "This facility underscores our commitment to sustainability and innovation. By focusing on produced water recycling, we aim to reduce freshwater dependence and disposal volumes, thereby supporting environmentally responsible water infrastructure in the Delaware Basin."

The establishment and continuous enhancement of the Lost Tank facility exemplify the ongoing partnership fortifying sustainable water management practices around the Permian Basin. This partnership traces its origins back to the South Curtis Ranch operation in Martin County, Texas, and has evolved to integrate modern technological advancements for better environmental stewardship.

Babatunde Cole, President and General Manager of Occidental’s Delaware Basin Business Unit, also emphasized the importance of this development, stating, "Through the treatment and reuse of produced water, we leverage innovation and collaboration to optimize and preserve water. Our commitment to sustainable practices in effective water management brings benefits not just to the Delaware Basin but beyond."

Environmental Commitment

In an era marked by increasing environmental concerns, the focus on sustainable practices like the ones embodied in the Lost Tank facility and its operations is pivotal. Select Water Solutions is determined to lead the industry by showcasing that environmental responsibility can coexist with the operational success of energy companies. Their approach to water—viewing it as a valuable asset rather than a mere disposable commodity—is an integral part of their ethos.

These initiatives address the pressing need for responsible water use within the energy sector while also spurring advancements in technology and operational efficiency. As more entities recognize the importance of environmentally conscious practices, the success of the Lost Tank facility could serve as a blueprint for other regions facing similar challenges.

Through such collaborative efforts and a strong commitment to innovation, Select Water Solutions and Occidental not only contribute to a sustainable future but also set an example within the industry. The progress made at the Lost Tank facility is just the beginning of a broader movement toward better water management practices that could have lasting impacts on both the environment and the industry.

For more information on Select Water Solutions and its commitment to sustainable practices, visit their website at Select Water Solutions.