For generations, the Texas oil and natural gas industry has produced reliable energy resources that fuel our daily lives and has led the charge on innovative technologies to advance us to achieve American energy dominance.
TXOGA
Todd Staples, TXOGA
Todd Staples, President of TXOGA
Now, another opportunity is on the horizon for the industry to wield water resources to bolster communities across the Lone Star State.
In November 2025, Texas voters overwhelmingly approved a proposition to allocate $20 billion toward long-term water and infrastructure projects over the next two decades to strengthen the state's water supply. One of the largest untapped water resources is not found in a reservoir or an aquifer; it is being produced each day by the oil and natural gas industry.
Produced water is the naturally occurring water brought to the surface during oil and natural gas production from deep geologic formations. In the Permian Basin, one of the most prolific producing regions in the world, millions of barrels emerge each day as a byproduct of energy production. The oil and natural gas industry has spent years improving how produced water is managed. Operators recycle water for reuse within oilfield operations; as a result, the use of freshwater sources has declined significantly over the past decade. The next question is whether treated produced water can serve purposes beyond the energy sector.
The evidence shows that it can. Academia and industry have been studying treatment technology, toxicology and beneficial uses outside the oilfield for many years. Produced Water Consortiums that bring academia, industry and other interested stakeholders together have been set up in several states around the country. Research conducted by the Texas Produced Water Consortium at Texas Tech University found advanced treatment technologies can treat produced water to meet standards for end uses outside the oilfield, including land application for crops, industrial uses and discharging into rivers and streams.
Within the Permian Basin region, agriculture accounts for approximately 75% of total water use, making irrigation a prime opportunity for beneficial reuse. Treated produced water could also support rangeland restoration, industrial facilities and power generation, benefiting other industries beyond the oil and natural gas industry.
While the cost of implementation is a major obstacle to full expansion, industry operators are wholly committed to developing successful programs, and pilot facilities have been operating for some time in the Permian. Treatment runs about double the cost of disposal, but with engineering innovations and technological advancements, obstacles can be overcome. Few industries have demonstrated this more consistently than America's reliable energy sector.
Texas policymakers have already begun laying the regulatory foundation for using produced water for beneficial use. By moving to consolidate land application permitting under the Texas Commission on Environmental Quality, an agency with a long history of safe wastewater regulation and a shared commitment from operators to maintain a strict, science-backed permitting framework, Texas can protect public health and safeguard the environment while putting this water to work.
In Texas, water security and economic security go hand-in-hand. With a clear mandate from voters and strict, science-based oversight, Texas is ready to deploy these technologies and secure our water future.
For more information, visit txoga.org.
