16 December 2022 | Other

Earthquakes add new challenges to oil production in Texas

Costs for oil producers will increase due to earthquakes in West Texas. Earlier, oil companies have already felt the effects of inflation and shortage of equipment.

The growing number of earthquakes in the Oklahoma and Texas oil fields is associated with wastewater that forms during oil and gas production and is often pumped back underground. The regulatory authorities of these states have set a limit on the amount of water that can be pumped back, especially into deep wells.

The magnitude of the earthquake that occurred in mid-November was 5.4. In case of another similar natural phenomenon in Texas with a magnitude of 4.5 or more, all deep wells in this area will be closed for 24 months.

According to Laura Capper, a chief executive of CAP Resources, a water management and risk mitigation consulting firm, there remains an extremely high probability of another powerful earthquake at this point.

She also noted that a complete shutdown of deep wells in the zone could cause significant logistical difficulties to maintain oil and gas production from high-producing fields in New Mexico and West Texas.

Company MarketCheese
Period: 20.06.2025 Expectation: 1430 pips
USDCAD may rise amid trade conflicts resolution
11 June 2025 106
Elizabeth_Kuzmicheva
Elizabeth_Kuzmicheva

Listed among the best MarketCheese authors
1st in the segments "Metals" and "Oil and gas"
Period: 17.06.2025 Expectation: 1500 pips
New round of US inflation growth to push EURUSD down to 1.13 level
11 June 2025 69
Period: 18.06.2025 Expectation: 47000 pips
Selling bitcoin targeting 104,000 as it approaches its all-time high
10 June 2025 89
Period: 16.06.2025 Expectation: 2200 pips
Tesla shares recover as Trump and Musk feud eases
10 June 2025 95
Period: 30.06.2025 Expectation: 1800 pips
Silver to continue growth despite short-term correction
09 June 2025 147
Elizabeth_Kuzmicheva
Elizabeth_Kuzmicheva

Listed among the best MarketCheese authors
1st in the segments "Metals" and "Oil and gas"
Gold sell
Period: 13.06.2025 Expectation: 4000 pips
Gold to fall to six-month trend line at 3,280
09 June 2025 244
Go to forecasts