Exceptional Drought and Unconventional Energy Production

Reid Stevens,Gregory Torell

doi:10.3390/su10041218

Abstract

The hydraulic fracturing boom in Texas required massive water flows. Beginning in the summer of 2011, water became scarce as a prolonged heat wave and subsequent severe drought spread across the state. Oil and gas producers working in drought areas needed to purchase expensive local water or transport water from a non-drought county far from the drill site. In response to decreased water availability in drought areas, these producers completed fewer wells and completed wells that used less water. This decrease in well-level water use had a measurable effect on the amount of oil and gas produced by wells completed during exceptional conditions.

Highlights

In the late 2000s, high global oil prices and technological innovation in hydraulic fracturing led to a dramatic increase in Texas oil production
While some operators respond to drought conditions by completing fewer wells, our results show that operators responded to drought conditions by completing somewhat less water-intensive wells with shorter perforation zones, which had a measurable effect on production
We found that operators working in drought areas reduced the amount of water used in each well

Summary

Introduction

In the late 2000s, high global oil prices and technological innovation in hydraulic fracturing led to a dramatic increase in Texas oil production. Texas has shale deposits throughout the state, and in the sample period, horizontal wells were completed in 206 of the 254 counties in Texas This variation in drought conditions and hydraulic fracturing activity is essential to identifying the effect of water scarcity on hydraulic fracturing. Operators completed wells with shorter perforated zones and that used less water These adjustments in the type of well completed in drought counties have important implications for production. While some operators respond to drought conditions by completing fewer wells, our results show that operators responded to drought conditions by completing somewhat less water-intensive wells with shorter perforation zones, which had a measurable effect on production These wells recovered less oil and gas than would have been recovered with a well completed in non-drought conditions. The difference between dew point temperature and air temperature measures relative humidity (a large difference means very humid; a small difference means less so); during the sample period, the weather across Texas was somewhat humid

Theory and Empirical Models

Results

Conclusions