Water quality and quantity is of global environmental concern, presenting risks and opportunities for the industry.

Water is used throughout the project life cycle of oil, gas and alternative energy activities and is core to business continuity. Meanwhile, the water supply and treatment sector relies heavily on energy produced by the oil and gas industry to collect, treat and transport water, with the sector’s energy demand expected to double by 2040.

Water stewardship is one of the key principles underpinning effective water management practices. It involves not only addressing risks and impacts associated with water use, but also ensuring that water is utilised in a manner that is socially equitable, environmentally sustainable, and economically beneficial, achieved through a stakeholder-inclusive process (Alliance for Water Stewardship [AWS], 2014).

The industry is committed to managing its consumption of water, working to protect the quality of water through project life cycles and contribute to SDG 5 – Clean water and sanitation. Water recycling is quickly becoming good practice in the industry, and the industry is also leading on the emerging topic of water positive measures, making more water available than it uses.

Member progress

93% of members
Have water stewardship strategies in place*

Examples of member action

  • A seawater treatment plant to limit pressure on the Tigris and Euphrates
    Map-pinIraq

    In 2023, the Iraqi government and TotalEnergies finalised an agreement for a multi-energy project. One of the components of this project provides for the construction of a seawater treatment plant.

    In Iraq, to maintain pressure in the reservoirs of the oil fields in the Basra region, a large quantity of water is withdrawn by the various oil operators from the country’s two main rivers (the Tigris and Euphrates), as well as from groundwater. The multi-energy project that the Iraqi authorities have entrusted to TotalEnergies includes the construction of a seawater treatment plant with a capacity of 290 million m3 per year, in Khor Zubair. This project will help reduce the significant water pressure exerted on the two main rivers, supply water for the local population and agricultural use, while providing the volume of water necessary to maintain the pressure in the oil fields of operators in this region.

    On the Ratawi field where TotalEnergies is the operator, water from a deep saline aquifer will replace river water from 2025, until when water from the seawater treatment plant becomes available, when the commissioning of the plant planned for 2027, is completed.

    Learn more (p.10)

  • Onshore water management app

    Murphy Oil continues to evolve and enhance the water management software application that was first developed for its Tupper Montney asset in 2019. Today, the app supports its entire onshore water operations in the US and Canada with real-time monitoring, reporting and alerts.

    Features include:

    • Tracking of produced water pond leak detection volumes
    • Tracking of daily and monthly water pond volume, composition and inspections
    • The ability to perform data analytics
    • Calculating the ratio of produced water to freshwater consumption for each well
    • Providing an auditable data trail and automated reporting

    With better data reporting, analysis and sharing capabilities, Murphy Oil has realised the following benefits:

    • Early detection of potential leaks from produced water ponds
    • Quicker, easier integration of water management considerations into operational decisions
    • Improved planning and forecasting, leading to cost reductions
    • Increased produced water recycling and lowered disposal
    • Enhanced reporting capability

    Learn more

  • WaterWeb: lowering the costs and environmental impacts of produced water

    Halliburton's WaterWeb® conformance service gives operators the ability to lower the treatment and disposal costs of produced water, along with the associated environmental impacts.

    To accomplish this, the WaterWeb® service uses a polymer chemistry to impede water flow while enhancing hydrocarbon flow to the wellbore in any type of reservoir — including sandstone and carbonate formations.

    As an example of this technology's capabilities, Halliburton deployed the WaterWeb® service in an offshore carbonate reservoir, where it reduced the water cut by 22% and increased hydrocarbon production to more than 600 barrels of oil per day.

    Learn more

  • Improving the quality and availability of water in Permian basin

    In 2022, almost half of ExxonMobil’s net US oil and natural gas production came from the Permian Basin. As it works to responsibly develop its assets in the region, ExxonMobil is working to safeguard the availability and quality of its water sources.

    To minimise withdrawal from natural water resources and mitigate risks from water use in its operations, it seeks to:

    • Prioritise sourcing from recycled produced water to conserve resources of fresh and brackish water.
    • Minimise 'downhole' water disposal – that is, water discharged into underground formations – through technology and operational optimisation.
    • Maximise opportunities to reuse produced water, leveraging its capabilities in risk management, research, and technology.
    • Support local and regional water conservation efforts, such as the National Fish and Wildlife Foundation’s Pecos Watershed Conservation Initiative.

    Implemented in 2021, its comprehensive water management roadmap for 10 years of Permian development identifies opportunities to reduce freshwater intake, as well as manage disposal, and guides its efforts to achieve industry-leading performance in water management. It expects this roadmap will be updated as needed. In 2022, it sourced more than 130 million barrels of water from recycled Permian produced water, comprising over half (64%) of its water needs for hydraulic fracturing operations. The remaining water needed came from brackish sources.

    Additionally, the company is increasingly using recycled produced water in its operations, including the Fayetteville and Marcellus shale gas operations. All told, it is working with industry members, technology solution providers, researchers, and regulators through collaboration, technology, and operational optimisation to help improve industry water management in the Permian and beyond.

    Learn more

Related resources

Good practice guidance, awareness briefings and webinars to support companies to responsibly manage water across the value chain.

View the Ipieca Principles toolkit and Ipieca-WBCSD SDG Roadmap for more suggested actions, useful resources and reference points.


*Stats based on desktop research conducted on member companies July- September 2024.

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