Permian Basin operators have been raising more rigs and ramping up completions of late, but persistent water issues could be a material risk to future profitability and production, according to Wood Mackenzie. The new study by the consulting firm examined a “growing water situation” in the Permian and modeled the combined impact that rising water volumes and increasing water costs could have on future breakevens and oil production growth. “As operator activity continues to pick up in the Permian, we expect over 2 million b/d of oil supply growth over the next five years,” said principal analyst Ryan Duman with the Lower 48 upstream team. “While attainable, the list of operational risks grows too and the least appreciated of these is produced water. “The combination of rising volumes and higher disposal costs threaten to shift cost curves and pose a growing risk to oil production growth in the Permian.” […]