Texas Alliance of Energy Producers addresses produced water challenges in economic testimony

The Texas Senate Committee on Finance meeting on May 7, 2025, spotlighted critical water supply challenges facing the state, particularly in relation to the oil and gas industry. Carr Ingham, president of the Texas Alliance of Energy Producers, emphasized the dual crisis of water scarcity and the overwhelming amount of produced water generated by oil extraction. He reported that Texas produced over 2 billion barrels of crude oil in the past two years, resulting in approximately 10 billion gallons of produced water, which poses significant disposal challenges.

Ingham expressed strong support for HDR 7, advocating for an 8% allocation aimed at transforming produced water into a valuable resource. "This is a burden to the state of Texas," he stated, highlighting the urgent need for solutions that benefit both the environment and the economy.

Justin Yancey, president of the Texas Business Leadership Council, echoed these sentiments, calling for decisive action on water supply and infrastructure. He pointed out that Texas faces over $200 billion in unmet water needs, with $80 billion earmarked for new supply projects. Yancey urged the committee to consider additional flexibility in funding to address these pressing challenges as the state's population continues to grow rapidly.

The discussions underscored a critical intersection of energy production and water management, with both leaders advocating for strategic legislative action to secure Texas's water future. As the state grapples with these issues, the outcomes of HDR 7 could play a pivotal role in shaping sustainable solutions for Texas's water supply crisis.