People have invested in the oil and gas industry as a way to grow their wealth for decades. The reason for this is that, even in an era of transformation in the energy sector, almost every country in the world is still dependent on oil and gas.
Salt water’ is the industry term used to describe hazardous water containing salt, hydrocarbons and other industrial waste products. Its disposal is highly regulated and requires skilled specialists to tackle the work.
Large quantities of salt water are trapped in the same geological formations as oil. During oil and gas production, this salt water must be removed and disposed of using class II salt water disposal wells.
The process is mandatory and, with an average of 10 times more salt water being extracted than oil, it is an enormous task that has led to the growth of a huge support industry alongside the drilling.
Salt water disposal wells are commonly old oil wells that are no longer in production.
The specialist companies that operate them generate revenue in two ways. First, by charging oil companies to remove their surplus salt water and, second, by selling oil that has been skimmed from the surface of the water.
The mandatory nature of the work makes the salt water disposal sector a relatively stable sector when oil prices drop, but buoyant when prices rise.
- Project lifespan 15-20 with early exit strategy.
- Net yields boosted by future increases in oil prices
- Regulatory and permit approval has been granted.
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