Pioneer Natural Resources to use treated effluents for its oil and gas operations in Texas, US

US based energy company Pioneer Natural Resources has signed a long-term $117m deal with the city of Odessa in Texas to use treated municipal wastewater from the city each day at its nearby oilfields.

The deal, which will be valid for 11 years, is expected to assist the firm in conservation of water and offer it benefits of cost savings as well.

Oil and gas companies trying to extract crude oil from shale rock have been trying to reduce their operational expenses as the cost of crude has dipped to its lowest in six years and is currently priced at about $40 a barrel.

Sourcing water for the operations and its transportation can consume up to 10% of the well drilling and fracking costs, reports Reuters.

Besides seeking cost saving benefits, the producers are also trying to ease the long-term risks of water scarcity in the arid Permian Basin of West Texas, which is home to country’s major oilfields.

Apache is also seeking cheaper and environment friendly water sources for fracking operations.

Both the firms, Pioneer and Apache, had opted for Permian’s brackish aquifers for their energy operations, since the water from which is considered unsuitable for drinking.

The firms have also tried to recycle water used for fracking operations and to use groundwater found while drilling, for its operations.

Pioneer has also started construction of a pipeline network which will enable transportation of the reclaimed water from Odessa’s sewage plant to one of its oilfields located at a distance of around 20 miles.

The city’s sewage plant treats human waste and water from activities including bathing and food preparation.

Odessa city attorney Larry Long, who had also negotiated the deal with Pioneer, said: "We didn’t think we were making our highest and best use of our effluent water, we were using a lot for irrigation.

"We thought it had more value going to the oil companies."