The Value of Produced Water for Agriculture: A Cost-Benefit Analysis
Introduction
As water availability declines across the High Plains, the agricultural sector faces increasing challenges in sustaining irrigation for crops. Many farmers rely on groundwater, but pumping costs are rising due to energy expenses and declining water tables. Meanwhile, the oil and gas industry produces vast amounts of water as a byproduct of drilling operations. This raises an important question: Can treated produced water be a viable and cost-effective irrigation source for farmers?
Understanding the Cost of Irrigation Water
Water Consumption by Crop in West Texas
The table below highlights the per-acre irrigation requirements for common crops in the region:
Estimated Energy Cost for Irrigation
For full budget estimates, visit Texas A&M AgriLife Budgets: [Texas A&M AgriLife Budgets](https://agecoext.tamu.edu/resources/crop-livestock-budgets/budgets-by-extension-district/district-2-south-plains/2025-district-2-texas-crop-and-livestock-budgets/)
Potential Price of Produced Water
To be competitive, produced water must be priced in line with—or lower than—existing irrigation costs. Farmers are currently spending around $10 per acre-inch ($120 per acre-foot) just for energy to pump groundwater. If produced water can be treated and delivered at a comparable or lower price, it could provide a sustainable alternative.
Baseline for Competitiveness:
10 per acre-inch ($120 per acre-foot) is the breakeven energy cost for irrigation.
If produced water is available for $8 per acre-inch ($96 per acre-foot) or less, it becomes an economically attractive alternative.
If treatment and transport costs exceed $15 per acre-inch ($180 per acre-foot), it may not be viable compared to existing groundwater.
Economic Considerations for Oil & Gas Companies
For the oil and gas industry, the disposal of produced water is a major operational cost. If water treatment can be achieved at a lower cost than traditional disposal methods, selling water to farmers could provide a new revenue stream while also reducing regulatory burdens.
Key Factors in Profitability:
Treatment Cost: Bringing produced water to an acceptable irrigation quality.
Delivery Infrastructure: Transporting water to farms affordably.
Market Willingness: Ensuring farmers find it economically viable to purchase.
Conclusion: A Win-Win for Agriculture & Energy
If produced water can be treated to meet irrigation standards at a competitive price, it has the potential to serve as an alternative water source for farmers while providing a cost-saving disposal method for oil and gas companies. With increasing water scarcity, collaboration between agriculture and energy could provide long-term sustainability for both industries.
SARA is actively researching and advocating for responsible water use in agriculture. Contact us to learn more about how produced water could support farmers in the High Plains.
