Texas oil regulator launches Permian Basin probe after earthquakes

The Railroad Commission of Texas, the state’s oil regulator, said Monday it has opened an investigation after a series of earthquakes hit the Permian Basin last week.

The regulator said it is inspecting disposal wells within two-and-a-half miles of the cluster of temblors in the Camp Springs area, which is ~100 miles northeast of Midland in the heart of the oil-rich Permian.

Five earthquakes with a magnitude of 4.0 or greater have hit West Texas since July 23, including a 5.1-magnitude event on Friday, according to the Texas Seismological Network.

“In efforts to reduce seismicity possibly caused by underground injection of produced water, several operators in the area have converted deep saltwater disposal wells to shallow saltwater disposal wells within the last year,” the Railroad Commission said.

Top operators in the Permian Basin include Exxon Mobil (NYSE:XOM), Diamondback Energy (FANG), EOG Resources (EOG), ConocoPhillips (COP), Occidental Petroleum (OXY), Devon Energy (DVN), Chevron (CVX), Coterra Energy (CTRA), SM Energy (SM), Ovintiv (OVV), APA Corp. (APA), Vital Energy (VTLE).