It has been a few months since the collapse of the Vienna Alliance talks and the full, global extent of coronavirus (COVID-19) started to become apparent. While oil prices have improved somewhat and some optimism has emerged since then, it's clear that the damage wrought during that short stretch of time will be severe and long lasting.
This is certainly true in US upstream activity, which will of course subsequently affect the water market. Our research suggests that US land drilling and completions (D&C) water demand will decrease 48% during 2020 as a result of the capital spending reductions leading to drastic reductions in D&C activity levels. However, with a rebound in activity expected in 2022, the overall D&C water market will in fact grow at a 7% compound annual growth rate from 2020 to 2024.
The Permian activity reduction will significantly affect its market share in terms of drilling water demand. This basin accounted for 41% of total US drilling water requirements in 2019, but during 2020 it is expected to account only for 28%. The Permian Basin and Mid-Continent will be the main drivers for the fracture water demand reduction, accounting for 56% of the volume reduction in 2020.
https://pubs.spe.org/en/jpt/jpt-article-detail/?art=7146
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