Oil & Gas

As Texas and New Mexico continue their respective legislative sessions, oil and gas regulations remain a heated issue, particularly in regions like the Permian Basin. The differences in regulations between the two states have created a complicated landscape for companies operating across state lines. This issue becomes especially relevant for energy sectors that rely heavily on water management, which is essential for drilling and production activities in the basin. These regulatory challenges affect not only operational efficiency but also sustainability efforts in the industry.

Mike Dyson, CEO of Infinity Water Solutions, an Austin-based company specializing in water management, spoke to ABC Big 2’s Chris Talley about the difficulties of navigating this regulatory maze. Dyson highlighted that the varying water regulations between New Mexico and Texas create significant challenges for companies trying to maintain operational standards across both states. His company, which focuses on sustainability in the oil and gas sector, has to adapt its strategies to comply with each state’s regulations, which can be conflicting and at times confusing. This inconsistency in regulations adds operational complexity for businesses in the region.

The regulatory landscape is expected to undergo significant changes, particularly with new policies set to take effect on July 1, 2025. These changes will have a profound impact on how companies manage their water resources and comply with state laws. With the evolving regulations, companies operating in the Permian Basin will need to make substantial adjustments to align with the new requirements. For businesses that span both states, this will likely mean a reevaluation of their operations to ensure compliance and sustainability.

As the legislative sessions progress, it is clear that the future of oil and gas operations in the region will be heavily influenced by these regulatory changes. The water woes that companies face today may intensify as new laws come into play, making it critical for industry leaders to stay informed and adapt to the shifting legal environment.