HOUSTON, Texas: Two strong earthquakes hit the Permian Basin, the largest U.S. oilfield, this week, shaking the Texas oil industry and raising concerns about how wastewater disposal may be causing more earthquakes, experts said.

The U.S. Geological Survey reported that a magnitude 5.0 earthquake struck on February 14, followed by a magnitude 4.7 quake on February 18 in Culberson County, West Texas. Due to increased earthquake activity linked to fracking, the Texas Railroad Commission (RRC), the state's oil regulator, is already monitoring this area.

Fracking produces saltwater as a byproduct, which is injected back into the ground for disposal. This process has been linked to earthquakes in Texas and Oklahoma, leading regulators in both states to place limits on wastewater injection to reduce seismic activity. The strongest earthquake recorded in Culberson County was a 5.4 magnitude quake in 2022.

Kelly Bennett, CEO of B3 Insight, a company that provides water management data for the oil industry, said these recent earthquakes may push forward new projects to find better ways to handle wastewater. One such project is by WaterBridge in the Delaware Basin, which plans to build infrastructure for BPX to manage up to 600,000 barrels of wastewater per day over the next three years.

Bennett believes that the cost of managing wastewater will rise as companies work to move it away from high-risk areas. The RRC is considering new rules for saltwater disposal wells, including stricter limits on shallow injections and continued monitoring of deep underground activity, according to energy advisor Laura Capper.

The recent earthquakes could lead to further restrictions on wastewater disposal. Last year, the RRC banned saltwater injections in Northern Culberson-Reeves after seven earthquakes, including one of magnitude 5.2, struck within five weeks. Capper noted that earthquake activity in the region has since decreased, likely due to these restrictions.

The RRC has not yet commented on the latest developments.