The Texas Chapter

The oil and gas industry in Texas generates an immense volume of produced water each year. In the Permian Basin alone, estimates suggest that approximately 3.9 billion barrels (over 168 billion gallons) of produced water are extracted annually. These brines, sourced from various basins such as the Smackover, Permian, Eagle Ford, and Anadarko, contain varying concentrations of lithium.



With growing environmental and economic considerations, upstream operators are actively exploring alternative disposal solutions for oilfield brines, including desalination. Despite the relatively low lithium concentrations, advancements in technology and market dynamics have made lithium extraction from these brines both technically viable and economically attractive.

Developing a lithium production industry in Texas presents a significant opportunity for multiple stakeholders. Upstream energy companies can create new revenue streams, local communities stand to benefit from job creation and economic growth, and environmental groups can support a more sustainable approach to produced water management. By diversifying Texas’ industrial landscape and fostering well-paid, local jobs, lithium extraction from oilfield brines has the potential to position the state as a leader in the emerging domestic supply chain for critical minerals.