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February 26, 2026

Can New Mexico turn oil field wastewater into a critical resource?

Recycling opportunities for hydrogen power and minerals, study says

Oil and gas production generates a large volume of water. Targeted treatment can produce water suitable for industrial uses and a concentrated brine for disposal. Adobe Stock

Given New Mexico’s growing volume of castoff water from oil and gas drilling operations — and evolving regulations — the state could serve as a testbed for reusing this waste stream in new ways, according to an analysis from Los Alamos National Laboratory researchers published in Environmental Challenges journal.

Read the paper

Why this matters: If treated safely for fit-for-purpose uses, this waste product could support hydrogen production for fuel, mineral extraction and agriculture. Arid regions of the Southwest with scarce freshwater could especially benefit from reuse innovations.

What they did: The team evaluated reuse options through policy, environmental risk, treatment feasibility and public-comment analysis, focusing on New Mexico’s high-production Permian Basin oil field and current rulemaking.

  • Their work builds on a 2023 Los Alamos study that investigated the economic feasibility of produced water treatment.

How it works: The scientists saw the most potential for targeted treatment matched to specific industrial uses. They didn’t advocate for treating produced oil field water to drinking standards. 

What to know: In 2023, New Mexico oil and gas drilling operations produced 2.3 billion barrels of wastewater. Most of the produced water is reused for oil recovery (e.g., hydraulic fracturing) or it’s deep well injected for disposal.

Funding: Los Alamos National Laboratory Technology Evaluation and Demonstration program.

LA-UR-26-21283

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