Railroad Commissioner - Jim Wright

Episode Transcript

Speaker 1 (00:01):
Welcome to the nationally syndicated Energy Mix Radio show produced
by the Energy Network Media Group. The Energy Mixed Radio
Show will give you an inside look at the energy
industry and how it affects you by talking with industry leaders, experts,
and government officials on the Energy Mix Radio Show.

Speaker 2 (00:17):
And welcome back to the Energy Mix Radio Show, where
we're bringing clarity to the conversations shaping Texas energy and
community resilience. I'm your host, Kimbalatto, and today we're diving
into a topic that's hitting close to home.

Speaker 3 (00:30):
What are shortages in Corpus Christy and what they mean
for the future of energy in South Texas. Corpus Christy
has long been a cornerstone of our energy corridor, but
recent developments have seriously raised Conta Texas. The city with
over seven hundred and fifty seven million in low interest

(00:51):
loans and two hundred and thirty two in bonds to
fund their DESL infrastructure funds. To be again, the initial
planning and was well into the process, but then they
had new city council that came into place and the
vote moved from being forward with the de Salve to

(01:12):
being struck down. That leads Corpus Christy in a very
precurious position. Millions already have been borrowed from the state,
and the bonding rating now under scrut me, and growing
pressure from industry giants like Exxon Mobile and other operators
who depend on reliable water access has come to the forefront.

(01:33):
Joining me today is Chairman Jim Wright of the Texas
Railroad Commission, who's been working closely with Corpus Christie leadership
help them understand the gravity of this mom But we'll
talk about what happens next, what the governor has said,
and whether the State of Texas may step in, and
so let's get into commission right. Welcome back to the

(01:53):
Energy Mixed Radio show.

Speaker 4 (01:55):
Bim. Thank you so much for having me on. It's
always a pleasure to come and be on your show
with you, and thank you for proding all the good
things you do for our energy sources here in Texas.
Your question is surrounds Corpus Christi and the water situation
they find themselves in today, and I think it's important
that people know that Corpus Christie's current surface water sources

(02:16):
Lake Mathis and Choke Canyon are down below thirteen percent
in the reservoir today, which is pretty low. Fortunately, they
do have a pipeline that comes from Lake Texano that
delivers somewhere between sixty and seventy million gallons to the
community every day. Of course, they have a bigger need
when it comes to residential use and commercial use, which

(02:37):
is where some of the concerns have been coming from.
As we all know, they received a permit that they
worked very hard to get on desal in a location
they referred to as the Inner Harbor location. It started
out with actually three different estimates and one low, one
in the middle of the road, and then one that
came back very very high, and I thank yourself concerns

(02:59):
from the current council or some of the current council
members where they wanted to get more accuracy and what
that spend may be as they go into the future.
I am confident that I think they will end up
figuring a way to move forward with that permit. I
don't know the timing of that yet, but in my
conversations with them, I had suggested that they possibly look

(03:22):
at some type of public private partnership if they were
concerned about those costs moving forward. I know that they've
gotten committals from the state funding sources on those numbers
that you had just talked about earlier. I'm not sure
that they've expanded the majority of that money. In fact,
I think they're only into that money today around the
tune of about fifty million dollars, which is still a

(03:44):
lot of money if they had to pay that back.
But I do think that as we move forward, and
I think it will be sooner than later, they will
come up with a way to try to get that
thing moving forward. I know, in the interim there are
there other water sources, and there are you know, such
as pulling water out from underground aquifers, but a lot

(04:06):
of that and along with the DSL carries some pretty
big cost costs that is going to be placed on
the consumer. And I think I think that I think
that Carpus is also evaluating that, you know, is there
any other alternative water sources that could help blend with
those so so that they can stay competitive in the

(04:26):
water market with other areas throughout Texas and adjoining states.

Speaker 3 (04:31):
Commissioner, right, I want to start with you, thank you
for your intro in helping our listeners understand.

Speaker 2 (04:39):
You know what.

Speaker 3 (04:41):
I want to give them a little bit of what's
been happening behind the scenes. This has been a process
that's been going ongoing for a couple of years now,
and Corpus Christy finds itself in a precarious situation with
they need water, not just for the residents, but they
need water free industry. At some point, this starts really

(05:02):
hurting their economics as well if they don't find a solution.
When the previous elected body agreed to push through the desalinization,
they might not have done their full due diligence in
pushing through a vote that would not allow potential new
elected officials to come in and challenge it. And they didn't.

(05:24):
And so this is exactly what's happened. And now that
grants have been issued, money has been used. And again
I don't think it's any one person's fault. I think
no one could really see that this would happen. But
we're here now, and you know, the initiation for the
desalization planning and the city council voting in it down. Now,

(05:47):
how does it leave Corpus Christy in the terms of
the money they borrowed and the obligation they face. And
I want to address that first, because I think it's
important that we understand the situation they'reina.

Speaker 4 (05:58):
Kim, I'll give you the best way that I understand it, don't.
I don't know that I have all the facts on that,
but from what I understand, Karpus received a low interest
loan committed for like two hundred and twenty two million dollars,
and again I don't know if that's a real accurate number.
I know it was north of two hundred million. I

(06:19):
think currently they have spent somewhere in the neighborhood of
fifty million of that commitment, and they still have the
balance sitting in a trust to move forward with their
desut I think it's important that people around the community,
especially in Corpus Christie, understand that water is very very important,
you know, not only for survival, but I think people

(06:41):
need to understand that water also feeds industry. Industry feeds jobs,
Jobs feed our economy. Without that industry, you don't really
have a community that has the ability to survive. Without
that water, you don't have a community that has the
ability to survive. So I think you look back at
the history of the desail on what happened years ago,

(07:04):
whenever they started looking at this, they received some estimates
that said that they felt like that plant was going
to cost them just a little north of two hundred
million dollars. And then course, over time prices have changed.
In fact that you know, prices have gone way up.
So their next estimate was about seven hundred and seventy
five million dollars, and then just in a couple of

(07:24):
months they changed that price to where they're estimating it
now at one point two billion. So I think I
think when you saw what council stance was Corpus Christie's council,
I can see where they feel like there's some confusion there,
and I think I think what they did in this
last thing was said, look, we we just don't have
enough surety on moving forward, which I see that side,

(07:49):
But what I'm not seeing is the recognition of the
leaders in Corpus that they are in emergency conditions today
and that they have to come up with some water
sources that are not only a source that we can
rely on, but they're going to have to stay competitive

(08:09):
in the water market in order to keep industry and
people moving into the to our community to continue the growth.
I mean, Corpus is poised for huge growth today. We've
seen the expansion of the new bridge which allows bigger
ships to come in to move more cargo. We've seen
the expansion of our of our canal that brings those
ships in off the gulf to be deepened to handle

(08:31):
bigger ships. I mean, we're we're poised to be and
continue to be the leader of exporting energy that we
generate here in Texas. So yeah, you're right, water for
Corpus Christie is highly important. I think I think you
had inquired or just asked about, you know, what should
the next steps be. I think I think that they

(08:52):
need to continue. I think they need to find a
resolution to put in that desal operation, whether that's through
a public private partnership, which I think would be the
fastest way of moving that thing forward and seeing it
into a reality in my own opinion. And then I
think they need to continue to look at other sources
that can be a source of water that could dilute

(09:13):
what these escalated costs might be in the desal efforts
are in water well for things that they're doing today,
which is going to be price increases. And the reason
I say that I think is important for our community
to stay competitive in the order market, just to continue

(09:33):
the growth that we've been experiencing.

Speaker 3 (09:35):
Commissioner, right, let's take a quick break. When we return,
we're going to drill down into that just a few
segments in. I want to come back and talk about
the Moody Bond rating and what that means for them,
because right now they're facing a whole lot of challenges.
I want to continue on that before we start looking
at solutions. If you're listening to the Energy Mixed radio show,
we'll be right back.

Speaker 5 (09:55):
But Texas Energy Advocates Coalition presents the Energy Fair healths
Climic on Whennesday, October first, from nine am to one
pm at one o one East Main Street in Robstown, Texas.
The Energy Farehealth Clinic will be offering free well checks
and screenings for men, women, and children for Robstown and
nearby communities. The Energy Fare Health Clinic in Robstown, Texas, Wednesday,

(10:20):
October first, from nine am to one pm. Sponentered in
part by the Community.

Speaker 6 (10:25):
Action Corporation of South Texas, Texas A and m Agrolife Extension,
the Port of Corpus Christi, the City of Robstown, Texas,
Robstown Utilities, the Energy Network, Media Group, Sauce Digital Marketing,
oil Field Experts, and Shale Magazine. For more information, all
to one zero two four zero seventy one eighty eight

(10:49):
or email Amanda at shalemag dot com.

Speaker 7 (10:54):
Join the sky High team or Ladies who Brunch at
the River in Houston, Texas, Monday September ti twenty eight
from eleven am to two pm. Join us for frunch,
a live auction, and a special fashion show. That's Monday,
September twenty eighth from eleven am to two pm at
the Revere in Houston, Texas. To register, go to US
dot giverg dot com, slash Ladies hoop Brunch, US dot

(11:17):
hiverg dot com, slash Ladies hoop Brunch. That's us dot
giverg dot com slash Ladies hoop Brunch.

Speaker 1 (11:24):
Any business can benefit from advertising to the oil and
gas industry, but it's really important to partner with a
marketing company that has a proven track record with this
growing industry. Shale Oil and Gas Business Magazine is the
one stop shop that'll keep you in front of the
customers that you need to grow your business. So let's
start growing your business in Texas. Email us info at

(11:44):
shalemag dot com. Again, that's info at Shale s h
A L E mag mag dot com. Or you can
call us two ten two four oh seven one eight
eight Again, that's two ten two four oh seventy one
eighty eight.

Speaker 8 (12:01):
In the oil and gas industries, you don't just need
a worker's comp provider. You need a worker's comp provider
who understands your business. That's Texas Mutual Insurance Company. At
Texas Mutual, they've created the Texas Oil and Gas Association
Safety Group exclusively for businesses involved with exploration and production.
That means you'll have access to information and safety resources

(12:23):
that fit the way you work. But the advantages don't
stop there. As a Safety Group member, you'll receive a
premium discount on your worker's comp. Plus you can qualify
for double dividends. You heard that right. Members can earn
an additional dividend on top of the one you receive
as a policy holder. It's all part of Texas Mutual's
commitment to working as a partner with the businesses that

(12:44):
keep our state running. Texas Mutual and the Texas Oil
and Gas Association two great organizations that are even better together.
To see if you qualify to become a Safety Group member,
go to texasmutual dot com slash txoga.

Speaker 3 (13:02):
And we're a bouck here listening to the Energy Mixed
radio show. My yesterday is Chairman of the Texas Railroad Commission,
Jim Wright, Commissioner. Right, thank you for joining me today
to talk about some potential solutions at Corpus Christi might
be able to fit into. And hopefully this is what
this show is about, is talking about where they might
be able to go. But I still want to continue

(13:23):
to break down all of where we've been to help
our listeners understand, now, how do we get out of here?
When they voted down that they were not going to
permit desil to continue the permitting despite the fact that
we mentioned in the last segment all the millions of
dollars they were already put into the Corpus Christi coppers
to do this. They have the support of the Governor

(13:46):
of Texas. This is an important thing that we get
done to continue to build off of the port of
Corpus Christie. Since it's the number one energy export in
North America. They know these industries need water, so did
the residents. And it was a pretty important vote that
got shot down right after that, though the vote came
down against sinking the Deesel plant. The city received a

(14:07):
letter from its Moody bond and rating agency, which has
now accelerated its review of the Corpus Christy credit rating,
citing concerns specifically over water supply, planing, reserve levels, and
the utility rate decision. How critical in your opinion is
this moment for the city's financial reputation and could a

(14:30):
downgrade mean for what does it mean for taxpayers, infrastructure
investment and long term growth. I really want to explain
to our listeners where they've been unfortunately and now where
they can find themselves today, and then we're going to
go into some potential solutions a little bit later on
in the show. So what's happening with the Moody bond?
Potential mean?

Speaker 7 (14:50):
Now?

Speaker 4 (14:50):
The Moody bond is really when you base that on
common sense, what they've seen is now is there is
a possibility that Karpus will not have the supply to
continu its growth, which is what those bond ratings are
usually set on. What is you know, what does their
economy look like? What does their future growth? Also? Look like, well,
when you don't have water, that impedes that future growth tremendously.

(15:11):
So I know that you know that the Moody System,
the bond rating company, has got some serious concerns about
you know, what is Corpus going to do to have
guarantee and water supply? Which is why I think they
sent the letter to want to move up that audit
quicker than they had planned to do. And if they
if for some reason they lose some ratings on their bonds,

(15:35):
then that means that that money will become even more
expensive to get their hands on to develop these water sources.
So I mean, none of this stuff is good. I think.
I think Corpus has has got to recognize that they've
got to make some certainty in their in their decision process,
and they've got to do it quickly.

Speaker 3 (15:54):
Right, So if they do take a lower rating in
their bond, does this also So maybe someone is listening
and saying, well, this is only going to affect water
and we'll figure it out. It doesn't it's going to
affect any kind of money that they're borrowing, right.

Speaker 4 (16:07):
Infrastructure everything, yes, everything, So that's more expensive.

Speaker 3 (16:13):
Right, And of course we already know who is going
to have to you know, of course pay that would
be of course the citizens. So let me ask you
what Corpus Christy Bond already under a negative outlook and
the recent vote to halt the Inner Harbord diesel project,
which is raising red flags? Are they risking the future
potential for industrial expansion and regional water you know, security?

(16:36):
What steps do you think that the city leaders need
to take right now to restore And I know you
said they need to vote yes, but I don't necessarily
know if that's in line with some city council people
really feel this is a bad idea to move forward
with it, so there may not be a united let's vote.
Is there anything that the city can do, the city manager,
the city mayor the people who are in favor. Is

(16:57):
there anything that you see that they can do start
moving this forward without maybe actually taking a vote, or
what is it that they need to do do research?
White solutions.

Speaker 4 (17:08):
Yeah. Some of the meetings that I've had with Corpus
and the surrounding communities here, my suggestion to them has
always been, look, guys, I think all of you need
to get in one room with a whiteboard, and on
that white board. I think you guys need to start
identifying what potential water sources are, and when you identify those,
you need to list them in one, two, three, four,

(17:29):
number one being the most safe and most economical and
go down from there, so you know, in talking to them,
I think that they have other alternatives to go find
other water sources that will meet slot number one. Slot
number two may not be as economical, but it will
be a safe source in developing more groundwater access to

(17:51):
aquifers in conjunction with surrounding communities. I think that is
something they're going to have to put in their forecast
for their future. And then again, this is all overlaid
by what is your plan to do with a permit
that I know myself. I tried to help CARPUS and
did help Carpus a lot trying to obtain that permit,
and I think that is something that they need to

(18:12):
continue to develop what that looks like. I myself had
suggested that they look more at a public private partnership
so that that if something happens to their bond rating,
or if something happens from the state where they don't
have confidence in them and developing these water sources and
don't make the money that they need available. At least

(18:34):
they've got somebody that would have pockets to go out
and build the decil plant. But those are all things
that needed to really happen yesterday. So I've been encouraging
I keep keep encouraging them to please look at things
in that context as we move forward in the coming days.

Speaker 3 (18:52):
Well, I want to talk about Governor Abbott, but I'm
leary to say this, but I feel the need to
say it. You know, when you're elected TOFSE, you're elected
because of your integrity. People are believing and buying it
into what you're saying. Now, we have some new elected
officials that got on the city council and they're not

(19:12):
really for this. But I wonder, in some ways, what
are you for? Because if you're not realizing this may
not be the perfect vehicle, But what your legacy may
be is that you were elected and ever since you
were elected, wrong decisions really cost the city and the

(19:36):
surrounding counties a lot of businesses and produced a negative
economic development. And you know, trum and right, I don't
think that anybody who's recently elected and or who's voting
against this is really for that, But I don't think
they really have a solution. But it is them that
I believe that they really need.

Speaker 4 (19:54):
Yeah, that's what I've said earlier, Kim. The most important
thing right now is they need to develop a path quickly,
and they need to follow that path. And like I
said earlier, I think there are options with the desil
overlying that which would keep them to where they would
have the supply of water to meet their future needs
and their immediate needs. But they've also got to look

(20:14):
at that from an economic side of things. I cannot
say that, you know, they've done that correctly. I think
they have. They have created a lot of people with
the thoughts in their head of not having confidence in
their leadership. But I feel like, you know, I'm in
defense of that. I would have some hesitancy if my

(20:36):
price went from two hundred million to one point two
billion and didn't really understand why those dramatic increases even
with it with the cost of things that have gone up,
you know, I think that was the question, and that
question resulted in them not pursuing and moving forward with it.
I do think that they're sitting back today and they're
trying to figure out what is the best way to

(20:58):
pursue forward, because I I don't know that anybody in
their right mind would not think that Decel is not
going to have to be part of that solution for
people in Corpus Christi, Texas.

Speaker 3 (21:10):
Absolutely, So let's take a quick break. When we return,
I want you to explain to me what Governor Abbott's
position is weighing in on that. You're listening to the
Energy Mix radio show. We'll be right back, and we're back.
You're listening to the Energy Mix radio show. My guest
today is Chairman of the Texas Railroad Commission, Jim right Now.
Chairman right. So, Corpus Christy is in the first community

(21:34):
to face something like this. These are people who are
elected and they're trying to do the very best they can.
But they are certainly not water experts or engineers, and so,
as you mentioned earlier in the show, they have questions.
Things seem to be changing, and there's nothing wrong with that.
It's more of how do we get everybody up to
speed to start moving in the right direction. Meanwhile, our governor,

(21:58):
who is of course responsible for the stay eight and
may potentially be looking at we have the number one
energy export in North America and they need water? How
do we assist them? So we've heard from Governor Abbot,
he's weighed in on this issue. And so what do
you think, Governor Abbot? And what is the state and them?

(22:18):
What are they saying pertaining to the decisions around water
infrastructure of Corpus Christi. Are they weighing in it? I mean,
I know they are saying something. What are they weighing
in on? And as the Railroad Commission, do you kind
of think that it's in line with what Corpus Christi
is looking at as well?

Speaker 4 (22:35):
Let me start from the beginning there, and just so
I disclaim have a disclaimer here. I have not met
personally with the Governor's office or anyone in the Governor's
office all of the situation of Corpus Christi. I have
heard things about what's happened there, and I do think
that the governor, given what you just see happening today,

(22:55):
there is some lost confidence and Corpus having the ability
to identify water sources and plan on bringing them in
and what the timing of that's going to look like.
And in doing so, you know, there could be action
coming out of the governor's office. I'm not sure what
he has in authority exactly when it comes to water,

(23:17):
but I will give an example. There was a bill
created a couple of legislative sessions ago called House Bill forty,
where a lot of municipalities were saying, look, we don't
want horizontal drilling done underneath our city and that if
you look at the state of Texas, I would say
that probably a third of Texas is cities. So what

(23:39):
cities were trying to basically do was to get the
authority to either allow or disallow for us to continue
to develop our own gas in Texas, which we know
how important that is for our state. So House Bill
forty was mainly developed to say, look, cities do not
necessarily have the authority to stop that expansion of drilling

(24:00):
and collecting oil and gas, which is one of the
biggest things that our economy thrives on. There's a lot
more to House Bill forty, but I don't know that
you can take a paint brush and paint that House
Bill forty over water. I'm just I'm just not that
familiar with it. But I am sure that in some way,

(24:21):
somehow that the governor is going to continue to look
at the situation in Corpus Christi, because you hit the
nail on the head. Corpus Christi is the nation's largest
exporter of our oil and gas well, and I don't
I don't see that the governor is going to sit
there and watch things continue to go on like we've

(24:42):
seen here in the past few months. But I do
again have confidence that the leaders in Corpus Christi will
come up with a solution, hopefully hopefully in a timely solution,
and I think it will be based on the criteria
that I've strongly suggested to not only them, but other
communities that we you know, we stay cognizant of what

(25:04):
those sources are. How quickly can we get to them,
are they safe? And are they economic for our people
and for our industry.

Speaker 3 (25:12):
Well, you know, Commissioner right you mentioned thank you for
bringing up House Bill forty, But I also want to remember,
I also want to remind our listeners that not too
long ago, the state of Texas also stepped in for
conservativeship of failing school districts. And now we have legislation
that is also allows now school choice, which congratulations and
I'm very happy for that. But if we're looking at

(25:35):
this is you know, a poor that is the number one,
like you said, in energy export and crude and second
in L and G. And this is an important vital
area for oil and gas as you mentioned house built
forty and then as seeing that the state has stepped
in and passed pertaining to schools, it might make sense
that given enough time of no decision that is a

(25:59):
decision right.

Speaker 4 (26:01):
No, it certainly could happen, and I would see it
happening if if our leaders in Corpus Christi and the
communities here do not you know, develop a pretty strong
plan and do it quickly, and you know, pursue in
developing those plans, which includes something with that desail permit.

(26:22):
I I again, I think the DSL is more of
a roof that's over the top of these other sources. Uh.
We we have to we have to plan our future
not based on rainfall. We have to plan our future
in another way. As we've seen everything pretty well, much
less than the ninety eighth meridian today is in severe

(26:42):
drop conditions. So you know, it's not just Corpus Christi.
There are a lot of communities that are in need
of water. And I think I think it's time that,
you know, a lot of us have got to start
thinking outside the box of where this water is going
to come.

Speaker 3 (26:56):
From, and and and money. While it is important and everything,
I want to give you an opportunity to discuss this.
We're going to return from breaking now. We're going to
talk about chairman rights, potential solutions. But one of them
might be this amount of money you're spending now may
not even seem like anything in the future if you
get your water going now. But let's take a quick break.
You're listening to the Energy Wix radio show and we'll

(27:18):
return it and we're back. You're listening to the Energy
Mix radio show. My guest today is Chairman of the
Texas Railroad Commission GYM Right. Commissioner right, you pretty much
are the expert as far as the regulatory body. There
are a few that also work honestly with you, guys, TCEQ,

(27:40):
the General Land Office. But the amount of money but
the State of Texas receives from oil and gas expiration
is in the billions. It actually is solely responsible for
budgeting the State of Texas. Every legislative session, we've hit
record highs in producing energy and it has been to
the benefit of the citizens of Texas and how that

(28:02):
money has been used, and it has helped everyone from schools,
elderly taxes, you name it. When when the state is
run and low, that money is a nice cushion to have.
And so energy is vital to the state of Texas,
and our Texas legislators get it. But your body alone,
your agency as chairman, is the single most important agency

(28:26):
that regulates the oil and gas industry. So if anybody knows,
you know how important Corpus Christie is and how are
we going to deal with this, it'd probably be you
guys along the course working with other agencies. So I
want to start with giving you an opportunity to tell
us a little bit about So now Corpus Christy has
founded themselves in a pickle that, by the way, any

(28:47):
city could have found themselves in. Right. These are elected
officials who may be doctor, a lawyer. They're not experts
in water, They're not water engineers or whatever you would
call them.

Speaker 5 (28:58):
How are they.

Speaker 3 (28:59):
Supposed to truly understand and be an expert? When they've hired,
they thought they did their due diligence, and now they
find themselves in a very strange situation. So let's give
us some solutions. I know, because you are from CORPUS,
you are working closely with the elected officials, the mayor
and them. Everybody wants to do what's in the best
interests of CORPUS. So what are some of your solutions

(29:21):
that you potentially find to be attractive that they could
maybe immediately jump into and start working towards to give
the State of Texas, the governor and these energy companies
out there the belief that we are going to find
a solution.

Speaker 4 (29:34):
What are some of the things, Ike Kim, It's important
for everybody to understand when you talked about earlier the
all in gas business and what that means for Texas.
And I'll put this really simply so that people do
understand all in gas with the State of Texas is
thirty eight percent of our GDP. I mean that is
that's pretty huge. That goes away.

Speaker 3 (29:51):
Thirty eight percent of our GDP goes away. We're in
a world of hurts.

Speaker 4 (29:54):
We're in a world of hurt You're exactly right. And
another way of looking at all in gas and what
that's done for tech tis in context is we're the
eighth largest economy tech in the world, Texas is alone.
I mean that's saying a lot, and it's falling gas
that has given us the ability to say that.

Speaker 3 (30:10):
I think the next one to you is that I
just heard this in the luncheon. Is France free?

Speaker 4 (30:14):
That's correct, And if our trajectory stays the way it is,
we should be surpassing France. So I mean we may
be moving into that seventh slot. I know the governor
likes to say that a lot, and I'm believe in
if we continue the trajectory that we've been on, Texas
is a very very blessed state to have all the
natural resources that we have, it's a very very good

(30:36):
state to do business in. We have people moving to
this state and record numbers over twelve hundred people a day.
We have industry moving to the state every day. It's
important that not just the state leaders, but the local
leaders recognize the infrastructure that we've got to build. We've
got to keep up with the continue that type of growth. So,
you know, as I said earlier, I was talking to

(30:58):
the communities about, Hey, let's write on a whiteboard, you know,
what are some sources of water. You know, let's start
with you know what is a safe source and what's
the most economical. Well, I know where there's a lot
of water. In fact, I know where there is thirty
million barrels a day that's being reinjected under the surface
into formations. And I think people people need to understand

(31:20):
what produced We refer to that water as produced water.
It's water that comes up alongside of our crude oil
and natural gas, usually high in salinity, higher than what
you would normally find in your oceans. But I think
people need to understand why that's becoming an issue in
Texas As. I think everyone has seen we we've been

(31:40):
experiencing some seismicity in our producing regions in Texas.

Speaker 3 (31:45):
Yeah, let me break this down real quick. When you
say salinity, this is salt. It's salty water, brackish water
that's coming back reproduced, Okay, And then you're also saying seismicity,
which is we are having to write now because we
cannot find a place with this salty water that's coming
up for exploration. We can't find a place for it.

Speaker 4 (32:05):
I think it's important that people understand when you say
we can't find a place, what's happening right now?

Speaker 8 (32:10):
We can't.

Speaker 4 (32:12):
What's happened in the oil and gas business. And I
think it's important that you know Texas back in the
seventies and eighties, we were a we were not a
really a producing state. We were not producing that much
oil because we felt like we were running out of oil.
It was in two thousand, around two thousand and eight
to twenty ten when we discovered horizontal drilling, which allowed

(32:33):
us to go into really tight formations and start fracking
to develop other oil and gas sources, which has really
broken the lid off of what we're doing in Texas today.
That's kind of new if you look at that, that's
about fifteen years old. I don't think that anybody contemplated
that we could not return the water from where it

(32:55):
came that's produced alongside that oil and gas. But what's
happening to is we're having to put it in formations
from where it didn't come. Deeper formations put more pressure
on fault lines, which cause the seismicity shallower. For emotions
that are above that producing zone that we can't reinject
that water back into causes over pressurization. Over pressurization can

(33:16):
lead to potential contamination of our groundwater sources. So both
of those things are or hard stops for oil and
gas industry if they become serious issues. And that's I
think it's important to know that we have got to
find other areas of use for that produced water. Well.
To me, it's common sense to know that the dry

(33:39):
conditions that we're experiencing Texas west of the ninety eighth
and having that magnitude of water, and given the way
that technology has advanced today in treating that water, even
to levels where there's nothing in it, it's basically free
of minerals up which would not be necessarily good, but
the treatment today is unbelievable. Technology is gone a long way.

(34:00):
The economics work for that. I think whenever I talk
to the communities and I said, let's list that on
a whiteboard. To me, what where would I get the
cheapest water source, the most safest water source, and a
water source that would be there from now on? Produced
water is my answer to that. How do I get
water to places that where I need it. We have

(34:21):
a lot of rivers in the state, a lot of rivers,
and that water can carry that water can be carried
through those rivers just like rain. Water is carried through
those rivers every day. So I think I think that
is one of the things that I've encouraged people, especially
in Corpus Christy, to really start paying attention to, because
that cheap water source could help dilute these more expensive

(34:42):
water sources such as desau or or wells that are
drilled into oktfas that are going to need some form
of treatment in either reverse osmosis or desalination itself. We
have we have to look at that as a region
here along the coastal bend because places like qu Ston
and Louisiana, God has blessed them, they get rain all

(35:03):
the time, they don't have water issues like we have here.
And for us to remain competitive, for us to keep
people moving to our community, those are the things that
our leaders have got to start thinking about.

Speaker 3 (35:16):
Well, Jim, let's take a quick break. When we return,
I want to get back on Okay, so we have
this potential use of produced water. I'd like you to
talk a little bit about private partnerships as well as
potential solution. You're listening to the Energy Mix radio show.

Speaker 5 (35:31):
We'll be right back.

Speaker 1 (35:33):
Shale Oil and Gas Business magazine provides services like print
advertising and digital marketing. Our digital advertising services include website, email, radio, video,
and social media. Shale also provides specialized web services from
website management to search engine optimization and social media management.
Visit our website shalemag dot com once again that's Shale

(35:55):
s h l emagmag dot com to learn more. Shale
is your one stop shop for growing your business. Pick
up the phone today and call two ten two four
ohs seven one eight eight again two ten, two four
ohs seventy one eighty eight.

Speaker 3 (36:12):
And we're back. You're listening to the Energy Mix Rido Show.
My guest today is Chairman of the Texas Railroad Commission,
Jim Wright, Sir. Before the break, you were talking to
us a little bit about what is an abundance in
the state of Texas which is produced water, and as
the Railroad Commission, you guys are finding places that you
have to put it back into the ground, which is

(36:32):
causing additional you know, problems as anything does, and the
symptoms of what you're doing. And yet there's other parts
of the state of Texas that desperately need water that
you're saying could potentially use this water as opposed to
us putting it back into the ground, and you suggested
it potentially for Corpus Christy. But you've also made reference
to that you believe very strongly in private and public partnerships.

(36:55):
Can you go into great detail on that in the
last segment of our show?

Speaker 4 (36:59):
Well, yeah, I do. I do believe in public private
partnerships because I think that's a way that we make
sure that we're consistent in what people are paying for
the product. I've seen. I've seen a lot of governments
that have tried to go out and get into businesses.
You know, my experience has been more in the landfill side,
and most of the time they just they're just not

(37:21):
really great at operating those businesses, and usually people end
up paying more when they're municipally owned and operated, where
I've seen public private partnerships be way more competitive in
that arena. And I think I think all communities have
got to start looking at you know, do I have
the abundance of the things that I need to continue
to grow, Do I have the infrastructure And a lot

(37:42):
of times, you know, there's only so much money that
these communities can qualify for. The alternative of that is
public private partnerships. And I think that Corpus Christy is
a prime example of where they really need to take
a hard look at that, especially when it comes to
this decail plant. I think if you're looking for that

(38:03):
plant to come online, the quickest possible way that it
could it would be through some sort of public private
partnership in where the city didn't have to go get
bonds or get loans from the state in order to
operate that them themselves, that that plant. I think that
the private part of that. Certainly there are people that

(38:27):
I'm aware of that has the funds to build, design
and operate a facility like that. And you know, to me,
I would much rather want to know what my price
of water is that I'm going to be paying, not
just now but into the future, and what escalations are
going to be put on that price as we move
through the future. That's the certainty I think that the

(38:47):
city council is searching for. I think private private partnership
answers that for them, And I think it's something that
you know, I've said time and time again to them
and the surrounding community, please at least at least consider
that option.

Speaker 3 (39:03):
Ow Commissioner, right, let me ask you if you could
get this up, Kim, you know, way is your magic
little want and you've got it. Who who are the
maybe not so much the companies, but give us some
ident ideas of what could the city of Corpus use
immediately to get this going in a way that would

(39:23):
reassure the State of Texas and its leadership and satisfy
of course the oil and gas folks out there that
we're going to have water coming on board. And they're
not people who do not have experience in water. They
actually do. They have the money. So how would Corpus
get this off the ground and what ways should they
be moving towards? With your expertise of how fast can

(39:45):
they remedy this?

Speaker 4 (39:47):
I think I think if they look at in the
virtue of public private partnership on both sides, not just
with their DCEL permit that they have today, but also
in utilizing produced water as part of their water sources,
I think I think a public private partnership is the
quickest way for them to do that, and I think
it's the most economical way for them to obtain that goal.
You know, in the in the produced water side, Corpus

(40:10):
ads benefits to a private sector and that they could,
they could go out and get some of the money
that's being made available to develop other water sources in Texas,
which I'm very proud of legislation this last legislative session.
They created a bill known as Senate Bill seven, and
that bill essentially is allowing a billion dollars a year,

(40:31):
I believe, for the next twenty years to be utilized
in Texas to develop water sources. That's supposed to be
voted on by the voters in November, and hopefully it
will be built, be passed, and we have access to
that money as a move. I don't see an alternative
for that when it comes to anybody that's living west
of the ninety eighth Barridian.

Speaker 3 (40:53):
Very good, Commissioner, right, thank you for joining me for
today's show. And is there anywhere that our listeners can
go get information on what's happening besides googling and looking
at all the different media articles and stuff. But I'm
just wondering where someone would go to kind of put
their opinion on that they are moving towards us start

(41:13):
looking at this private public partnership as a solution for
our water needs and corpus. Is there a collaboration effort
to coalition anyone that you know is picking up there.

Speaker 4 (41:26):
There is a lot of there are a lot of
associations that now are talking about water, developing water sources,
all kinds of different developing water sources. That's a Google search.
I would very much encourage people, if they want to
get more educated on that, to do that. And then
I would also say that, you know, there's a lot
of places around the world that are de selling so
you know, higher salt water to use as a water source,

(41:49):
and there are a lot of companies that do that
throughout the world. I can't encourage people enough to really
search and kind of figure out what all that means
and and even and try to figure out what is
the cost when you're looking at a public private partnership.
I think I think that would help educate people a lot.
And I think that's some of the issues that the

(42:10):
Council and Corpus CHRISTI have faced, is that, you know,
I don't think a good job of educating people of
what all this really means. Uh that they've they've done
a really great job with that.

Speaker 3 (42:20):
Absolutely well, Chairman, right, thank you again for joining us
helping us understand what's happening in Corpus Christy. And I'm
glad that you're a part of the discussions to help
the leadership understand energy requires water, data centers, all of
this stuff will lack in Corpus Christy if they don't
address their water issues.

Speaker 4 (42:40):
Ecture it's important for anything, and again people need to
recognize Kim and I think it's very important. But community
only survives by its jobs in its industry. Without that,
you don't have a community, So, you know, I think
I think it's important that people are educated in that
process too. Of course, the way we approach that and
vit them and developed that needs to be done in

(43:01):
a very safe and economical way. And I think that
those that are out there, we've just got to find them.

Speaker 3 (43:08):
As we wrap up today's show, I wanted to take
a moment to reflect the conversation we had with Chairman.
Right though he had to leave and step away before
the end, his insights left a lasting impression, especially when
it comes to the future of water and Corpus Christy.
We all know our challenges. Our region has faced drafts,
rising demand, and aging infrastructure. The question isn't whether we

(43:30):
need solutions, it's how bold we're willing to be in
pursuing them, and Chairman Right made it clear that the
path forward lies in private public partnership, and not just
as a buzzword, but as a real strategy that brings innovation,
efficiency and investment into our water systems. It's about leveraging
the strength of both sectors to build something sustainable, not

(43:52):
just for today, but for generations to come. He also
pointed us towards Senate Bill seven, a major piece of
legislation that could be a game changer folks. If passed,
it would unlock billions in funding for water infrastructure across
Texas and for Corpus that means the possibility of a
new desalinization project, upgrading pipelines, and a smarter regional collaboration.

(44:15):
It's not just about fixing what's broken, it's about reimagining
what's possible.

Speaker 4 (44:19):
So as I close out.

Speaker 3 (44:21):
This show, I wanted to leave you with this. Water
is life and securing it isn't just a technical challenge,
it's a moral one. We owe it to our communities,
our industry, and our environment to think big, act bowling,
and stay engaged the future of Corpus CHRISTI Water isn't
written yet, but with leadership like Chairman Right, the elected

(44:41):
officials in Corpus Christie and the mayor, it promises that
Senate Bill seven will have a chance to write a
better chapter. That's my thoughts, what are yours?

Speaker 1 (44:52):
The Energy Mix Radio Show is where we explore topics
that affect us all in the oil and gas industry.
Every week, our host will interview the movers and show
acres in this fast paced industry. You'll hear from industry experts,
collected officials, and many more on the Energy Mix Radio Show.