AI and Scale Reshape the Permian’s Produced-Water Race

AI platforms and consolidation are turning produced-water systems into strategic assets that shape how fast the Permian can grow

16 Jan 2026

The next competitive battle in the Permian Basin is no longer centred only on drilling speed. As activity rises, the ability to move, treat and store produced water efficiently is emerging as a critical factor in whether operators can scale without disruption.

Produced water, the wastewater that flows back to the surface alongside oil and gas, has long been treated as a logistical necessity. But tighter margins, denser development and infrastructure limits are pushing companies to manage it with greater precision. That shift is accelerating interest in digital tools designed specifically for water operations.

One example is Intelligent Core’s Core Flow platform, which applies artificial intelligence to produced-water systems. The software integrates with existing field monitoring and control equipment, using predictive analytics and automated logic to support decisions on how water is routed, treated or stored as operating conditions change.

The company describes the platform as a decision-support layer rather than a replacement for human oversight. By analysing real-time data alongside expected flow conditions, it aims to shorten response times when capacity constraints, outages or sudden volume changes occur. In a basin where water handling often sets the pace for drilling and completions, faster decisions can reduce delays and operating costs.

Technology alone, however, is not reshaping the market. Scale and consolidation are proving equally influential. Western Midstream recently completed its acquisition of Aris Water Solutions, creating a larger, more integrated produced-water network in the Permian. The combined system expands connectivity and increases the ability to serve operators across one of North America’s most active oil regions.

Together, automation and consolidation point to a broader industry shift. Produced-water logistics is increasingly treated as strategic infrastructure rather than a secondary service. Its performance now has direct implications for capital planning, operational efficiency and long-term competitiveness.

Executives involved in the rollout of platforms such as Core Flow say the emphasis is on linking legacy assets with modern automation while keeping operators in control. That approach reflects a cautious path to digital adoption, particularly for companies seeking measurable gains without adding operational risk.

For producers and midstream groups alike, the direction is clear. The produced-water market in the Permian is moving towards a model defined by speed, scale and data-driven control, with water management becoming a constraint for some and a competitive advantage for others.