In the dry and arid American Southwest, the state of New Mexico faces a big environmental challenge, which is growing water scarcity worsened by climate change. To address this issue, Governor Michelle Lujan Grisham has put forward a bold plan to reuse treated wastewater from the oil and gas industry. This idea, announced at the 2023 United Nations Climate Change Conference, aims to save freshwater by using the treated water in green energy projects like solar and wind farms. While the plan offers hope for New Mexico’s water crisis, there are serious concerns about its safety for public health and the environment, which have stalled its progress. In this blog, we will explore the ongoing debate over reusing oil-industry wastewater in New Mexico, looking at the possible benefits, the environmental risks, and the opinions of those involved in this important discussion.

The Strategic Water Supply Proposal: Hope or Hazard?

At the 2023 U.N. Climate Change Conference, Governor Lujan Grisham announced a $500 million plan to harness oilfield-produced water, or “produced water,” for use in green industries such as solar and wind energy and electric vehicle manufacturing. The initiative dubbed the “Strategic Water Supply,” was designed to safeguard New Mexico’s freshwater reserves while advancing the state’s climate resilience. By treating brackish and oilfield water and repurposing it for industrial use, the state aimed to reduce its reliance on freshwater resources in a region that is becoming increasingly arid.

At first glance, the proposal appeared to be a forward-thinking solution to the state’s water woes, especially in light of the significant volumes of wastewater generated by the oil and gas industry. The Permian Basin, which spans southeastern New Mexico and West Texas, is the most productive oilfield in the U.S., producing over 15 million barrels of wastewater daily. Much of this water is currently injected back underground, but advocates of the Strategic Water Supply argue that reusing it for industrial purposes could help offset the region’s freshwater demands, particularly in the burgeoning green energy sector.

However, the devil is in the details. Produced water is a complex mixture of contaminants, including naturally occurring salts, metals, and chemicals added during the fracking process. While the state has not proposed reusing this water for drinking or agriculture, the question of whether treated produced water can be safely repurposed for industrial uses has raised serious public health and environmental concerns.

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The Public Backlash: “A False Solution”

When the New Mexico Water Quality Control Commission held a public hearing on the proposal, it became clear that many New Mexicans were not convinced. Citizens, environmental groups, and Indigenous activists voiced their opposition, citing a lack of reliable data on the potential hazards of produced water. Many feared that treated wastewater could still pose risks to surface and groundwater, given the wide range of chemicals present in the water.

Katie Zemlick, a member of the Water Quality Control Commission, summed up a common sentiment: “Why would we want to move forward with applications that could potentially interact with ground or surface water, given the lack of reliable data on the chemicals found in industrially produced water?”

Indigenous activists, including those from the Navajo Nation, whose ancestral lands overlap with oil-producing regions like the San Juan Basin, were particularly vocal in their opposition. Many viewed the proposal as a “false solution,” benefiting the oil and gas industry while ignoring the risks to water sources sacred to Indigenous communities.

Navajo lands include the Navajo Nation as well as off-reservation lands held in trust for the tribe.

Image Sources: New Mexico Bureau of Geology and Mineral Resources, U.S. Census Bureau

Visual: Anson Stevens-Bollen/Santa Fe Reporter

Critics also pointed to a long history of advocacy for more sustainable water projects that focus on conserving freshwater, fixing ageing infrastructure, and addressing tribal water needs—issues they argue have long been overlooked in favour of extractive industries.

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Can Produced Water Be Treated Safely?

Despite the pushback, proponents of the plan—including scientists and industry leaders—believe that with proper treatment, produced water can be reused safely. Mike Hightower, program director of the New Mexico Produced Water Research Consortium, testified that existing data overwhelmingly supports the safe treatment and reuse of produced water. According to Hightower, technologies like filtration, reverse osmosis, and ultraviolet disinfection have proven effective at removing many of the harmful contaminants found in the water.

Image Source: Jiag et al, Water 2021 Visual: Anson Stevens-Bollen/Santa Fe Reporter

However, public health experts remain sceptical. Produced water can contain a wide variety of harmful substances, including known carcinogens like formaldehyde, volatile organic compounds (VOCs) such as benzene, and even radioactive materials like uranium and radium. The chemical composition of produced water varies depending on the geological formation it comes from, making it difficult to establish a one-size-fits-all treatment solution.

Studies have shown that only 14 percent of the chemicals found in U.S. produced water have established toxicity values, which are necessary for proper risk assessment. Furthermore, many of the chemicals used in fracking are proprietary, meaning that oil and gas companies are not required to disclose their exact composition. This lack of transparency only deepens concerns about the potential dangers of reusing produced water.

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Environmental and Health Concerns: The Unknowns Linger

One of the key challenges in reusing oil-industry wastewater is the complexity of produced water. It’s not just about individual chemicals but also their interactions and potential cumulative effects on ecosystems and human health. As Pei Xu, associate director for research and technology at the New Mexico Produced Water Research Consortium, points out, the combined exposure to multiple chemicals could have a “synergistic effect” that isn’t revealed through the analysis of individual substances.

Toxicity testing on plants and animals is ongoing, but many environmental advocates believe that the current regulatory framework is insufficient to safeguard public health. Ted Schettler, science director at the Science and Environmental Health Network, has warned that without more rigorous testing and federal oversight, hazardous chemicals could make their way into the environment through the reuse of treated water. The treatment process itself is highly energy-intensive and costly, which could deter widespread adoption of the technology. Furthermore, the treatment process produces waste that must also be dealt with, raising concerns about hazardous byproducts.

Schettler and others argue that the current regulatory landscape—where Western states like New Mexico are left to manage produced water under the federal Clean Water Act—does not go far enough to protect against the unknown risks posed by this complex and potentially toxic wastewater.

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The Stakes for New Mexico and Beyond

New Mexico’s situation is not unique. Other oil-producing Western states, including Texas, Wyoming, and California, are also dealing with how to manage the increasing volumes of produced water generated by fracking operations. In some regions, produced water has already been repurposed for uses like irrigation and livestock watering, though these applications remain highly controversial.

In Texas, pilot projects are underway to use produced water for cotton irrigation, while California has permitted its use in irrigating crops in the Central Valley. These states, along with Colorado and Pennsylvania, have also formed consortiums to study treatment technologies and potential uses for produced water beyond oilfield operations.

Yet, as more states consider reusing produced water, the question remains: How much risk are we willing to accept in exchange for water security? Environmental health scientist Seth Shonkoff frames the debate in terms of balancing two competing risks—on the one hand, the need to become resilient in the face of worsening drought conditions, and on the other, the risks posed by reusing water that may contain harmful chemicals.

As New Mexico moves forward with ongoing research on reusing oil-industry wastewater and legislative efforts, the debate over produced water is far from over. Governor Lujan Grisham has vowed to revisit the issue in the 2025 legislative session, and the New Mexico Water Quality Control Commission will continue deliberating on new rules for produced water discharge later this year.

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Conclusion: A Cautious Path Forward

The conversation around reusing oil-industry wastewater in New Mexico highlights the difficult choices facing arid regions around the world. While produced water presents a potential resource in a time of growing water scarcity, it also carries significant environmental and public health risks that must be carefully weighed.

As scientists continue their research, it’s clear that any path forward will require a robust regulatory framework, improved transparency from the oil and gas industry, and a more comprehensive understanding of the risks involved. For now, New Mexico remains at the centre of this critical debate—one that will likely shape the future of water management in the West for years to come.

This story was originally co-published by Undark Magazine and the Santa Fe Reporter.