Oilfield Wastewater Finds a Second Life

Aquafortus and Veolia push produced water reuse as rules tighten, turning oilfield wastewater into industrial supply

16 Feb 2026

The global water business is at a turning point. And in an unlikely twist, wastewater from oil and gas fields is stepping into the spotlight.

For years, produced water was treated as a problem to manage and bury. It was hauled off, injected underground, or left to evaporate. Expensive. Regulated. Out of sight.

Now it is being reconsidered as something far more useful.

Across North America and the Middle East, companies are racing to treat and reuse this byproduct, turning what was once waste into a working asset. The shift is driven by tightening environmental rules, rising water stress, and growing pressure on operators to prove they can do more with less.

One of the clearest signals comes from Aquafortus, a water technology group that has moved from pilot projects to commercial rollout. After treating 16 types of high-salinity wastewater, the company is expanding into oil and gas, mining, and other water-heavy industries. In these sectors, reuse is no longer a nice addition. It is becoming essential.

The regulatory backdrop is changing fast. Disposal options are narrowing as scrutiny grows. Policymakers are promoting reuse frameworks, including the US EPA’s Water Reuse Action Plan. In dry regions, authorities are encouraging alternatives to traditional injection and evaporation.

The business case is evolving alongside the policy push. Treated produced water can supplement industrial supply. Valuable minerals can sometimes be recovered. And companies that reuse water reduce both waste volumes and long-term risk.

Aquafortus recently named Hoshang Subawalla as chief executive, signaling its intent to scale quickly. His background with global players such as Veolia suggests a focus on operational delivery, not just technical promise.

Veolia and other major water firms are also expanding their produced water services, betting that demand for advanced treatment systems will keep climbing as infrastructure investment and sustainability goals gather pace.

There are hurdles. Commercial systems require serious capital, and performance must hold up across varied field conditions. Economics differ by region, regulation, and local demand for treated water.

Still, the direction is clear. Produced water is being recast from liability to leverage. In a world where water security is tightening, that reframing may prove to be one of the industry’s most consequential shifts.