Two Firms, One Bold Oilfield Water Plan

WaterTectonics and Clearvale form WT Oil & Gas to expand recycling capacity across the Permian

2 Oct 2025

A new partnership is trying to rewrite the story of oilfield water. WaterTectonics and Clearvale Capital have created WT Oil & Gas, a venture devoted to recycling the vast volumes of salty produced water that rise with every barrel of crude. Announced October 1, 2025, the move signals a push to turn a costly liability into something with real value.

Produced water has long tested the patience and budgets of operators. Several barrels often surface for every barrel of oil, and most of it has traditionally been shipped off for disposal. With environmental scrutiny rising and state rules tightening, producers are looking for options that are practical at scale. WT Oil & Gas hopes to fill that gap with modular systems that can be dropped into the field and quickly put to work, especially in the busy Permian and Delaware Basins.

Jason Mothersbaugh, president of the new venture, argues that recycling is no longer a fringe idea. “Smarter, more sustainable water recycling is the future of oil and gas operations, and WT Oil & Gas is positioned to lead that future,” he said. He pointed to WaterTectonics’ engineering background and Clearvale’s financial footing as the blend needed to offer immediate value for operators.

Clearvale CEO Kirt Montague echoed that view. The right mix of capital and technology, he said, can shift the economics of field operations and help companies tackle one of their most persistent pain points: water.

The economic case is growing stronger. Deep well disposal is drawing closer review as regulators aim to manage seismic risks, which has pushed more operators to test on site recycling. Bringing treatment capacity closer to production aims to cut trucking traffic, reduce reliance on freshwater and lower the lifetime cost of a well while supporting environmental targets. The venture notes that reuse does not need to be perfect to be worthwhile. Even one slice of produced water routed back into drilling or hydraulic fracturing can reduce stress on local supplies.

Plenty of challenges remain. Water quality varies from pad to pad, and round the clock operations at scale are never simple. Still, the trend line is hard to ignore. If WT Oil & Gas delivers on its plan, produced water could evolve from nuisance to resource and help shape a more resilient future for the Permian.