Oil & Gas

Produced Water Treatment & Disposal

Recording the cost of treating and disposing of water produced alongside oil and gas.

Account NameTypeDebit ($)Credit ($)
Produced Water Disposal Expense (LOE)Expense (+)180,000.00-
Cash / Water Disposal Service ProviderAsset (-)-180,000.00

💡 Accountant's Note

Produced water volumes often exceed oil production volumes in mature fields. Treatment and disposal costs are a significant operating expense (Lease Operating Expense) that increases as a field matures.

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