Kurt Hallead, Treasurer and Vice President and Investor Relations. In the context of our day today, can we roll the script here, please? Thank you. Keep going. Technical difficulties. Here we go. It's a privilege to host you. Keep going, please. Thank you. It's a privilege to host you today in this historic venue. I couldn't be more excited to help set the stage for OneTETRA 2030, the next phase in TETRA's transformation. We prepared a compelling agenda featuring presentations from members of our executive leadership team, each bringing unique insights. These sessions will conclude at 11:30 A.M., followed by a 30-minute Q&A, and then lunch. Midway through the morning, we'll take a short break so you can stretch your legs, hydrate, caffeinate, and mingle with the management and our board members, all of which are very eager to share our transformation story with you.
Some of you are long-term shareholders. Some of you may be inspired to invest after what you hear today, while others may wait for us to reach certain milestones. Whatever your positioning may be, our goal is simple. We want to leave you with a clear understanding of where TETRA stands today, where we're headed over the next five years, and how we plan to leverage our core competencies, operational excellence, and financial strength to deliver long-term value. Before we begin, I'd like to call your attention to our safe harbor statement. Some of the remarks we make today may be forward-looking and are subject to risks and uncertainties, as outlined in our SEC filings. Actual results may differ materially from those expressed or implied. For those that are joining us remotely, all of our Investor Day materials are currently available on our Investor Relations website for your reference.
May I ask everybody please to silence your phones? With that, let's get started. Leading the charge in this transformation is Brady Murphy, our President and CEO. Brady, the floor is yours.
Thank you, Kurt, and good morning, everyone. We have a really exciting story to tell today. As Kurt mentioned, we call it TETRA 2030, and we again appreciate the time for you to join us so that we can share it with you. As Kurt mentioned, I'm Brady Murphy, President and CEO. Our presentations today will be really focused on some recent financial performance, but more importantly, the transformational journey that we are on and are undertaking. Let me get us to the right place here. This is our agenda for today. As Kurt kicked things off, I'm going to give us a 15-minute overview to get us started today. Roy McNiven will cover our Energy Services. Matt Sanderson will discuss our water treatment and desalination.
We'll have a short break, followed by Tim Muller who will cover our specialty chemicals and minerals, and then Elijio will wrap things up with our financial summary. Our last Investor Day was over seven years ago, before I had the opportunity to serve as CEO. The journey we're on really began in early 2021 when we announced the divestiture of our general partnership in CSI Compresco and our strategy to refocus the company on what we do exceptionally well, which is fluid chemistry. You'll hear quite a bit about that today. We identified that by leveraging our core strengths, we could develop new innovative businesses supporting new energy and critical water solutions that could create significant value. The OneTETRA represents the core philosophy of leveraging our strengths and creating strong synergies between our businesses. Today, you'll hear about our progress and what it means for our future.
We're starting our presentation today with the end in mind, which is sharing the main takeaway, which is the progression from what we look like today to what we plan to be in 2030. Those of you familiar with the company's history know that we're recognized as an oilfield services company. That's because 71% of our revenue today comes from traditional oilfield services with two external reporting segments: completion fluids and products, and water management and flowback. An additional 23% of our revenue is from our industrial chemicals business, primarily calcium chloride, and another 6% from water treatment and recycling for frac reuse. Since announcing our new strategy over four years ago, we've charted a clear path for significant growth outside of the traditional oilfield services sector. Our planned future segments, these paths will be outlined today, along with our future planned changes to our external reporting.
Our planned future segments, displayed in the upper right-hand corner of this slide, will be specialty chemicals and minerals, water treatment and desalination, and energy services. As we'll detail today, these segments form a higher value portfolio driven by substantial growth, higher margins, and increased cash flow. These growth channels are expected to boost the company's revenues from just over $600 million trailing 12 months to approximately $1.25 billion by 2030. As the charts point out, this isn't just a growth story. This is about enhancing profitability, returns, and generating significant cash flow. While executing this transformation, we'll achieve a balanced mix of high-value energy services, which will still comprise about 36% of our revenue, another 36% in specialty chemicals and minerals, and an additional 28% in water treatment and desalination for beneficial reuse. You'll hear detailed information behind these numbers today from the team that's responsible for executing them.
Our years of solid execution and discipline to our strategic plan have us very excited and confident that we will be successful. Those familiar with our story over the past few years know that we have been directing all of our free cash flow from operations toward key investment enablers that will help us execute this strategy. This includes leveraging our extensive mineral resources in Arkansas to vertically integrate our bromine supply, which will allow for growth and margin expansion for our bromine end uses. We're also investing heavily in R&D to strengthen our deep water fluids offering, automating our sand management technology, and gaining a first-mover advantage in a beneficial reuse of produced water. By 2030, we anticipate generating significant free cash flow to consider returning capital through debt repayment, share buybacks, and dividends.
Additionally, we'll have the cash flow needed to determine the timing for our future lithium project, which is not included in our 2030 targets that we will share with you today, but remains a highly attractive option that we continue to evaluate. Now that you know the punchline, let's step back and give those of you less familiar with the company some background on how we got here. The company's been in business for over 40 years, and we started in the area that remains our strength, which is fluid chemistry for completion fluids. Originally, we were servicing the oil and gas industry. We gradually expanded into the industrial chemicals market, where today we are a leading global provider of calcium chloride. Our main businesses now focus on the global offshore completion fluids market, primarily deep water, water management for the unconventional plays in the U.S.
and Argentina, and, as mentioned, maintaining a strong position with our calcium chloride. The company's transformation is really primarily driven by three emerging growth areas: electrolytes for energy storage, desalination of produced water, and critical minerals from our brine leases in Arkansas. We have much to share about each of these areas today. Geographically, we're well positioned where we need to operate. Including the deep water markets of Gulf of America, Brazil, and the North Sea, along with a growing market in the Middle East. We've recently completed the expansion investment in each of our key offshore markets. Our international footprint is now well established to meet our long-term goals. Let me introduce our executive team, of whom I'm very proud, some of which you will hear from today. You'll notice that each of them has worked at and been successful in larger companies earlier in their careers.
Similar to me, they chose to join TETRA Technologies because of the entrepreneurial culture that we have developed, the opportunity to have a more direct impact on the company's success, and the bright future that we have in front of us. As we'll discuss, this team has delivered some excellent results over the last four to five years. Today, you'll hear from Roy on our future energy services, Matt on desalination, and Tim and I will jointly cover the specialty chemicals. I'm just as excited about our board of directors. As we transform the company, we have evolved the board by adding five new directors over the past five years. While maintaining strong core strengths in our energy services business, which remains very important for our future, we've added executive skills in specialty chemicals, including bromine and lithium, water solutions, and new energy.
The depth of our executive management and financial leadership experience on our board is substantial, with four former CEOs and two former CFOs. We now have a great mix of talent and experience to support our future. As mentioned, today we have two main segments, external reporting segments. About 55% of our revenue comes from completion fluids and products, and 45% from water management and flowback. The chart on the right is something we're very pleased with, which shows the improvements that we've made in the business, consistently increasing margins for nearly eight years, and developing a business model that stays highly resilient during the very tough cycles that our industry often encounters. Since announcing our divestiture of CSI Compresco and our new OneTETRA strategy in January of 2021, our financial performance has improved dramatically and is reflected in our share price appreciation of nearly 440% since that time.
Although we forecast substantial growth in revenue, EBITDA, and free cash flow through 2030, I want to highlight the exceptional performance this team has delivered over the past few years. Since 2021 and the start of our new journey, the company has increased revenue by 56%, EBITDA by 129%, and cash flow from operations 544%. These results were achieved despite an overall 19% decline in the current frac crews compared to the same period in 2021. This team has a proven track record of excellent execution and delivering results aligned with our future projections. Unlike many startups that predict rapid hockey stick financial growth, we have a stable, positive free cash flow generating business, a strong track record, and a battle-tested management team committed to achieving our results. As mentioned, we're planning to make changes to our current reporting segments, which are shown on the left-hand side of this slide.
Today, our completion fluids business is primarily, as we mentioned, offshore and primarily deep water, holding a well-recognized market leadership position and a strong calcium chloride business in both Europe and the United States. We're also innovators in the water management space with strong positions in water treatment, recycling for frac reuse, and sand management for unconventional flowback. Moving to the right-hand side of the slide represents how we plan to report in the future, which is how we will be presenting to you today. We will transition to three reporting segments shown on the right: energy services, specialty chemicals and minerals, and water treatment and desalination. Here are some key highlights from each of these new segments. Starting with energy services, we'll continue focusing on our leading and flagship business, completion fluids.
Roy will share the bright outlook for this product line and the broader deep water market as well. We'll also continue focusing on our market-leading flowback and sand management business by capturing additional market share, including new and emerging international opportunities. On the water services side, which is currently part of our water and flowback segment, we will transfer the water treatment for frac reuse into our newly formed water treatment and desalination segment. Matt will highlight in his presentation today. An important note to highlight is we are not including our water transfer business in our 2030 subsegments, as we will likely rationalize that business sometime between now and 2030. The good news for our employees in that business is they will be part of a much faster, exciting future new segment in our desalination segment.
Our newly formed specialty chemicals and minerals segment will consist of three primary subsegments: our current calcium chloride business, electrolytes for energy storage, which Tim will highlight in his presentation, and an array of key minerals, most of which are found in high concentration in our Smackover leases in Arkansas. Our third segment will focus on water treatment and desalination, which, as mentioned, includes our current treatment and recycling combined with our first-to-market, end-to-end Oasis TDS water desalination business. Again, Matt will cover this in great detail. We'll also hear via recorded video from the Chairman of the Texas Railroad Commission at our request, Jim Wright, and the CEO of B3 Insight, who are experts on analyzing trending subsurface disposal well pressures and their implications for the industry.
I'm frequently asked, how is it that TETRA is best positioned to capture these significant growth opportunities and enable the company to achieve these substantial financial targets? The short answer is that each of these areas revolves around fluid chemistry, especially brine chemistry. Our 40-plus years of developing brine chemistry solutions, operating chemical and evaporation plants, and extracting key minerals from brine is in our DNA. When considering the billions of barrels of brine water beneath the surface of the U.S. alone, and the richness of minerals within that brine water, containing concentrations of minerals much higher than in ocean water, and the ability to extract those minerals and desalinate that water for beneficial reuse, where water scarcity is becoming even more severe, it becomes clear why TETRA Technologies is in a unique position to lead the way in this area.
These synergies, summarized on this slide, describe the OneTETRA theme for our current and future business segments and are essential to our message today. Here we take a closer look at each segment, including growth targets, EBITDA margin expectations, and planned maintenance CapEx. For energy services, we expect a steady 5% to 8% compound annual growth as the deep water market expands through the end of this decade, and our testing and flowback technology continues to gain traction and expand internationally. Our new specialty chemicals and minerals segment is projected to grow to over $400 million in revenue, with EBITDA margins consistent with our current fluids and chemicals segment. The highest growth segment is our new water treatment and desalination business. We're targeting 500,000 barrels a day of produced water desalination by 2030. We believe a very conservative estimate, especially after you hear from our experts today.
You'll hear much more detail in the presentations this morning on each of these targets. However, we spent considerable time modeling these financial targets and are confident that these can be achieved. In summary, for my opening comments, TETRA Technologies has delivered exceptional financial performance since refocusing the company and establishing our OneTETRA strategy. Our market-leading position in deep water completion fluids and sand management will enable us to continue growing and expanding margins for our future energy services segment. Our strategic plan to leverage our fluid chemistry expertise has led to new high-growth markets for electrolytes, an industry-critical solution with the desalination of produced water, and the resources and capacity to bring critical minerals to the market. Thank you again for joining us this morning. You'll have a great opportunity to hear from a high-performing executive team and to meet with our board members over lunch.
I hope you find the OneTETRA 2030 story as compelling as every employee at TETRA Technologies does. Thank you.
Good morning, everybody. It's a pleasure to be here today and appreciate everybody taking the time. I wanted to start off quickly with an introduction for myself. I'm going to pull back one slide here. My name is Roy McNiven. I'm our Senior Vice President for Energy Services. I cover our global completion fluids, water, and flowback segments. I'm originally from Canada. I grew up on a cattle ranch in Southern Alberta, and I got my journeyman electrical certificate and then my MBA from Athabasca University. I joined the industry in the early 2000s, and my current role here, I've been for three years with TETRA Technologies. Prior to that, I was leading CSI Compresco, where TETRA Technologies was a general partner. We divested CSI Compresco, as Brady Murphy mentioned, in 2021.
I spent a year with the transaction, getting things handed over, and I stayed in contact with Brady Murphy and the rest of the management team because I was really excited about this transformation story that we're going to be delivering to you guys this morning. That's why I made the decision to come back. Prior to that, I spent the last 20 years at different various leadership roles at Nabors Industries and then in TESCO Corporation. I'm going to spend the next 30 minutes talking to you guys about a really exciting story that Brady Murphy just introduced to you. As TETRA Technologies continues to evolve in this transformation, our focus is going to be on transitioning to the highest performing businesses.
For Energy Services, that future state is going to be us moving the calcium chloride into Tim Miller's business that he's going to talk about in the industrial chemical side. Our water treatment and recycling segment is going to transition into our new water recycle and desalination segment. As we look towards 2030, we're going to continue to evaluate each business within Energy Services and direct our focus and investment towards our two highest performing segments today, which are completion fluids and our well testing and flowback offerings. I'm going to spend a little bit of time today talking to you about both of those in more detail. Sorry, this is not moving. Oh, apologies, it just stuck for a second. To get started, I think most everybody here is familiar with our current reporting segments. On the water and flowback segment, that consists of our water management offerings.
We provide water transfer services, water recycle, and water treatment services. On the flowback side, we provide flowback services, which consists of the sand management that Brady mentioned. In Argentina, we also provide early production facility and temporary production facility services for our clients. We are highly regarded for the quality service, technology, and automation that we offer to our customers. One of the things that we value most within TETRA is our people. An interesting story is in 2024, we underwent a rebranding exercise. Some of you have seen the OneTETRA tagline that Kurt opened with. That started with an employee and a customer survey where we went out and asked our customers, "What do you value most about TETRA?" We asked our people, "What do you hold in the highest regard?" Unilaterally, the answer was our people.
That is something that differentiates us and one of the reasons why we came across with the OneTETRA. We are very proud of our Permian Basin operations. Today, we hold a leadership position in water recycle, where we are recycling over 800,000 barrels per day of produced water. Matt Sanderson, my counterpart, is going to talk a little bit later about how that transition is in the tip of the spear for our new TETRA OASIS TDS (Total Desalination Solution). These slides have a little bit of a lag on them. There we go. To build on our highly differentiated flowback story, I am going to take a minute to explain what flowback is and where that operation comes into play. As you will see on the slide here, this talks about the total life cycle of a well from the beginning of drilling through to the actual production.
The flowback operation comes into play twice during the life cycle of a well, once during completion and once on the actual flowback when it is brought online for production. In the completion process, everybody here is familiar with the term fracking, right? You are moving sand and water down into the well bore. It is going through perforations and it is fracturing the rock so we can recover the oil and gas from that segment. That fracturing process is completed in stages. As they do those stages, they are putting plugs in the well to isolate those different zones. Those plugs later need to be drilled out and recovered. That is where the drill-out operation comes in. The completion flowback is where they are drilling those plugs out and they are flowing that debris back. We have to capture that. Historically, that's been done with a conventional solution.
We'll talk about that a little bit more in a couple of slides. What TETRA has brought to market is the automated drill-out, where we are automating this entire process, removing manpower from the operation and from hazards associated. This represents roughly a $350 million market opportunity for TETRA on U.S. land today. The next phase is on the production side. After the well's been completed, they bring it online for production. You're going to get all of that sand, that proppant that was moved downhole, and some of the debris formation back in high volumes. That can be very damaging to all of the production equipment if you don't capture that sand. That's where sand management comes into play and TETRA's automated sandstorm solution. We have a 99.4% recovery rate on sand with this solution. This represents a $550 million market on U.S.
land for TETRA today, and we have presence in all major basins. One thing that's in common here is TETRA's innovation, technology, automation, and people. How has TETRA applied technology solutions to improve operator economics and safety? I'm going to start by explaining a little bit more about our automated drill-out system and solution. One of the things that we focus on here is safety. Our industry is one that's known for having safety concerns. One of the things TETRA holds in the highest regard is keeping our people and our customers safe. One thing that most people might not be familiar with is the term red zone. I'm not talking about NFL. I'm talking about the actual red zone on a rig.
If you look at the picture on the left, all of that iron, flow iron, has high pressure, and we're moving in roughly anywhere from 2,000 to 8,000 PSI. That's a lot of pressure, a lot of iron, and a fairly high-risk job. There are also overhead suspended loads that people need to be cautious of. In a conventional setup, all of that equipment is operated manually. Some of these wells today and some of these pads, you have as many as 80 to 90 stages. These drill-out operations take five to six days. It's a lot of work, it's very manual, and it's high exposure. Our team up in Appalachia decided there had to be a better way. They worked with our engineering group in Houston, leveraged our proprietary new product development process, and they came up with the automated drill-out system.
We're the only people in the market with an automated solution for this today. If you look to the right, where there were people all over that iron and everything's scattered on location, on the right, we've got everything really neatly organized. A trailer that pulls onto location, we connect to, and everything's operated from that command center you see on the bottom left. This has actually allowed us to reduce the CapEx to deploy this solution because it's a lot less equipment. We reduce the amount of people required to manage this operation, and it's producing higher margins. The payback on this is less than a year. The returns are fantastic. Now, let's talk about the sandstorm. In 2018, TETRA introduced the sandstorm to the market, and it was rapidly adopted by our customers. The recovery rates on this are 99.4%.
This is in contrast to legacy cyclonic solutions that are in the 40% to 60% range. If you take a 60% range cyclonic solution, where they're having to typically put them in tandem, you're only recovering 75% of your sand production. Whereas with one unit, we're able to recover 99.4%. Our customers highly regard and highly value this solution. We also took some time to look at the market, the way things are going, and the evolution, and we identified the need for automation. In 2023, the team used that same new product development process to develop an automated solution, which is what you see on the right-hand side of the screen. That single unit is operated again from a command center, nobody having to manually actuate valves, nobody having to be in a high-pressure zone or a high-risk area. We're not done yet.
We have some really exciting stuff coming that's going to allow us to run this autonomously. That's something we'll hopefully be able to announce later on in the year. The same with the drill-out skid, right? We've got a reduction in the capital deployed for this solution. We've got a reduction in manpower, so higher margins and higher returns. The really exciting stuff for us. The other fact that comes in with this is this is all helping our operators achieve more efficient operations. It's not just a benefit to TETRA, it's also a benefit to our customers. They're able to reduce the days on location, they're able to see savings, and they're able to drive more efficient and safer operations. Transitioning to talking about U.S. land. At dinner last night, I was talking to Steven and Jay, and we were having a conversation about U.S.
land and the fact that it's really hard to put a positive spin on what's happening on U.S. land this year. It's no secret, drilling activity and frac activity is down year to date. I think the things that are important to note, though, is that it is stabilizing. I think we found our floor on oil, and it's starting to trend up. The future prospect for natural gas is very positive. We've got export capacity coming online. We've got domestic demand that's here. I'm not sure if everybody in the room saw the IEA article that came out last week. If you didn't, I took a second to write it down here. I'll quote it to you. The article was "Reverses Course on Oil and Gas Investments.
The World Needs to Develop New Oil and Gas Resources to Keep Output Flat Amidst Faster Declining Rates in Existing Fields." I'll say this. This didn't come as a shock to most people in this room, but it's good that somebody's finally admitting it. Oil and gas is going to be here for a long time to come, and we're excited about being part of this. In the next few slides, I'm going to talk about the fact that while wells frac, maybe stabilizing at lower levels, the opportunity for TETRA is still significant. In this graph, I took a second to go back to what we opened with, transitioning to highest performing businesses. This is our U.S. revenue for flowback operations plotted against a rig count. The things that are important to point out here are that since 2021, our revenue per U.S. rig has gone up 108%.
That's significant. We're taking market share, and we're driving higher margins and higher returns with our automation, our technology, and the innovation that we deploy. I think the last point to touch on here as well is that while we talk about automation, it only makes up roughly 10% of the market today. There's a lot of room for growth. Back to the story on U.S. land. When everybody hears and talks about U.S. land today, what are we hearing on U.S. rig count? Up or down? It's down. Frac spreads? Same thing. They're coming down. As U.S. production has increased and now plateaued, we're seeing it maintain with lower service level activities. Historically, this has been an indicator for oilfield services companies. We watch rig count, we watch frac spreads, and it's an indication of the health of oilfield services companies and our overall business.
Part of the drive behind this this year is the operator consolidation. The other factor that's behind it is something called operators' drive for efficiencies. It presents a pretty challenging picture for the traditional oilfield services company. It's not all bad. This is where TETRA departs from the norm. What you're seeing on the left-hand side here is our production flowback on the sandstorm, as we're looking at the proppant per well and the fract fluid per well. You guys might have heard of the term monster fracts, simal and trimal fracts. They're moving more water, they're moving more sand than ever. We're drilling longer laterals. They're getting in production out of 100 wells today what they used to get out of 130. It's a significant drive, and it's all the things that were on that slide before on the left, right? These efficiency gains.
TETRA is part of that story. When we're sitting here looking at longer wells, we hear longer laterals, right? We hear simal and trimal fracts and increased proppant and fract plugs. We hear more sand production to recover. We hear longer flowback operations and more plugs to drill out. This is a positive for TETRA. Not only is the water production continuing to decrease, which is going to be better for our recycle division, which is what Matt's going to talk about later, it's driving a lot of efficiency gains, and TETRA is part of that story. One thought to leave you guys with is when you hear operators' drive for efficiency, recognize that's good for TETRA's flowback business. Like the U.S., historically, conventional fields have been developed, and international markets are moving toward their unconventional assets as their next phase of production.
Automation and technology solutions we just spoke about are relevant as each of these models looks to exploit the learnings of U.S. shale. We've hosted multiple contingents from Argentina and from the Middle East here in Houston at our technology center, which I'll talk about in a little bit, and in our Permian Basin operations. They want to see what we're doing on the recycle, the water recycle side. They want to see what we're doing on flowback. They want to see what we're doing overall on water management because they're looking to learn from the United States as they go and develop their own assets. TETRA has an international presence in all three of the locations you see here. We're one of two publicly traded companies that offer water management and flowback services. Of those two, we're the only ones with an international footprint.
Like I mentioned, we're in all of these markets. The Vaca Muerta in Argentina is an area that we've been working in for over a decade, so we've got significant presence there. We have almost near full utilization on our well testing and our sand management assets in country. I mentioned earlier, we offer EPF or TPF services. The Vaca Muerta is very isolated, and they're just currently putting in all of the takeaway capacity, the pipeline capacity. How they're managing a lot of these fields is with these small production facilities, 10, 12, 15,000 barrels per day. TETRA offers those services. We design, we build, we manage those facilities, and they're typically on three to five-year contracts. That's a really lucrative business for us. Under the current administration, the future looks really bright in Argentina, and our ability to expatriate the cash has also been very favorable.
As we think about emerging markets, we look towards the Middle East, both the United Arab Emirates, Abu Dhabi, and Saudi Arabia. We've performed technical trials in both markets with our water management solutions, as well as our sand management solutions. There's a lot more to see here in the future. As I transition from my section from flowback over to completion fluids, I want to leave you with a few key thoughts. As referenced in the opening, we're transitioning to the highest value businesses, for which our most traditional oilfield services offering will be our flowback service line. We have a unique value proposition and differentiation through our advanced completion and flowback technology and automation. Our capital investment strategy for this segment supports projections to have our entire fleet of sand management systems automated by the end of 2028. As emphasized earlier, our automation and technology drive margin improvements.
Beyond saturating U.S. land, where automation only accounts for 10% of the current market, we have significant potential for expansion in key international unconventional markets where we are active today. TETRA's automation and technology is what's enabling our customers to achieve greater efficiency while improving their overall safety performance. Lastly, I'll leave you with a thought that when you hear operator drive for efficiency, remember that's good for TETRA's flowback business. Transitioning over to our completion fluids segment, I think everybody here is again familiar with what Brady opened with. This segment has historically consisted of our completion fluids and our industrial chemicals segment, which Tim Miller, my counterpart, is going to talk to you about shortly. As a leader in high-value completion fluid solutions for the past 45 years, we are highly regarded and recognized for unique and innovative solutions like TETRA's Neptune family of fluids.
Our commitment to safety and service quality continues to lead the market, where we have been recognized as the number one provider of completion fluids for four consecutive years with industry-leading customer loyalty and performance and product quality, technical support, and customer responsiveness in the annual Kimberlite Completion Fluids Industry Study. That's something we're very proud of. Additionally, our long-term bromine supply agreement ensures we have product availability, and our global infrastructure positions us to participate in all key deep water markets. Getting into the completion fluids business specifically, we continue to benefit from our innovation, quality, and vertical integration. Being highly differentiated, as you can see in the slide or on the right-hand side of this slide, has helped us maintain market share and ensured margin resilience, even through one of the worst down cycles our industry has ever experienced in 2020 and 2021.
The deep water market has been showing resurgence since 2022 and is backed by a robust long-term outlook that carries through 2030. More technically challenging and high-temperature wells are coming online, and 20K rigs are coming into the Gulf of America. We have a strong pipeline of Neptune and high-density zinc bromide opportunities ahead of us. With the incremental bromine supply coming in from our existing acreage in Arkansas, we're uniquely positioned to participate in a meaningful way. What are completion fluids and why are they important? I'll take a second to talk about where they come into play first. In the well construction process, you guys can see on the screen here in the center, right? A drilling rig arrives on, is spotted on location. They're going to drill a hole thousands of feet into the ground. They're going to case that hole. They're going to cement that hole.
Then they go to the completion phase. Part of that drilling process is using drilling mud, which has suspended solids in it. Those need to be removed and flushed from the casing string before you can bring production online. That's done with a completion fluid. A completion fluid is important because it helps manage downhole pressures, preventing well control issues or blowouts, while ensuring that the formation integrity remains strong and avoids corrosion to the casing string, again, maintaining the integrity of the well. They're chosen based on the density for pressure control, corrosion prevention, and compatibility with the reservoir. The deeper the well, the higher the pressure and the higher the temperature, hence the higher the density and corrosion resistance required. Deep water wells often use brominated fluids due to the higher pressures and temperatures, which I'll go into more on the next slide.
The global market for completion fluids is $1.1 billion. It's predominantly offshore and deep water, and TETRA Technologies has been a leader in this market for over 45 years. Completion fluids, clear brine fluids, or commonly referred to as CBFs, are a water-based fluid. They're composed of dissolved salts as a means for increasing the density of the fluid. It's unlike a typical drilling mud. There's no suspended solids in a CBF. Due to that, they won't cause any damage to or plug the reservoir pores. Engineered CBFs range in weight and density, and with respect to price, it increases as the density and weight increases. You'll see that illustrated on the chart. TETRA Technologies manufactures everything that's highlighted on the chart. We are the only manufacturer in the United States of zinc bromide. Achieving these higher densities for use in high-pressure applications is technically challenging.
That's part of what drives the price up and obviously the cost and the value proposition to the customer. Just as an example, if you take the average bottle of water, that's got a pounds per gallon weight of 8.33 pounds. That same bottle of water with the zinc bromide solution in it is going to weigh 2.54 pounds. It is very, when we think about technically challenging the science behind it, being able to get that much density into the same volume and prevent it from crystallizing or changing state or form so that you can use it and it can maintain the integrity of the well is something that TETRA is an expert at. The last couple of items to mention on this slide, you'll see cesium formate here. That's an alternate at higher densities.
The challenge with cesium is it's a mining process and the manufacturing process for it is very expensive. It's finite supply and quantities. A lot of times it's found to be not to be economically viable for completion projects. The other thing that's on this slide is our Neptune family of fluids. That's an alternate, obviously, to zinc at the higher densities as well as cesium. We're going to talk about that more throughout the course of this presentation. Why do we get excited about the fluids business and why should you? We talked about the long-term outlook for the deep water activity and it being robust.
As we see that long-term outlook improve and we think about some of the lower hanging fruit already being extracted, we're moving into these higher pressure and higher temperature wells, which are going to require more high-density fluids, which is right in TETRA's wheelhouse. As you recall from the brine density table, these are our higher margin businesses as well. Our strategic acquisitions in the key deep water markets, North Sea, Brazil, and Gulf of America have added to our capacity and our capability to our already well-entrenched position. They will continue to enable TETRA to service their key customers and be benefactors of key contract awards, such as a recent 20K rig award in the Gulf of America, the long-term brominated fluids contract in deep water Brazil, along with being the primary fluids provider for one of the largest operators in the Gulf of America.
Adding to TETRA's strengths and differentiators is our competency linkages. As the only vertically integrated completion fluids provider, TETRA has decades of fluid chemistry experience in their Conroe, Texas-based technology center, along with over 40 years of chemical manufacturing, which Tim is going to talk about shortly. Couple this with our people, systems, and processes behind our solutions that come with 45 years of experience as a leader in the completion fluid space. You've got the premier completion fluids provider in TETRA that our customers see. At the core of our innovation is the innovation group, or the TIG, as we refer to it internally.
The base of the TIG is a team of world-class experts in fluid chemistry with state-of-the-art labs and equipment who work directly with the technical teams of our internal and external customers to support current projects and develop solutions for the future to maintain our leadership position as an innovator. As you can see on this slide, this group holds multiple patents in this space, as well as a method for producing zinc bromide electrolyte. I've talked about the robust long-term outlook for the deep water market. Here you can see the oil and gas demand is projected to continue to increase almost over 25% through 2030. On the right-hand side, you'll see break-evens for the deep water market. The important thing to note here is over 83% of deep water markets have break-evens less than $45 per barrel. If you're following U.S. land, these are fantastic.
How is that achieved? If you think about the significance of an investment for a deep water well, it's in the tens, hundreds of millions of dollars, but it's recovered over a very long period of time. When you think about Permian Basin and decline curves, we're talking about wells with life cycles of years. Offshore, we're talking about wells with life cycles of decades, and the decline curves are much further out. These economics are recovered over a significant period of time. When you think about the offshore market and how long these wells stay in play, it's no wonder that the market's so bullish and our view of the market is so bullish. These deep water economics are going to remain attractive even in low-price environments.
When TETRA looks at the market, and we use indicators and what we're watching, these are some of the things we're looking at. We're looking at CapEx investments. If you look at offshore CapEx projections through 2028, they're increasing over 41%. If you take into account the planning cycle for a deep water well being longer than three years, these deep water forecasts start to look a lot less like projections and a lot more like backlog. This is further enforced by the global floater demand. These rigs are contracted years out and they're contracted for years. These aren't wells that get shut in when oil drops a dollar or two. These are long-term projects that are planned for a long time. The deep water floater rig count is projected to increase over 27% through 2028.
Coming back to the high-pressure and high-temperature wells and the demand increasing for these zinc fluids and for potentially Neptune, right? The left-hand chart shows TETRA Technologies' revenue against the global floater count, where you can see our revenue per floater has continued to increase significantly year over year. We see the demand increasing in deep water activity, but the percentage of deep water wells require heavily brominated fluids. This supports our bullish outlook. On the last slide, I talked a little bit about backlog. Something people here might be familiar with is subsea tree installations. On the right-hand side, you can see our bromine revenue plotted against subsea tree installations. When a subsea tree is being purchased, it's indicative of a well being completed in the future, along with the completion where completion fluids are going to be required.
As you can see, that's going to be an opportunity for TETRA Technologies, as it has been in the past. When you think about Technip and FMC reported on a backlog, recognize that's an indicator for an upcoming completion fluid opportunity. Here we're looking at a map of global completions that require a fluid density of greater than 14 pounds per gallon. These are items that fall right within TETRA Technologies' sweet spot. There's over 550 offshore leases. Whether it's going to be a calcium bromide, calcium zinc bromide, or a Neptune opportunity, this falls right in our wheelhouse. We think about the high-pressure and high-temperature wells. We think about higher-density fluids and often the zinc bromide. It's important to note that some markets don't allow the use of zinc. They consider it a marine pollutant. There are two solutions if you can't use zinc.
It becomes cesium formate, which we talked about earlier, being cost-prohibitive for well economics, and you have TETRA Technologies' Neptune. Transitioning to this slide, I want to talk a little bit more about Neptune. We'll take a second. This picture that you see, it's a little bit distracting. That's a jackup. You're standing on the top of the legs of a jackup and looking down on the rig floor. We touched on the fact that zinc bromide solutions can be banned in certain markets, right? Beyond that, zinc can be very corrosive in nature, particularly at higher temperatures, and can damage downhole metallurgy, elastomers, and surface facilities unless they're specifically engineered to handle the fluid. How was Neptune born? In 2015, we had a super major in the Gulf of America with a multi-billion dollar capital investment for deep water field development come to us with a significant challenge.
They couldn't use zinc to complete their well due to the production facility not being able to take it on and the high pressures in the reservoir. TETRA, over the course of 18 months, was the only company that was able to rise to the challenge. We delivered a non-corrosive, environmentally friendly, and solids-free, non-formation damaging solution, which is TETRA's Neptune. That saved the customer over $100 million on that four-well project. Since Neptune's been introduced to the market, TETRA's generated over $150 million in revenues. I talked about TETRA being a family of, or Neptune being a family of fluids. What I think most people have been accustomed to is these significant wells that generate, you know, plus or minus $10 million per well in revenue. The reality is it is a family of fluids and there are applications where this is being deployed much more commonly.
In markets like Norway and even in the Gulf of America, you're going to see that Neptune's deployed in applications like gravitational displacement and carrier fluids for reservoir simulation and packer fluids. When we think about the future, we've got some significant opportunities, some of which are going to be in the drill-in fluid space and for high-density fract fluids. There are a lot of things we're excited about going forward. Thinking about the Gulf of America and what's coming next, I talked a little bit about 20K rigs. Where these rigs are going is somewhere called the lower tertiary. With all markets, most of the low-hanging fruit has been extracted and the development is moving towards more technically challenging environments. The Gulf of America is no exception. The next frontier is the lower tertiary where we're seeing more high-pressure and high-temperature wells.
This is driving the requirement for these 20K rigs that I talked about, where we were recently awarded one of the two that are working in the Gulf of America. The higher pressures are going to require zinc-like densities, for which TETRA is the only manufacturer based in the U.S. However, due to the high temperatures, and like I mentioned earlier, zinc can be corrosive and some production facilities don't allow it, which means they're going to look towards alternative solutions, for which TETRA's Neptune is the most viable. As we get towards the end of this section, I want to highlight a couple of things. With our competency linkages, our IP portfolio, the innovation and commitment to quality, TETRA will continue to be a leader in completion fluids, introducing innovative solutions such as TETRA's Neptune to help solve upcoming challenges for our industry and for our customers.
We're poised for growth and value creation through our strategic positioning and expansion investments in the Gulf of America and in Brazil. Leveraging our internal innovation and bromine project to further enhance margin and gain market share, we're going to drive some of the strongest returns in our sector. As we look towards 2030, we believe this business is going to continue to grow at a 7% to 10% CAGR while maintaining or even increasing margins as more high-density wells come online. One of the important points to note, most of the investment for our facilities and our infrastructure has already been made and is in place. It's going to continue to drive even better returns in this segment. Lastly, as I close out on my section and transition over to my counterpart, Matt Sanderson, I hope everybody's excited about the future of energy services business as we are.
Brady mentioned it earlier. This is a business we're in today. These aren't future-like statements. This is businesses that are performing and producing cash flow as we speak. TETRA is actively transitioning its energy services portfolio to the highest performing segments, which are completion fluids, well testing, and flowback that I just talked about this morning. This streamlined focus will continue to drive growth along with margin enhancement. Our proprietary solutions, like the automated drill-out and sandstorm technologies, deliver superior safety, efficiency, and market-leading recovery rates for our customers. When you hear operator efficiencies, remember that's good for TETRA. TETRA's completion fluids business is positioned for long-term growth, fueled by rise in demand for high-density fluids in deep water and in high-pressure, high-temperature wells. This is supported by our strategic acquisitions and the vertical integration of our bromine asset.
When you hear high-pressure, high-temperature wells, remember that's right in TETRA's sweet spot. Lastly, we have room for expansion with our international footprint. With that, I'll hand it over to Matt. Thank you.
All right. Thanks, Chief Commercial Officer for TETRA. Last name Sanderson. You heard Roy mention sandstorm. I would suggest there might be a linkage in there somewhere. I grew up not in South Texas. You know, you're going to hear my buddy Tim over here, slightly different accent from mine. I did not grow up in West Texas, like Elijio. In fact, I grew up just about a seven-hour drive north of here. As we were preparing for this presentation, I was looking back a little bit and I was thinking it's been almost 30 years since I graduated with a civil environmental engineering degree from Queen's University up in Canada. Immediately upon graduation, I went to work for a company called Schlumberger, also now known as SLB. I held various field operational functional management roles.
In fact, one of the first jobs I ever did was outside on a rig. It was minus 50. Anybody want to guess? Was that Celsius, Fahrenheit? If you actually look it up, it's the same thing, right? It's just really, really cold. I also had opportunities where, 22 years old, I went to work in a helicopter. In fact, halfway to Greenland, where the Titanic sunk, you know, icebergs floating by. In fact, one time I remember getting evacuated in the middle of the night because 60-foot high waves were approaching the rig. Needless to say, it was an adventure. After escaping icebergs, freezing cold in Canada, I had the fortunate opportunity to move over to Australia. This was almost 25 years ago. Went from Australia up to Thailand, over to India. In fact, in India, I was the Director of HR for Schlumberger for a very large region.
I'm not from India. My background is an engineer. Was not an HR professional, albeit that was a short-lived assignment. SLB then thought better, and they bought a company back in Canada. I quickly moved back there. Nancy knows the story behind that one. In 2012, I relocated down to the U.S. During that time as well, I was also very proud to have completed my master's degree at Heriot-Watt over in Edinburgh, Scotland. Who here is a golf fan? Couple, right? The Ryder Cup's on right now. I will offer, I took advantage of the fact of going to school in Scotland for a few years to get the golf bug and play a little bit. I'm going to reference golfing again in the presentation. Now, going back, again, looking back in time, preparing for this, it was almost nine years ago when I received a phone call.
That call was an opportunity to join TETRA. I knew who TETRA was, but I didn't know a lot about the company. I was gainfully employed at the time, a relatively, maybe the youngest VP in my former employer's company with an upward trajectory. I kept getting more and more phone calls saying, "Matt, you need to look at TETRA. There's an opportunity. We know they've been calling." I said, "Fine. Right. What can it hurt? I'm going to go for an interview." I went to Houston and over two days was grilled. Person after person after person coming in. At the end of the two days, the big heavy hitters came in. Bill Sullivan, who was Chairman of the Board, and Dr. Tom Bates. Where's Tom? Tom's here today. Tom's one of our board members. At the end of those two days, Tom got to the brass tacks.
He looks at me. He goes, "All right, Matt. What's it going to take to get you to join TETRA?" I looked at him. I said, "It's really simple, Tom. I need a round of golf at Blue Jack National." He paused. He looks at me. He goes, "What?" Then all of a sudden, he got this big grin and he looked down at his golf shirt, which had a Blue Jack emblem on there, and he goes, "Smart guy." At that point, I had made the decision to leave SLB after 20 years to join TETRA. The reason being, I could see the tremendous potential in the company. Brady touched on some of that a little bit earlier. The goal here today is that really, hopefully, after today's session, you guys walk away with the same impression, you see that same potential in TETRA that I do.
Switching gears, who here is aware that the U.S. is the number one producer of crude oil in the world? Think a few, right? More than 13 million barrels a day of daily production. Who here is aware that on average, with each and every barrel of crude produced, there comes along with it four or five barrels of what we call produced water? Few hands? Yeah. Put that in perspective. If you look at the Permian alone, that's 24 million barrels of produced water each and every day. I was trying to think about that. I knew it was coming up to New York City. What do you do when you're lost for words? You check ChatGPT. You check AI. I said, "Put 24 million barrels a day of production into context in New York City." All right.
The answer that came back was, we heard Roy talk about the red zone. It came back with NFL. I said, "Okay, think about a modern-day NFL stadium like a big swimming pool. 24 million barrels a day of produced water is enough to fill 100 NFL stadiums each and every day. Closer to home, the Jackie Kennedy Onassis Reservoir over in Central Park, that 24 million barrels a day of Permian produced water fills that reservoir every single day. Amazing. The other thing before we move on, you heard Brady mention the word oasis. Take a look at the photo. Okay. That's by design. There might be a quiz or a question a little bit later about that, but be thinking about oasis. Have that visual. Stark, arid land. However, in the middle of all of it, life, right, fueled by a valuable resource.
There are several challenges facing our industry today, but overall, I would offer that the most pressing is related to water. In many regions, there's crippling drought, freshwater depletion. In some regions like the Permian, which I mentioned, there's an overabundance of produced water. Today, the vast majority of that water is put into the ground. However, as you're going to hear from several speakers today, the window for disposing of more water underground is closing, and it's closing quickly. We're going to talk about several solutions available to some of these challenges that are being deployed today. Some of those are out of basin disposal. You may have heard of it. Moving to shallow from deep disposal, recycling for frac, which Roy touched on. Lastly, we'll talk about desalination and beneficial reuse. We've been producing oil and natural gas in the U.S.
and around the world for well over 100 years. Why is this produced water such a challenge today? Rather than having me explain, I thought it would be beneficial for you to hear it directly from the state agency with the primary responsibility over the industry in Texas. Unfortunately, Jim Wright, Chairman of the Texas Railroad Commission, was unable to be with us in person today. However, he was kind enough to provide his comments and perspective on this subject.
I think you have to kind of go back to the beginning so that people understand what comes along with oil and gas that we've generated beneath the surface of the Earth. It's not just oil and gas that comes to the top. It also has water, what we refer to as produced water. You've got some level of gas, some level of crude oil, and some level of produced water. Today, those averages are somewhere between four and five barrels of water for every barrel of crude that gets produced. Our crude production today is basically six million barrels a day. If you do the math on that, that's 24 million barrels, not gallons, barrels of produced water that Texas generates alone.
In total, we've got about 30 million barrels of water every day that we're having to handle by reinjecting that into zones that we're not producing that oil and natural gas from. What that means is it's got to go in a zone other than the zone that that resource is actually being extracted from. You ask, why don't you just put it back where it came from? It's almost impossible to do that because the new way of drilling today is horizontal fracking. That fracking is cracking really tough, tight formation rock. To try to put that water back into those tight formations is almost impossible. You've got to look for formations that are more porous that allow that water to dissipate. It's either got to go in a formation above or below where that production is. The commission is looking at that very hard.
We've determined some seismic areas that are very vulnerable to that. We've curtailed that now where a lot of that water has to go into a shallower injection. When shallower is good, it lessens the threat of seismicity, but it also builds pressure in those shallower formations, which are closer to our groundwater sources than.
you would in a deeper formation, which could cause that water to find a path of least resistance, like older wells, bores, that could take it into groundwater.
Okay. As you just heard from Chairman Wright, the produced water challenges are a particular concern in these unconventional shale developments. I suggest that as that development activity expands into lower quality acreage, you've heard the term Tier 2, Tier 3, those water volumes are only expected to increase. Much of the data and discussion today is really going to be focused on the Permian for a reason, right? The sheer size of the issue in the Permian today, plus the immediate need for a solution. However, as unconventional field development continues around the world, you know, places like the Middle East, over in Latin America, in fact, I had a discussion at dinner last night about some of these activities that are going on today. As Roy mentioned, we're in those basins already. Undoubtedly, the folks in those regions are going to be looking to the U.S.
to understand how we've addressed those challenges. As mentioned, the Permian alone produces over 24 million barrels a day. Again, put that in context. That's over 9 billion barrels of water each and every year that has to be addressed. Treatment and recycling for reuse and frack, Roy talked about that, that's increasing. However, you can see the volume is still relatively small. Overwhelmingly, most of that water is disposed of. Conversely, this is at the same time where you have several markets that require abundant, clean, fresh water. You've got something on one hand that's being treated like a waste, and right next door, you've got somebody that needs something that's very, very similar.
I'm Kelly Bennett, CEO of B3 Insight, the leading provider of data and analytics to the oilfield water management industry. The Permian water challenge has been in the news a lot over the last year, but what is it exactly? At its core, the issue is the tremendous amount of water produced in the basin. Each oil well produces 3 to 5 barrels of water per barrel of oil, depending on the location. The industry has increased use of this water in completions significantly. This year, 66% of all water used in completions will be produced water, and we expect that number to grow by 2 million barrels a day over the next decade. In order to support even modest growth in oil production over the next decade, injected volumes will need to grow nearly 40% or over 6 million barrels per day. This is where the challenge gets complicated.
Injecting into disposal formations has created a growing level of pressure in those formations themselves. This pressure has been linked to seismicity and surface flows and creates challenges for both existing producing wells and in the process of drilling new wells. Pressure is a Permian-wide issue, but as pressure rises, it reduces the amount of water that you can safely inject in a disposal well, what we call the operational capacity, eventually rendering that well unusable. Pressure limitations will likely cause disposal needs to exceed the available operational capacity in existing wells by the late part of 2028, resulting in rapidly growing volumes of water with no clear place to go. I'm Kelly Bennett, CEO of B3 Insight.
Quick apologies, as you saw with Roy, this thing's sticking a little bit. I did miss one slide that introduces Kelly. Kelly's firm, B3 Insight, really models produced water disposal in places like the Permian Basin. You heard some of the data and the modeling that Kelly and his team at B3 have been putting out there in the public domain. I recommend that you have a look at it. As Kelly mentioned, the formation pressures in the Permian Basin have been increasing significantly as the result of disposal produced water into shallow formations. What you see in this slide here highlights those pressure increases in just the past seven years. For those of you not familiar with it, there's a very faint line right here. That's the border between New Mexico and Texas.
This part that you see over here, this is really what's referred to as the Delaware Basin out in the Permian. Over here is the Midland Basin in the Permian. What you see in the blue shading, that's the typical downhole water pressure at 0.33 psi per linear foot. Over to the right, the reddish or the brown shading that you see, that's where those pressures in just seven years have risen to 0.72 from 0.433. Basically, a 70% increase over normal downhole pressures. As you heard from both Kelly and Chairman Wright, that's unsustainable, and it's causing several issues. Right now, one of the solutions that's being proposed, and you're going to hear about it, is shifting some of the disposal from this area in the Delaware over to what's called the Central Platform.
In essence, back to the swimming pool analogy, we've essentially filled up all the swimming pools in our town. We're going down the street to the next town over, we're going to start filling up those swimming pools. However, out of basins disposal, I would suggest, is not a long-term solution and significantly increases both the capital and operating costs associated with that disposal. In fact, a recent announcement by a midstream company launching a brand new project, a 42-mile pipeline, 30 inches in diameter, capital cost approaching $0.5 billion, with a B. Again, I would suggest this is a stopgap measure and not a long-term solution. As Kelly explained, the pore space or operating capacity is being filled up. The water production continues to rise, and even if we factor in increases in treatment and recycling, it's simply not enough.
In fact, Kelly's firm, their modeling, they project that as soon as the end of 2028, there's no more disposal capacity in the Delaware Basin. Simply, as he said, there's no place for the water to go. As we touched on a little bit earlier, that water is associated with what? Crude production. On average, four to five barrels of crude for every barrel of water. You can imagine that in this scenario, somewhere in the future, over here to the right, you've got over 6 million barrels of produced water being modeled that again has no place to go. The associated crude production with that water could be north of a million barrels a day. Think about that for a second. The Permian having to shut in over a million barrels a day of crude production simply because no place to put the water.
You can do the math, the numbers become very big very quickly. We've touched on the magnitude of the problem and issues associated with disposal. We've talked about different solutions that are in play to address out of basin disposal, moving from deep to shallow. We've talked about recycling and treatment for frack and a little bit upon beneficial reuse. What we talked about is this overabundance of produced water today being treated like a waste. By and large, throughout history, water is really the most valuable resource on the planet. Huge demand, right? What if we could repurpose, transform that to be used over there? That's what we're going to be talking about. Sorry, this thing is really sticking. We've got a bit of a thorough understanding of the magnitude of the problem. Why is it that TETRA is here to bring a solution to the market?
Brady touched on it. You're going to hear a similar theme over and over during this morning. Really, TETRA's core competencies have not changed: service, technology development, deployment, fluid chemistry, specifically saltwater experience in terms of chemistry. I would suggest these are the very core competencies required to desalinate oilfield produced water. Roy touched on the fact that treatment and recycling of produced water for frack will continue to increase. This represents a meaningful opportunity for TETRA. As he mentioned, we have a leading position in that market today. In fact, we have over 400 team members working in the Permian Basin, serving a broad customer base that includes both EMP operators and midstream companies alike. The very folks that are producing this water, moving it around, and being challenged with the disposal.
The competencies and technologies that we are and will be deploying in this space are really the first step in the desalination process. The next step in desal requires the operation of a chemical plant, specifically a plant designed to process saltwater. As my South Texas friend, Tim, over here will explain, TETRA owns and operates chemical plants around the world. Specifically, these are chemical plants that process water for commercial applications, including those that must exceed the highest quality of standards and regulatory requirements, including food-grade qualification. In fact, we even have a plant that utilizes thermal evaporation and crystallization technology. Up in El Dorado, Arkansas, we not only built but operated a thermal evaporation plant that processed over 24,000 barrels a day of produced water for the sole purpose of extracting various minerals for commercial applications. Why is this relevant?
Quite frankly, boiling water, condensing it, it's well understood. It's relatively easy. That's what thermal does. However, the economics associated with thermal evaporation are extremely expensive. Both the CapEx and OpEx and the ability to scale to much larger volumes are economically prohibitive. I'd suggest that because we own and operate one of these plants, we have a very unique understanding of thermal evaporation. Okay? Why is this relevant? Why am I bringing it up? You may have heard in the news, some folks, because it is simple, are considering using thermal evaporation for desalination of oilfield produced water. I would suggest this is a big hammer approach. We looked at it over six years ago. We moved past it to something a little more, I'll call it surgical. Where do we look?
I think most folks in the room would be aware that on a global scale, seawater desalination is a well-understood, well-known process. Overwhelmingly, membrane-based technology is used to desalinate seawater for the simple reason that the economics are very favorable. This desalination technology works very, very well at scale. In fact, you see over here on your right a desalination plant in Indonesia designed for over 175,000 barrels a day of seawater desalination. I would suggest that the scale associated with that plant is much more aligned with the throughput volumes we talked about in the Permian. Now, in your mind, compare that picture that you see, those throughput volumes, to what you saw earlier with the El Dorado plant, our thermal evaporation plant that processes 24,000 barrels a day. Much smaller, much more efficient package, much more economical.
However, I think everybody in the room will appreciate that seawater is not exactly the same as oilfield produced water. The total dissolved solids, or TDS, in oilfield water tends to be much, much higher than seawater. The organic compounds, or TOCs, also tend to be different. You can also imagine the different chemicals and compounds found in oilfield water different, again, than what you find in seawater. However, leveraging our more than 40-year history in chemistry, service technology, specifically saltwater chemistry, you're going to hear a little bit later that we have the ability to analyze what's in that water down to the parts per billion. We also have the ability to then treat and remove those different compounds, those elements, those minerals, so that membrane-based technology can be effectively used.
We heard previously from Chairman Wright and Kelly with B3 that both the risk and costs associated with produced water disposal continue to rise. Chairman Wright was also kind enough to share with us his views on alternative solutions to disposal and why the timing for these technologies is now.
It's imperative that, as the oil and gas industry, as the Federal Commission of Texas, we start looking at the possibility of alternative uses for this water to decrease the chances of seismicity or those chances in overpressurization that could make its way to our pressure-stressed groundwater sources, and to try to be a supply that could maybe be used to regenerate our surface water sources or aquifers or the vast amount of irrigation needs that we have everywhere west of the 98th meridian. Industry and the Commission both have looked really strong and hard at what are alternative uses for this water. Has technology come far enough for us to treat that water and use it for water needs that we need, especially everything west of the 98th, as I talked about it before?
When you looked at that smaller circle, what it's really caused is for us to move that water as much as we can outside that circle. We know that infrastructure cost increases the cost of disposal. When we looked at very favorable injection rates a long time ago, today, those rates are much greater because we're having to build the infrastructure and the cost to transport that water further out of those zones. That price has gone up, I would say today, probably in the magnitude of three to four times what we had ever imagined. When you look at technology of treating this water for beneficial reuses, the economics, which started out five years ago being this different, are now like this whenever you look at cost.
I think now is the time for the industry that we regulate, the oil and gas industry, for us to look at kind of killing two birds with one stone. Let's find out how do we keep from injecting this stuff and causing issues like seismicity, overpressurization, and how do we solve some of the drought conditions that we've been experiencing here in Texas.
All right. Seems like neither one of these things works very well. Bear with me. As Chairman Wright stated, the million-dollar question, if you will, everyone asks, what about the economics? We had a discussion this morning, John and I, about that. You just heard it from the horse's mouth, right? The economics with produced water disposal, the risk and the costs are rising. At the very same time, the risk and costs with disposal, or pardon me, with desalination, are falling. Continued disposal of produced water, again, fails to recognize that by and large, clean, fresh water is a valuable resource, again, virtually everywhere in the world. As you saw in some earlier pictures, as you can well imagine, unconventional field developments have a bunch of land, but they also tend to be in pretty arid, dry climates. Sorry, trying to get this moving forward as well. Okay. Yeah.
Close the podium? Okay, thanks. As Chairman Wright mentioned, things like agriculture in Texas, tremendous demand for this water. Who here has heard about AI? Data centers, room full of investment bankers, okay? I'm sure everybody is aware of it. In simplistic terms, what does AI need? AI needs land, needs a lot of power, it needs a lot of water. Guess what? The Permian Basin has all three in abundance. The market opportunity for desalinating produced water, I'd suggest, is significant, but so is the opportunity to exploit the other minerals in the water. During the process of desalination, those other minerals in the water are variably increased in concentration and create an additional opportunity to further improve the overall commercial aspects of a project.
As you'll learn today from Tim and Brady and others, TETRA Technologies has the knowledge and proven ability to remove minerals from the produced water streams. In some cases, we've been doing it for several years already. Roy was wrong. It doesn't work any better near here. Let's try. Maybe new battery. Taking a pause, quite simply, if desalinating oilfield produced water at scale was easy, it would have been done already. However, you heard from the Chairman of the Texas Railroad Commission, the costs and risks associated with disposal continue to rise, while the costs and risks associated with desalination continue to fall. What was once a wide gap has narrowed considerably. The regulatory environment is changing, and new measures are being passed to enable the use of this desalinated water for various applications. Our technical ability as a company to desalinate this produced water, it's been demonstrated.
We're ready for commercial applications. At the very same time, there's significant market demand for desalinated water from a wide variety of industries. I'd suggest this is a time where these favorable market dynamics are converging with TETRA's core competencies. After more than half a decade of overcoming the aforementioned barriers, we're really excited to announce that we have a viable commercial offering. TETRA OASIS, I remember the photo from the beginning, right? Total Desalination Solution, or TETRA OASIS TDS. As Roy touched on, you look over here to the left, we are delivering water management services and technologies to customers in unconventional basins today. These are the midstream and E&P operators that are producing this water and are faced with these disposal challenges. As Roy also mentioned, we're a leading provider of treatment and recycling services and technologies. These are the first step in the desalination process.
We operate saltwater-based chemical plants. This is the basis for future desalination plants. We've evaluated and exclusively licensed specific technologies because we moved past thermal evaporation six years ago. We're going to talk in the next couple of slides a little bit about vacuum membrane distillation, VMD. You may have heard the term KMX. In fact, the CEO of KMX, Zach, he's sitting there at the back smiling. Take an opportunity to say hi to Zach. The next one is a bit of a challenge. Osmatically assisted reverse osmosis. Say that a bunch of times really fast in front of a room full of strangers. I practiced that one a couple of times. OARO is what we're going to go with right now. We're going to talk about these a little bit later. You get into post-treatment.
We have the proven ability to analyze, treat, and desalinate this water down to a beneficial reuse spec as designed by our customers. I'll call out for a moment: ammonia. In some cases, depending on the beneficial reuse application, you want to remove that ammonia. We can do it. We can do it easily. However, I would suggest in other beneficial reuse applications, like agriculture, what is ammonia? It's a fertilizer, right? A little bit of ammonia in that water as a fertilizer is of more value to the agriculture industry, so you wouldn't spend the time or money to remove it. Okay, understanding those economics. We have the proven ability to extract and commercialize minerals from produced water. Again, this can help the economics. It's because of all these core competencies that we believe that TETRA Technologies is ideally suited to provide a complete end-to-end desalination solution.
Left to right. These are our customers today. I mentioned previously that we'd exclusively licensed two different membrane-based technologies. Why? Like most things, there's pros and cons to everything, right? We wanted to leverage the strengths of these different technologies and minimize some of the areas that were less strong. In this situation, our unique patent-pending TETRA OASIS TDS utilizes a hybrid type system where we take advantage of the OARO technology at the bottom left, where the economics, both CapEx and OpEx in this electrically driven technology, are much, much lower. As we concentrate up the water, move up to the right, the economics with a vacuum membrane distillation solution, VMD, become much more attractive. You can see we shift over. A hybrid solution taking advantage of the strengths of both of these technologies from a CapEx and OpEx standpoint.
Another distinct advantage of our TETRA OASIS TDS is the multi-barrier approach as it relates to contaminants. Our pre-treatment technologies remove these contaminants. However, anything that might still remain in that water is then effectively captured by the membranes themselves before it ever even reaches the post-treatment process. We've done extensive internal testing, a broad range of different waters, a broad range of different applications. We've had third-party labs test our desalinated water, even performing what's called a whole effluent toxicity test, wet test for sure. Basically, what they do is they subject freshwater species of fish to the desalinated water for acute and chronic testing, see if they swim and survive. I'm pleased to announce that they did. The water is extremely clean. In fact, how do you like the water you're drinking today? No, we didn't go that far. We could.
As mentioned, if it was easy, anybody could do it. It would have been done a long, long time ago. However, we've been really focusing our efforts for over six years. We have a strong market presence in places like Oklahoma. We identified the issues with disposal, such as seismicity, things like that, a long time ago, and predicted that these would manifest themselves in a much larger way in places like the Permian Basin. You can see here, we exclusively licensed these technologies over three years ago. That was before anybody else was even talking about desalinating, running field pilots, things like that. We'd already locked in agreements with key partners such as Zach. Did I mention field pilots? We ran one in South Texas successfully over three years ago.
We then spent the next couple of years testing, validating, putting the solution through its paces before ultimately we came out and said, "Listen, we've got a solution. We're commercial. We're ready to go." Since then, very proud to announce that we have a collaboration with EOG. You've heard Texas passed Bill 49 that enables this water to be reused in a variety of different industries. With our unique set of core competencies, we've been working at this for some time to, again, bring an economically viable solution. Now, because the clicker takes so long, you had a long time to look at that timeline, so you might have picked up the fact that earlier this year we also won a Heart Energy Award, a Specialist Meritus Award for Engineering and Innovation in the Water category.
You heard earlier from Roy, we've also won awards for our TETRA CS Neptune, which he touched on, right? We're very proud of this. We're bringing solutions to an industry-wide problem. Everybody wants to know what does this mean, right? What's the size of the financial opportunity? Stephen's on his calculator already, right? He's trying to do the math. Forget unconventional fields overseas. Forget right now those are even an opportunity. Let's not even consider other unconventional fields in the U.S. Forget the fact that water in the Permian is going to continue to rise. For a moment, assume that the water that's disposed of in the Permian today, that's an addressable market: 6.3 billion barrels. A certain % of that, assume what you want, will go towards desalination. Assume those volumes can be treated to a desal spec for $1.50 to $2 a barrel.
Assume everything I've said today about TETRA's core competencies enables us to participate at a certain level in this market. Again, make your own assumptions. I would suggest that regardless of what assumptions you make, this is an overall meaningful opportunity for TETRA. As Brady mentioned, we are targeting 500,000 barrels a day by 2030. Bear with me here, we're getting there. I don't want to hyperclick. If there are some IT guys, we're going to need something better for the next folks. During our recent Q2 earnings call, Brady and Kurt Hallead announced that we're in the process of finalizing the engineering design for a 25,000-barrel-a-day desalination facility specifically for the Permian. The design will be scalable to address much larger volumes in the future.
With respect to capital, that's the next question that Kurt Hallead gets, and we'll leave him to cover that at the end of the presentation. I would suggest that our customers have varying capital strategies in terms of how they deploy their money. As such, we're going to have flexible commercial models. Again, we're a service and technology provider. Some models, in order to deploy this very, very quickly to market, we're going to have long-term agreements that have both an operation and maintenance component in there, along with a licensing fee. We'll touch on this model a little bit later in Kurt Hallead's presentation. We're getting near the end. We can get another clicker maybe for the next presenter. Of course, we have a break. We're almost there. Bear with me. Really, why TETRA? Why now?
As you heard from both Chairman Wright and Kelly with B3, the costs and risks associated with disposal are increasing. The pore space is being exhausted, and the downhole pressures continue to rise. The demand for this water continues to increase while the regulatory framework evolves to enable various industries to use this reclaimed water in their operations. Mineral extraction provides an opportunity to further improve overall project economics while in parallel addressing an area of strategic importance here in the U.S. and other places in the world. At some point, I'm going to throw this thing. Go to the backup. All of this aligns again with TETRA's core competencies around service, technology, and saltwater or fluid chemistry. All these market forces are converging at exactly the right time. In terms of next steps, we'll finish the engineering design for the 25,000-barrel-a-day plant.
We'll continue to move the ball downfield towards our stated targets of processing 500,000 barrels per day of produced water by 2030. As Brady mentioned, we'd suggest that's a relatively conservative estimate. It's a relatively small volume when you consider the overall produced water volumes that are being disposed of today. However, it's a start. I would suggest, as you can see on the screen, this would be a meaningful opportunity for TETRA. In summary, unconventional oil and gas production generates a massive amount of water. Permian, 100 NFL football fields every single day, causing significant issues, like you heard from the Chairman. An increasing amount of that water is being recycled and treated for reuse in frack. That's an opportunity for TETRA itself. However, again, the vast majority of this water is being disposed of as a waste.
The risk and costs associated with that disposal continue to rise to the point that the disposal capacity in the Delaware Basin could be exhausted in less than four years. You heard that from Kelly. TETRA OASIS TDS is a viable alternative that transforms this waste into a resource with broad market applications. TETRA's unique set of core competencies, customer base, coupled with the markets that we already serve, position us well to participate in a meaningful way in this market opportunity. In closing, I appreciate your patience. It's a cramped room. It's been a long morning. We're going to take a break. I'd suggest that as you sit here today, the information and data presented might seem overwhelming and sometimes even complicated. However, I'd offer to you that the one TETRA 2030 vision is really quite simple. Again, focus on service, technology, saltwater chemistry.
That's how we're applying it into all these opportunities. That's the basis for what the company is paid for today and the basis for what we're going to be paid more for in the future. Okay? Thank you.