Like Oil and Water in the American West: Water Market Access amid Unconventional Oil Production in Colorado

Abstract

Characterized as a “wicked” problem, water shortage in the American West will soon become a reality—due to increasing population, climate change, and decreased flows. Concurrently, water‐centered technologies such as hydraulic fracturing and directional drilling have facilitated the rapid and widespread growth of unconventional oil and gas (UOG) production in the United States. Water markets are increasingly touted as the best, most efficient, and fairest mechanisms for allocating vital and scarce resources. Yet this contention is largely unexplored at the food‐energy‐water nexus, particularly from an environmental justice perspective—where equitable water access for all users is a central concern. We utilize a case study in Colorado's South Platte basin based on 41 in‐depth interviews to show: (1) distortions created in regional water markets as wealthy UOG operators participate in them and (2) ways in which access to water markets becomes blocked for smaller, newer, or water‐poor water users. We also highlight how UOG producers’ presence may inhibit the formation of alternative systems for water exchange. Thus, the participation of UOG operators in Colorado's water markets appears to drive environmental injustice and increased inequity at the food‐energy‐water nexus, rather than facilitating fair or efficient access to water for all users.