i think some people panic when they hear water and oil in the...

i think some people panic when they hear water and oil in the same sentence. 95% of oil wells in America have over 10% water cut.

http://www.saudi-us-relations.org/energy/saudi-energy-saleri.html
(discussing one of Saudi Arabia's biggest fields)
Let us look at the water. What's happening with water? What's happening with water is that water production is extremely stable over the last five years. The total water cut is 36 percent. For those who don't know what water cut means, it's percentage of the total fluid that comes through the surface which is water. Water comes with oil. The more water you product the heavier it becomes and it becomes relatively more expensive.

But again, to put you in perspective at this state of maturity that I'm going to show, producing 36 percent water cut is phenomenal by industry standards. Most of the IOCs produce at much much higher water cuts. 70 percent, 80 percent, 90 percent. Russia, we were talking about Russia, produces over 80 percent water cut. So here is Ain Dar/ Shedgum producing at 36 percent water cut after 50 years.