Anyone ever hear of "The Caldera Effect"??

I bet there is a fear of this oil coming out so fast that this reserve may be damaged for good. scary thought.

The reason water is injected into some oil reservoirs is to waterflood the formation and increase ultimate recovery. Waterflooding is classified as secondary recovery in that it often is initiated long after the reservoir has declined to increase oil production. It is often used on solution gas drive reservoirs. Some reservoirs have water injected from the beginning of primary production to keep the bubble point higher and to produce a higher volume of the original oil in place more quickly. I believe Ghawar in Saudi Arabia has been waterflooded for decades now in this manner. I've never worked extremely unconsolidated formations so I really can't elaborate on your "Caldera" effect.