Fracking 101 for Investors: Profiting from the Water Problem Photo credit: Flickr/Andrea
May 17, 2015
Fracking 101 for Investors: Profiting from the Water Problem
Photo credit: Flickr/Andrea
Fracking 101
The average shale well in the U.S. requires 3-5
million gallons of water to hydraulically fracture.
Fracking 101
Add up all the shale wells drilled across America
each year…
Fracking 101
…and we’re talking about billions of gallons of
water.
Fracking 101
…and we’re talking about billions of gallons of
water.
Photo credit: Flickr/Alex
Fracking 101
An added issue (and opportunity) arises from the fact that not all that
water stays underground.
Fracking 101
According to Halliburton 3-5 barrels of water are
produced for every 1 barrel of hydrocarbons.
Fracking 101
This costs the industry $51 billion per year to manage
this water.
Fracking 101
This costs the industry $51 billion per year to manage
this water. Photo credit: Flickr/zack Mccarthy
Fracking 101
That produced water problem, however, can
become a solution to the freshwater usage problem through water recycling.
Fracking 101
This is one reason why Halliburton’s goal for 2014
is to reduce freshwater usage by 25% by recycling
more produced water.
Fracking 101
To reach that goal it’s teaming up with Nuverra Environmental Solutions
in a recycling solution called H2O Froward.
Fracking 101
Let’s take a closer look at these two companies and the profit opportunities
offered to investors.
Profit Opportunity No. 1:
Nuverra Environmental Solutions (NYSE: NES) is a full-cycle environmental solutions provider.
Source: Nuverra Environmental Solutions website
Nuverra Environmental Solutions
Source: Nuverra Environmental Solutions Investor Presentation
Nuverra Environmental Solutions Leading positions in the Bakken,
Marcellus/Utica and Haynesville shales. Working with Halliburton on H2O Forward in the
Bakken as well as an environmental treatment center.
Appalachian Water Services wastewater treatment facility in the Marcellus Shale area.
Nuverra Environmental Solutions Growing positions in the Mid-Continent Region
as well as in the Eagle Ford Shale and the Permian Basin.
Looking to build its next waste treatment facility in the Eagle Ford Shale.
Plan is to replicate its Bakken assets across all major shale plays.
Profit Opportunity No. 2:
Halliburton (NYSE: HAL) is one of the world’s leading oil-field service companies.
Halliburton CleanStream System
Halliburton Pioneering the H2O Forward Service with
Nuverra. It will increase the amount of produced water
reused in frac fluids. Reduce volume of water sent down disposal
wells. Reduce truck volumes. Turns the waste stream of produced water into
the solution for providing water for fracking.
Investor takeaway Halliburton and Nuverra Environmental
Solutions offer investors a compelling combination to profit from the energy industry’s water problem.
Photo credit: Flickr/Andrew Magill