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This is What Happens When the Market Crashes and You Need to Innovate

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Hydraulic fracturing pumps

Hydraulic fracturing pumps

A market crash has a way of focusing the mind. The 2014-2015 crash in oil prices, for example, forced unconventional oil and gas producers (Frackers) to improve their water management programs. “The predominant overarching trend in the industry is still dominated by ways to reduce the total spend on water—whether through recycling or sourcing water for lower cost,” said Devesh Mittal, vice president and general manager of Aquatech’s Shale Gas Division. Jeff Gunderson writes at Industrial WaterWorld:

According to Wastewater Treatment Technologies in Natural Gas Hydraulic Fracturing, a report by Navigant Research examining the market for hydraulic fracturing wastewater treatment and recycle systems including deep-well injection, a greater emphasis is emerging on water protection through regulations and public efforts. This trend is expected to influence water sourcing and disposal and will increasingly emphasize treatment and recycling of flowback and produced water over deep-well injection, the report found.

“The market for hydraulic fracturing wastewater treatment is certainly going to grow over the next decade, gradually replacing deep-well injection,” said Anne Wrobetz, research analyst with Navigant Research. “This market will grow primarily in the United States and Canada because of regulatory pressure and because of large shale gas reserves.”

Devesh Mittal, vice president and general manager of Aquatech’s Shale Gas Division, said water management strategies are focused on storage, filtration, metals treatment, and sourcing water across producers. While states are introducing regulations to monitor deep-well injection and to promote recycling of produced and flowback water, the market for water treatment is still slow to bounce back from the downturn. “The number of rigs deployed is constantly rising, but water treatment services demand is picking up slower than rig counts,” he said.

Read more here.

 

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E.J. Smith

Editor-in-Chief
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com.