On-Site Water Recycling Could Be Game-Changer for Shale Drillers

From The Motley Fool:
With H2O Forward, the produced water is recycled on site, which enables oil and gas producers to use substantially less fresh water. That's a real game-changer for the industry, but it also poses a competitive threat to Nuverra, which is building a business around treating and recycling fracked water offsite. 
In the deal, both companies will work together to offer the H2O Forward Service to oil and gas companies working to develop the Bakken. Once a customer signs on to the service, Halliburton will conduct the fracking operations while Nuverra will provide the logistics, transportation, storage, and overall fluids management. If successful, the project could provide additional opportunities for both companies as H2O Forward moves to additional shale plays.
In addition, the process could really vault Halliburton past industry peers Schlumberger(NYSE: SLB  ) and Baker Hughes (NYSE: BHI  ) . All three companies have been looking overseas for growth as rig counts in the U.S. have been on the decline. Just last quarter, U.S. rig counts dropped by 3%, which helped cause Halliburton's revenue to dip by 1%. However, if H2O Forward works as planned it could help Halliburton take additional market share from its competitors in the U.S., enabling it to do well even if rig counts continue to drop. Also, the company could begin to offer the solution overseas, which would help maintain its industry-leading growth. 
There is good reason to be optimistic that this venture will be a success because early tests looked great. In a 94-well test program using Halliburton's full service system with recycling, the company saved 94,752,000 gallons of fresh water, which also removed the effect of 125,000 round-trips for trucks. The test saved producers about $3.26 million, which shows that going green can be a money-saving venture. 
Read the entire article here.

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