One of the biggest economic stories of the next decade will likely be the fact that America will be producing more oil and natural gas that any country in the world by 2020.
The country is now dotted with large swaths of energy deposits that are being developed.
Much of this boom has been made possible through new fracking techniques. But these techniques are at the center of a firestorm regarding the environmental safety and the impact it can have on local ecosystems.
Furthermore, fracking requires enormous amounts of water. Chesapeake Energy Corporation (NYSE:CHK) recently estimated that every new well it drilled would require 5 million gallons of water – and because of that, energy prices would likely be staying high for the foreseeable future.
Even if our appetite for fossil fuels levels off, these wells are likely going to be drilled to meet demand over the years. In addition, safety regulations imposed by the government will likely tighten, and the amount of water used will remain high.
That’s where Heckmann Corporation (NYSE:HEK) – with its tiny market cap below $1 billion – comes in. Over the past couple years, through a combination of capital spending and strategic acquisitions, Heckmann has positioned itself as the company that will help meet the environmental and water needs of the energy industry.
Image: Chesapeake Energy Corporation (NYSE:CHK)
Just as the real winners of the gold rush were those selling axes and blue jeans, Heckmann Corporation (NYSE:HEK) could profit not by extracting energy, but by being the only player equipped to handle water from start to finish.
To understand what the company does, check out this slide from a recent presentation.
The company has quietly built out an infrastructure of trucks, tanks, railcars and pipelines to deliver and collect the massive amounts of water energy extracting companies need.