Halliburton Company (HAL) Moves Forward to Keep Water Clean

Page 1 of 2

Halliburton CompanyOil-field services company Halliburton Company (NYSE:HAL) has inked an important deal with environmental solution provider Nuverra Environmental Solutions Inc (NYSE:NES) to advance its water treatment and recycling solution. The service, which is called H2O Forward, has the potential to be a real game-changer for the industry, as well as pose a significant competitive risk to Nuverra Environmental Solutions Inc (NYSE:NES). But, with these two now joining forces, everyone wins.

Photo Credit: Flickr/Laszlo Ilyes

Water usage is a well-documented problem for the oil and gas industry; each well that’s fracked requires millions of gallons of water. One of the biggest issues with the process is that some of the water that is pumped down in the well eventually comes back up, along with harmful chemicals. That water then needs to be disposed of in an environmentally responsible manner, which typically involves it being trucked away so that it can be pumped down into a disposal well. It’s not an ideal solution, which is compounded by the fact that oil and gas producers still need access to fresh water to frack the next well.

These are some of the many reasons why the fracking process has so many enemies, which has led to its outright ban in places like New York state and France. Further, the millions of gallons of water required to frack each well makes it difficult to use the process in more arid climates. If the team of Halliburton Company (NYSE:HAL) and Nuverra Environmental Solutions Inc (NYSE:NES) can find success with this project, it could make fracking a more palpable option for many opposed to the process.

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 Company (NYSE:HAL) 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 Company (NYSE:HAL) past industry peers Schlumberger Limited. (NYSE:SLB) and Baker Hughes Incorporated (NYSE:BHI).

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!