Halliburton Company (HAL) Moves Forward to Keep Water Clean

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 Company (NYSE:HAL)’s revenue to dip by 1%. However, if H2O Forward works as planned it could help Halliburton Company (NYSE:HAL) 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.

This is why partnering with Halliburton makes a lot of sense for Nuverra — it helps to mitigate the risk of this lost business. Together, these two should be able to deliver the net economic benefit that oil and gas producers are looking for to satisfy investors. Additionally, both companies are moving forward with what should be a significant benefit to the environment because the service will cut down on truck traffic as well as the industry’s freshwater usage. Widespread adoption of the service should go a long way in helping to make fracking a more palpable solution for those that worry about its environmental risks.

The article Halliburton Moves Forward to Keep Water Clean originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo owns shares of Nuverra Environmental Solutions. The Motley Fool recommends Halliburton. The Motley Fool owns shares of Nuverra Environmental Solutions and has the following options: long January 01 2014 $4 calls on Nuverra Environmental Solutions and short January 01 2014 $3 puts on Nuverra Environmental Solutions.

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