Last month I found myself an unwilling participant in a heated argument between opposing sides of the hydraulic fracturing debate, a story that’s been played out on the media stage for years — and especially since 2008.
The opponents: a protester, his placard touting the latest anti-fracking slogan, and an employee of a company drilling in the U.S. oil patch.
The last place I wanted to be that morning was standing between the two. There was certainly no shortage of animosity as they stared each other down.
I, for one, understand both sides of this fight…
Two Sides of the Fracking Coin
On the one hand, it’s impossible to ignore the benefits that come as a result of developing our tight oil and gas resources.
Pennsylvania made about $3.5 billion in revenue from the Marcellus during 2011. Drillers produced more than a trillion cubic feet of natural gas from the formation.
Just south in West Virginia, production came out to about $1.2 billion — and 350 billion cubic feet.
North Dakota virtually sidestepped the entire recession: Unemployment in the state is a paltry 3.3%. And that’s not all they’re enjoying as a result of their drilling success…
Truth is this good news for the U.S. oil and gas industry couldn’t have come at a better time.
But it would be naive to think this shale boom has come without a cost.
Rumblings over the hidden cost of the shale boom started last year in our largest oil-producing state, Texas.
We told you last week that more rigs are drilling into the Eagle Ford formation than the entire state of North Dakota…
One of the biggest problems revolves around the amount of water used to fracture the rock formation. Between three and seven million gallons of water are needed for each well.
When water supplies become scarce (which happened in Texas last summer after a particularly long dry spell), it becomes cause for concern.
In 2010, Texas drillers used more than 13.5 billion gallons of water to hydraulically fracture their wells.
What will happen when that number doubles to 27 billion gallons in 2020?
Seems this problem would make a waterless fracturing technology immensely valuable…
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Find the Solution, Find the Profits
Between the United States and Canada, some 2,400 oil and gas rigs are running. And practically all of these new wells need to be fractured…
Hydraulic fracturing is seen as the necessary evil to our domestic oil and gas boom. Without it, we could completely wipe any new oil off the books.
Over the last four years, the U.S. has successfully added more than 700,000 bbls/d to production totals. Fully one-third of that increase comes right out of the Bakken.
This, my friends, is where the opportunity is opening up for us…
If you’re not interested in investing in the problem, you can easily make a fortune with the solution.
Imagine what would happen if we were able to remove water from the fracturing equation completely: no more water shortage concerns, no more ‘fracking fluid’ chemicals that have been vilified by the public media, and no more wastewater ponds.
The very possibility might be enough to make protestors slugging it out over hydraulic fracturing shake hands and call it a day…
For the last few months, I’ve been telling you why technological breakthroughs in drilling and completion techniques will be more profitable than ever before.
I’ve found a company with a cutting-edge fracking technology that’s taking the sector by storm.
The first time I crossed paths with this small company wasn’t even on U.S. soil…
They were too busy perfecting their technology in Canada.
The fact that they’ve set up shop in the lower 48 states could signal the end of the fracturing debate altogether.
Then again, it wouldn’t be much of an opportunity if the rest of the investment herd knew about it…
But this new player is still flying under Wall Street’s radar.
Next week, I’ll fill you in on all the details.
Until next time,
Keith Kohl
Check us out on YouTube!A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.
For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.
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