Among findings: companies must scrutinize water management in economics
Volatile energy markets and the reluctance to cut production in Doha, signaling sustained low oil prices, continue to reshape water services and strategies for the energy industry.
Decision-makers in companies across the industry value chain, including water service pure-players (GreenHunter Resources, Nuverra), exploration companies (Sandridge), and state-owned entities (PEMEX), are being forced to confront this new paradigm.
Bluefield Research analyzed the impact of recent energy market developments on the water sector by addressing several questions:
- How is the slowdown in shale exploration impacting produced water volumes and reuse?
- What effect will low oil prices have on water management spending?
- How are companies in the U.S. and abroad adopting their strategies in this new energy landscape?
- The decline in oil prices drove a $900 million reduction in total water management spending from fracking from 2014 to 2015.
- The upstream industry shakeout is forcing companies to scrutinize water management in economics, providing a long-sought-out opportunity for water solution providers in the 6 billion oil and gas industry.
- PEMEX inked a deal on Nov. 30, 2015 to invest $800 million in water treatment infrastructure projects.