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?
Key Takeaways:
- 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.
Source: Bluefield Research
