Water for U.S. Hydraulic Fracturing: Competitive Strategies, Solutions, & Outlook, 2014-2020

Source: Joshua Doubeck
MARKET'INSIGHT!
Water'for'U.S.'Hydraulic'Fracturing:'Compe''ve!
Strategies,!Solu'ons,!&!Outlook,!2014;2020!!
!
November!2014!
ADVANCED WATER TREATMENT & DESALINATION
GREENFIELD + WATER = BLUEFIELD

Water for U.S. Hydraulic Fracturing: Competitive Strategies, Solutions, & Outlook, 2014-2020 ! MARKET INSIGHT!
About This Market Insight
2
• This Market Insight highlights the following:
- A 2014–2020 forecast of water management spending
by supply, transport, treatment, storage, and disposal at
a play-by-play level.
- Competitive analysis of water management and
technology providers and their strategies to meet the
growing demand for water and water treatment in
unconventional oil & gas.
- Federal and state-by-state analysis of 31 regulatory
environments and emerging markets for water
solutions.
- In-depth analysis of water supply and treatment
solution drivers and bottlenecks by U.S. shale play.
- Analysis and profiles of 18 water management
companies, 26 energy service providers, and 19
technology suppliers and their competitive positioning.
• This report draws on Bluefield Research’s Advanced Water
Treatment & Desalination Insight Service and its ongoing
deliverables and research team.
Oil & Gas Service
Providers
Pure Play Water
Service Providers
Technology &
Equipment Suppliers
• Baker Hughes
• Basic Energy
• Cudd Energy Services
• FTS International
• Halliburton
• Key Energy Services
• Nabors Industries
• National Oilwell Varco
• Newalta Corporation
• Schlumberger
• Secure Energy Services
• Superior (Pumpco)
• Tervita Corporation
• Trican Well Services
• Weatherford
• Advanced Waste
Services
• AES Water Solutions
• American Water
• Aqua America
• Aquatech
• Armada Water
• Bosque Systems
• BNN Energy
• Eureka Resources
• Fountain Quail (Aqua
Pure)
• Greenhunter
• Hydro Recovery
• Nuverra
• Oilfield Water Logistics
• Patriot Water Treatment
• Reserved
Environmental Services
• Rockwater Energy
Solutions
• Select Energy Services
• 212 Resources
• Altela
• BKT
• Ecologix
• Ecosphere
• Energy Water Solutions
• Evoqua
• Exterran
• Gasfrac
• GE Water & Process
Technologies
• Geopure
• Gradiant
• Oasys Water
• Omni Water Solutions
• Purestream Services
• STW Water & Process
Technologies
• Thermo Energy
• Veolia Water Solutions
• Water Rescue Services
Energy
Companies
• Antero Resources
• Apache Corporation
• Crestwood Midstream
Partners
• Devon Energy
• Fasken Oil Ranch
• New Frontier
• NGL Energy Partners
• Penn Virginia Resource
Partners
• Pioneer Natural
Resources
• SandRidge Energy
• Statoil
Market Insight Details
Geographical Coverage
Thirty-one US States, including Key Shale Plays
• Bakken
• Eagle Ford
• Haynesville
• Marcellus
• Niobrara
• Permian
• Utica
• Ohio
• Oklahoma
• Pennsylvania
• South Dakota
• Texas
• West Virginia
• Others
• California
• Colorado
• Florida
• Louisiana
• New Mexico
• North Dakota
• North Carolina

About This Market Insight
Water for U.S. Hydraulic Fracturing Market: Competitive Strategies,
Solutions, & Outlook, 2014-2020 is an in-depth analysis of the rapidly
changing U.S. landscape for fracking water solutions and business
strategies. This Market Insight has been developed to support
companies addressing the US fracking market with detailed data and
market trend analysis.
• Bluefield forecasts define market outlook to 2020. Bluefield’s in-depth
forecasts build on the more than 14,000 newly fracked wells
and 7 billion gallons of produced and flowback water in 2013 to
develop basin-specific outlooks. Key forecast outputs include
water demand, services revenues, and technology investment,
including sensitivities to market drivers. A detailed research
methodology and approach is provided to forecast data and
analysis included with the report.
• Highlighting shifting business strategies in a changing
landscape. From equipment suppliers-to-water service providers,
companies are addressing the industry’s water challenges with
innovative technology and business solutions. Oil & gas players,
pure-play water service companies, and technology providers
across the value chain are refining their business strategies to
capitalize on the scaling market. Bluefield profiles company
strategies with value chain analysis, M&A and partnership impacts,
regional focus, and technology strategies.
• Unlocking greenfield opportunities in fracking. Bluefield
highlights the emerging shifts by basin that it expects to shape
business models and market growth going forward. The deep-dive
analysis of regulatory policies across 31 states, disposal
infrastructure, water availability, and has been developed to
support companies as they navigate a highly fragmented
landscape.
Wastewater Disposal Methods
Oil & gas well operators and water service providers have increased wastewater reuse
applications to represent 68% of the 2.6 million m3 generated in the first-half of 2014.
Water&Solu+ons&for&U.S.&Fracking:&H1 2013-H2 2014-H1
Compe&&2013-ve(Strategies,(H2 2011-H1 2011-H2 2012-H1 2012-H2 2010-Costs,(and(Forecasts,(201492020 ( (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((MARKET(INSIGHT(
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Other 41,055 70,823 3,405 26,338 44,272 4,294 20,494 18,697
Residual Waste Facility - - - - - - 576,218 534,043
Injection Well Disposal 55,471 82,473 271,575 164,754 404,170 221,257 282,365 242,485
Centralized Treatment Plant 561,454 571,386 424,965 262,293 474,417 364,003 10,053 2,174
Wastewater Reuse 205,126 789,965 961,496 1,455,323 1,748,529 1,640,098 1,664,663 1,731,502
Estimated Wastewater Treatment &
Cubic Meters (m3)
Pure-Play Water Service Providers Positioning for Growth
A host of pure-play companies are navigating the fragmented market through
partnership 19.7 22.6 22.4
and geographic 16.9 23.4 2.9 13.5 14.5 Transport Services(US$ million)
growth strategies to carve-out longer-term growth positions
Delivery Collection Treatment Recycling Disposal
Analysis
• Since 2011, wastewater reuse for fracking activities
has increased 119% by volume. Currently reuse
represents 68% of disposal methods in the state.
• The Pennsylvania Department of Environmental
Protection (PADEP) has proven to be effective in
driving reuse. In 2010 the regulatory agency
prohibited discharge of high total dissolved solids
(>500 mg/l) from unconventional gas operations.
• Additionally, in 2011 PADEP disallowed the use of
publicly owned treatment facilities for disposal. As a
result, centralized treatment has fallen from 562,454
m3/d in 2010-H2 to 2,174 m3/d in first-half 2014.
• Injection well disposal has scaled since 2010-H2, with
a significant increase to 404,170 m3/d. The increased
is also driven by the PADEP regulation changes.
• Excluding water supply, wastewater treatment and
transport services have continued to rise with the
industry’s expansion from approximately US$2.9
million in the first-half of 2011 to US$22.4 in 2014.
Wastewater Disposal Methods by Percent of Cubic Meter Volume (M3)
Source: PADEP, Bluefield Research
GreenHunter Resources
Select Energy Services
2013 Revenues
US$25.7M
US$800M (Est.)
US$525M
Select Energy Services
Basins
Marcellus, Utica
Permian, Marcellus, Bakken
Haynesville, Eagle Ford
Marcellus, Bakken
Fountain Quail US$6.1M
Marcellus, Barnett,
Eagle Ford
Rockwater Energy Solutions US$1.3B (Est.)
Marcellus, Barnett,
Eagle Ford, and others
Bosque Systems Privately Held
Barnett Shale, Eagle Ford,
Fayetteville. Bakken, Permian,
Woodford
• GreenHunter has refocused its activities in the Marcellus basin to capitalize on the higher cost of water management,
including transport and disposal. Its proposed and alternative strategy to barge wastewater to treatment facilites is still
pending US Coast Guard approval.
• In 2013, Baker Hughes launched its H2pro water treatment technology solution in the Permian Basin and Halliburton–
through a partnership with Select Energy− is deploying its H2OForward treatment technology in the Bakken and Permian
Basins.
• Other diversified plays companies with Key their Energy substantial Services resources.
and Basic Energy Services represent significant challenges to the pure
3

Table of Contents & List of Exhibits
Section 6 – Market Forecasts
46 Market Forecasts Summary
47 Annual Water Demand by Volume
48 Hydraulic Fracturing Water Services Forecast
49 Hydraulic Fracturing Water Forecast by Volume
50 Hydraulic Fracturing Water Treatment Services Forecast
51 Forecast Methodology
52 Forecast Methodology: Key Inputs
Section 7 – International Market Landscape
54 Summary
55 International Markets by Recoverable Reserves
56 The United Kingdom Emerges Among European Doubts
57 A Global Perspective on Hydraulic Fracturing Opportunities
58 Global Competitive Landscape
Section 8 – Key Hydraulic Fracturing Play Profiles
60 Bakken
61 Denver-Julesburg Niobara
62 Eagle Ford
63 Haynesville
Section 9 – Key Water Service Provider Profiles
68 Advanced Water Services
69 AES Water Solutions
70 American Water
71 Aqua America
72 Aquatech International
73 Armada Water Ltd.
74 Bosque Systems
75 BNN Energy (Tallgrass Energy Partners)
76 Eureka Resources
77 Fountain Quail (Aqua Pure)
78 GreenHunter Resources
4
TABLE OF CONTENTS
Section 1 – Executive Summary
Section 2 – Market Drivers & Landscape
10 Summary
11 Mapping the U.S. Shale Basins and Plays
12 Key U.S. Unconventional Oil & Gas Plays
13 Unconventional Oil & Gas Production
14 Natural Gas and Crude Oil Price Trends
15 Monthly U.S. Rig Count by Type
16 Hydraulically Fractured Wells by State
17 Basin Water Stress & Water Footprint
18 Federal Policy Landscape
19 State and Local Policy Overview
20 State Policy Overview Metrics – Alabama to Nebraska
21 State Policy Overview Metrics – New Jersey to Wyoming
22 Water Treatment & Reuse Market Maturity
23 Pennsylvania Highlights Regulatory & Economic Impacts on Reuse
Section 3 – Hydraulic Fracturing Across the Water Supply Chain
25 Summary
26 Hydraulic Fracturing Water Supply Chain
27 Water Supply Chain Bottlenecks and Drivers for Reuse
28 Water Management Spending by Play
29 Salt Water Disposal Wells by State
30 Shifting Water Roles of Oil & Gas Players
31 Alternative Water Proposals
Section 4 – Hydraulic Fracturing Water Treatment Solutions
33 Summary
34 Water Treatment Technology Solutions
35 Potential Technology Solutions
36 Water Technology Provider Positioning
Section 5 – Water Service Provider Competitive Landscape
38 Summary
39 Unconventional Oil & Gas Opportunities
40 Water Management & Services Value Chain
41 Competitive Benchmarks and Positioning
42 Pure-play Water Service Provider Positioning for Growth
43 Pennsylvania Utilities Position in Local Market
44 Water-related M&A Activity in Hydraulic Fracturing
64 Marcellus
65 Permian
66 Utica
79 Hydro Recovery
80 Layne Christensen
81 Nuverra Environmental Solutions
82 Oilfield Water Logistics
83 Reserved Environmental Services
84 Patrioit Water Treatment
85 Rockwater Energy Solutions
86 Select Energy Services
87 SandRidge Energy
88 Terraqua Resource Management
Water for U.S. Hydraulic Fracturing: Competitive Strategies, Solutions, &
Outlook, 2014-2020 is part of Bluefield’s Advanced Water Treatment &
Desalination Insight Service.
Advanced Water Treatment & Desalination Insight Service provides clients with
a steady stream of in-depth analyses of evolving water treatment markets,
company strategies, demand shifts, and the underlying drivers for greenfield
opportunities. Learn more at www.bluefieldresearch.com.

Table of Contents & List of Exhibits (continued)
5
TABLE OF CONTENTS (continued)
Section 10 – Key Energy Company & Service Provider Profiles
90
Baker Hughes
91 Basic Energy Services
92 C&J Energy Services (Nabors)
93 Cudd Energy Services (RPC)
94 FTS International
95 Key Energy Services
96 Halliburton Co.
97 National Oillwell Varco
Section 11 – Key Technology Provider Profiles
107 212 Resources
107
Altela
107 Aquatech
107
BKT
108 Ecologix
108
Ecosphere
108 Energy Water Solutions
108
Evoqua
108 Exterran Holdings
108
GE Power & Water
LIST OF EXHIBITS
Section 2 – Market Drivers & Landscape
11 U.S. Lower 48 States Shale Plays & Basins
12 Average Water Demand per Well
12
Fossil Fuel Mix by Key Play
13 Total Gas Production by Play
13
Total Oil Production by Play
14
Natural Gas Futures Contracts, 2000–2014
14
Crude Oil Futures Contracts, Cushing, Oklahoma, 2000–2014
15
Drill Rig Deployment by Type
15
Average Monthly Rig Count in Key U.S. Shale Plays
16
Installed Well Capacity by State, 2005–2013
17
Water Stress & Reuse by Play
17
Water Supplies and Wastewater by Play
18
Federal Policies & Exemptions
18
Proposed Federal Regulation
19 State Policy Mechanisms
22 Hydraulic Fracturing Market Maturity Curve by Play
23 Pennsylvania Disposal Methods by Volume
98
Newalta Corporation
99 NGL Energy Partners
100 Schlumberger Ltd.
101 Secure Energy Services
102 Superior Energy Services (Pumpco)
103 Tervita Corporation
104 Trican Well Service, Ltd.
105 Weatherford International Services
109
Gasfrac
109 GeoPure HydroTEchnologies
109
Gradiant Corp.
109
Oasys Water
109
Omni Water Solutions
110
OriginOil
110
Purestream Services
110
ThermoEnergy
110
Veolia Water
110
Water Rescue Services
LIST OF EXHIBITS (continued)
Section 3 – Hydraulic Fracturing Across the Water Supply Chain
26 Spending on Water Across the Supply Chain
27 Supply Chain Pressure Points
27 Water Management Spending Flow Chart
28 Water Management Spending Ranges by Play
29 Total Number of U.S. Class II SWD Injection Wells
29 Active Class II SWD Disposal Wells
29 Defining Class II Injection Wells
30 Water Recycling and Pipeline Activities
31 GreenHunter Assets and Proposed Barging Plans
Section 4 – Hydraulic Fracturing Water Treatment Solutions
34 Technology Cost & TDS by Play
35 Technology Profiles
36 Technology Suppliers and Technology Offerings
Section 5 – Water Service Provider Competitive Landscape
39 Unconventional Oil & Gas Business Models and Strategies
40 Value Chain Positioning by Company
41 Water Service Provider Geographic Presence and Integration
42 Pure-play Water Service Provider Positioning
43 Pennsylvania Produced Wastewater by County, 2010–2014
43 Aqua America Pipeline Details
44 Select Water-related M&A Deals by Company
Section 6 – Market Forecasts
47 Annual Water Demand by Play
48 Water Management & Services Spending by Activity, 2014–2020
49 Annual Produced Water & Treatment Ratio (%), 2014–2020
49 Water Treatment Forecast by Volume, 2014–2020
50 Water Treatment Spending by Play, 2014–2020
51 Forecast Methodology Table
52 Data Inputs for Forecasts
Section 7 – International Market Landscape
55 Recoverable Shale Gas Reserves
55
Recoverable Shale Oil Reserves
56 UK Shale Reserves & Utility Map
56
Europe Shale Reserves
57 International Market Background
58 Water Service Providers International Footprint

Order Form
SELECT REPORT LICENSE!
SINGLE SITE LICENSE!
US$2200 ! !!
ENTERPRISE LICENSE!
US$3100 ! !!
PAYMENT METHOD! CREDIT CARD! INVOICE / PURCHASE ORDER!
NAME AS APPEARS ON CREDIT CARD __________________________________________________________!
CREDIT CARD NUMBER ___________________________________________________________________!
CVV CODE ____________________________________EXPIRATION DATE ___________________________! !
TOTAL CHARGE (US$) _________________! SIGNATURE __________________________________________!
BILLING ADDRESS!
FIRST NAME _____________________________!
LAST NAME ________________________________________!
COMPANY ____________________________________!
COUNTRY ___________________________________!
STREET ADDRESS ______________________________________________________________________________!
CITY ___________________________________! POSTAL CODE ____________________________________!
EMAIL ___________________________________ _ _ _ _ ! PHONE ______________________________________!
SIGNATURE _______________________________ _ _ _ _ _ ! DATE _____________________________________!
Water for U.S. Hydraulic Fracturing:
Competitive Strategies, Solutions, &
Outlook, 2014-2020
Publication Date: November 2014
This Market Insight highlights the following:
• A 2014–2020 forecast of water management
spending by supply, transport, treatment,
storage, and disposal at a play-by-play level.
• Competitive analysis of water management
and technology providers and their
strategies to meet the growing demand for
water and water treatment in unconventional
oil & gas.
• Federal and state-by-state analysis of 31
regulatory environments and emerging
markets for water solutions.
• In-depth analysis of water supply and
treatment solution drivers and bottlenecks by
U.S. shale play.
• Analysis and profiles of 18 water
management companies, 26 energy service
providers, and 19 technology suppliers and
their competitive positioning.
Complete the order form to the right
and fax or email a scanned copy to
Bluefield Research at +1 617 249 2082,
or sales@bluefieldresearch.com.
REPORT PRICE
US$2500
6

Bluefield Research offers a range of market insight programs to support client strategies in all segments of the water industry.
Clients can select a single program or combine programs to support single business units or corporate-wide initiatives.
PRACTICE AREAS
Water Infrastructure
Markets
Private Water
Investment & Portfolio
Strategies
Water Asset
Management &
Utility Strategies
Regional Water
Markets
How to Purchase
INSIGHT PROGRAMS
Municipal Water
Infrastructure Markets
Water Risk Management Strategies
Annual subscription contracts provide clients a 12-month cycle of deliverables, including in-depth
reports, market insights, data analysis, quarterly briefings, research notes, and analyst support
For clients looking for off-the-shelf research to meet specific needs, we offer selected INSIGHT
deliverables for direct purchase, including in-depth Focus Reports and Market Insights
Our team of water industry experts can tailor specific research and analysis to assist clients with
market sizing, competitive analysis, partnering, market access, and strategy support
INSIGHT PROGRAMS
KNOWLEDGE CENTER
CUSTOM RESEARCH
Advanced Water
Treatment & Desalination
Private Water: Strategies and
Opportunities in Water Asset Ownership
Smart Water Markets
and Strategies
Asia-Pacific Water
Infrastructure
Markets
Industrial Water
Infrastructure Markets
Utility Asset
Management
Strategies
Smart Cities
US Water
Infrastructure
Markets
LATAM Water
Infrastructure
Markets
MENA Water
Infrastructure
Markets
Europe Water
Infrastructure
Markets
Agriculture Water
Management
Strategies
Bluefield Research Insight Services
7

Insight Service Description
INSIGHT SERVICE
CLIENT FOCUS: This Insight Service is designed for companies involved in
the supply, purchase or integration of water and wastewater treatment
technologies, including:
• Municipal and water utilities tracking new players and technologies
• Business development and strategy executives at manufacturers and
integrators of water and wastewater treatment systems, components
• EPC and water project developers seeking new supply relationships or
strategic or vertical partnerships
• Large industrial water users searching for optimal supply solutions
• Investors targeting new business models in water treatment and re-use
RESEARCH COVERAGE: a 12-month cycle of data- and analytics-driven
research provided in multiple formats to support client strategies, covering:
• Desalination market trends including new projects, emerging brackish
water applications, and cost drivers
• Growth of water and wastewater treatment markets by segment
(membrane, chemical, thermal, etc), by vertical market, and by region
• Water re-use strategies and market acceptance by sector
• In-depth insight into industrial treatment markets including mining, oil &
gas, fracking, power, agriculture, and manufacturing
• Technology trends in materials, processes, and energy efficiency
• Supplier rankings and market share by segment and region
• Supply chain shifts and tracking of new entrants
METRICS: primary research and analysis is supported by proprietary market,
project and company databases updated continuously:
• WT, WWT and desalination project databases (technology, supplier)
• EPC and equipment supplier databases
• Industrial segment project databases (mining, O&G, power, etc)
• Rigorous market forecasts detailing models, assumptions, and detailed
scenarios
WATER SOLUTIONS COVERED:
Business
Models
Cost
Drivers
M&A
Activity
Regulatory
Activity
Market
Share
MARKET SEGMENTS COVERED:
Industrial Water
Municipal Water
• Power Gen
• Oil & Gas
• Mining
• Chemicals
• Food & Beverage
Water Reuse
Water
Treatment
Wastewater
Treatment
Desalination
Agriculture
SELECT LIST OF COMPANIES COVERED:
8

About Bluefield Research
Global companies across the value chain are
developing strategies to capitalize on greenfield
opportunities in water -- new build, new business
models, and private investment. Bluefield Research
supports a growing roster of companies across key
technology segments and industry verticals addressing
risks and opportunities in the new water landscape.
Companies are turning to Bluefield for in-depth,
actionable intelligence into the water sector and the
sector's impacts on key industries. The insights draw
on primary research from the water, energy, power,
mining, agriculture, financial sectors and their
respective supply chains.
Bluefield works with key decision-makers at utilities,
project development companies, independent water
and power providers, EPC companies, technology
suppliers, manufacturers, and investment firms, giving
them tools to define and execute strategies.
© 2014 BLUEFIELD RESEARCH, LLC.
Contact Bluefield Research
NORTH AMERICA
34 Farnsworth St // Floor 3
Boston, MA 02210
T +1 617 963 5114
EUROPE
C/de Santa Eulàlia 5-9 // 3a
08012 Barcelona Spain
T +34 617 464 999
sales@bluefieldresearch.com
www.bluefieldresearch.com
WWW.BLUEFIELDRESEARCH.COM
GREENFIELD + WATER = BLUEFIELD

Water for U.S. Hydraulic Fracturing: Competitive Strategies, Solutions, & Outlook, 2014-2020

Recommended

Recommended

More Related Content

Viewers also liked

Viewers also liked (19)

Recently uploaded

Recently uploaded (20)

Water for U.S. Hydraulic Fracturing: Competitive Strategies, Solutions, & Outlook, 2014-2020