What do you think about this article...
"Companies such as Heckmann Corporation (HEK), who derive the majority of their business from hauling produced water off-site, look to be the most likely to lose business as the natural progression from off-site disposal to on-site reuse takes hold. Larger companies, perhaps sensing the shifting landscape, have begun to move to recycling their produced water. In fact, Chesapeake Energy (CHK), a leading natural gas producer, now recycles all of the water it recovers from its wells according to this recent article from the WSJ titled Drillers Begin Reusing 'Frack Water.' ....
The majority of current treatments involve a significant usage of electricity, chemicals, or both. Until recently, the cost of on-site treatment was higher than that of off-site disposal. With the tide clearly turning in favor of on-site treatment due to lower costs, oilfield service companies and producers will be looking to use the products that save the most money and are the most environmentally friendly."
I've always worried about this eventuality, but I'm hoping that HEK is way out-front of others in recycling as well as hauling and can make the tranisition fairly seamlessly. That said, if I were them I'd hold off on any further capex for more trucks and injection wells. I'm trusting that HEK can sniff out the most viable on-site recycling processes and perhaps do some acquiring in that area. I'm counting on HEK management to be in the vanguard here; hoping they have their finger on this pulse. Hope that trust isn't misplaced.
That movie was totally bogus. The flames coming from the tap were for real, but YEARS before fracking. Coming from underground methane. Complete liberal smear, but this should be well known by now. Most people will believe what they want to believe, regardless of the facts.
Sentiment: Strong Buy