Ambient Water Comments on Impact of Falling Oil Prices Across Oil and Gas Industry
Drop in Prices Could Force Oil and Gas Companies to Look for Ways to Cut Expenses; Water Becoming an Expensive Resource, Particularly in Areas of Water Scarcity
SPOKANE, WA--(Marketwired - Jan 13, 2015) - Ambient Water (OTCQB: AWGI), a leading provider of atmospheric water generation systems for extracting water from humidity in the air, today commented on the recent falling prices of oil and the resulting ripple effect that could be felt throughout the oil and gas industry should the market not immediately rebound.
Oil prices fell below $50 a barrel last week, the latest milestone in a severe decline that has seen oil's price per barrel fall by 50 percent since June of 2014. Prices have not been this low since 2008-2009 and have led to many of America's largest drillers to announce layoffs and investment cuts as they look for ways to decrease operating costs. One such area that could be considered is that of trucking/piping in source water for fracking hydraulic wells.
"We haven't seen prices this low for a barrel of oil in quite some time so naturally as price goes down, drillers will need to find a way to decrease manufacturing costs in order to offset the revenue they are losing. It can be extremely costly to bring water to a hydraulic fracking site, but fortunately there are cost effective alternatives, like atmospheric water generation, that could serve the industry well," said Keith White, Founder and CEO of Ambient Water.
This is especially crucial for areas already battling water scarcity, like Texas, according to a recent study by Texas A&M University. The study reports that it can require roughly five million gallons of water to frack each well in Texas, a stressful demand given the growing population's own water needs. The study also reported that within the Eagle Ford Shale, located in South Texas, groundwater aquifers are currently overdrawn annually at 2.5 times the recharge rate.
"Water is an expensive resource for the oil and gas industry, especially when operating in areas like Texas where there is a premium because it is already so scarce. When you have to have it brought in to the site, you're adding trucks, storage, and labor, so costs can soar into the millions, only to be repeated for each well," continued White. "Ambient Water's atmospheric water generation technology provides oil and gas companies with a virtually endless source of water on site. This results in a dual benefit of decreased costs for oil companies, and reduces the strain on water supplies in the surrounding communities."
One Pennsylvania company gave a cost analysis of roughly $2.9 million for 5.7 million gallons of water, its delivery, and temporary plastic and felt for the surface of the well pad. This cost does not include piping or on-site storage, or water removal.
Ambient Water's patented atmospheric water generation technology literally makes water out of thin air, transforming humidity into an abundant source of clean water near the point of use. With multiple systems already commercially available or in development, the Company's technology produces clean and fresh water for a host of commercial industries including process water for hydraulic fracking in the oil and gas industry and agriculture, while also providing fresh drinking water for homes, offices, and communities.
About Ambient Water, Corp. Ambient Water pioneered atmospheric water generation technology for extracting water from humidity in the air. Drawing from the renewable ocean of water vapor in the air that we breathe, the Company's patented technology cost-effectively transforms humidity into an abundant source of clean water near the point of use. The scalable and modular systems can be configured for a number of water-sensitive applications ranging from oil and gas exploration to vertical farming. The systems can also be configured to produce high quality drinking water for homes, offices, and communities. For a thirsty planet on the verge of a water crisis, Ambient Water makes clean water out of thin air. To learn more about Ambient Water, visit our website at http://www.AmbientWater.com.
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