Article courtesy of Justin Doom | November 5, 2014 | Bloomberg | Shared as educational material
U.S. hydraulic-fracturing companies may triple spending on wastewater treatment and reuse over the next six years as drought in the West threatens supplies and regulators enact stricter waste measures.
Spending may increase to $357 million in 2020 from $138 million this year, according to a report today from Boston-based Bluefield Research. The industry is expected to spend a total of almost $6.4 billion in 2014 on water management, including treatment, supply, transport and storage.
Fracking companies also are expected to double the amount of water that’s treated and reused to about 27 percent of total produced and flowback water in 2020 from 14 percent now.
That will create an opportunity for companies that offer treatment services and systems.
“We are going to see firms with advanced water-treatment technologies competing for business against diesel trucks over the next few years,” Erin Bonney Casey, a Bluefield analyst, said in a statement. “Even though water treatment and reuse costs have proven to be nearly 15 percent lower than trucking and disposal in some cases, fracking companies have yet to fully embrace treatment.”