Getting water to wells is a critical part of the hydraulic fracturing and horizontal drilling industry. Both water and wastewater disposal are core elements for drilling or the whole site will shut down, costing thousands of dollars each day. Water isn’t the expensive element but when it isn’t available, it will hurt the operational budget.
Most of the drill sites are remote and there is not an abundance of water. Even with local sources available for regular oil and gas production, hydraulic fracturing is a more intense operation with needs for high volumes in short time frames. As the price of oil continues to remain low, water costs are being examined. What if water could be brokered to the drill sites when necessary, similar to the relationship between Expedia and travelers? This is where Sourcewater comes into the picture.
Established in 2014, Sourcewater CEO and creator, Josh Adler, wants to provide services to the oil and gas industry that will improve productivity and lower costs. The company will receive a fee to bring together the buyers and sellers. Adler told Oilman that Sourcewater will match companies who need to find water for hydraulic fracturing as well as those who want to reuse the water produced during energy extraction. From trucking to treatment, storage and disposal, Sourcewater will match them with those in the local area. Providers will post on the website and connect with those in the area who need their services.
Oklahoma City and Texas are being targeted as future markets for this service. As seismic activity increases in these areas, the disposal concerns are rising but through more effective recycling of the water, the pressure on the current and future disposal wells will decrease. As oil prices continue to stay low, more companies will be looking to reduce costs and downtime.
Oil and gas companies are regularly faced with many industry-specific issues to overcome. Such issues, including exploration and drilling, are often complex and intricate processes with many unique challenges to overcome. Data analytics can play a massive part in streamlining some of the most fundamental operations that are involved in the oil and gas industry.