US gas giant
Chesapeake Energy Corporation
) is planning to develop a 100% green mixture of fluids for
fracturing oil and gas formations underground. In line with this
move, it is experimenting with hydraulic-fracturing fluids prepared
entirely from eco-friendly materials in wells.
CHESAPEAKE ENGY (CHK): Free Stock Analysis
HALLIBURTON CO (HAL): Free Stock Analysis
To read this article on Zacks.com click here.
According to management, the current frac fluid formulations
frequently contain risky components like hydrochloric acid or
diesel fuel. Environmentalists believe that these components create
a threat to water supplies.
Chesapeake is analyzing numerous environment friendly methods in
several shale formations. The details of these shale formations
have not been disclosed. The company is apprehensive of the fact
that drilling a well costs about $4 million to $6 million.
Meanwhile, if an untested frac system is pushed down a well it
would damage the reservoir, resulting in wastage of resources.
Therefore, Chesapeake is testing the green fracking fluids to
curtail threats from surface leak of drilling sites close to lakes,
creeks and rivers. It would also help in reducing workers' contact
with potentially dangerous substances.
Chesapeake is not the only company, which is working on means of
providing more environment friendly fluids. The world's largest
) also offers CleanStim. This is effective in suppressing the
growth of subterranean bacteria that can create a thick slime and
hinder oil and gas flow.
Another process developed by Halliburton uses ultraviolet light
that destroys bacteria in the fracking fluid, combining the
technology with a recycling process called CleanWave that uses an
electrical charge to detach contaminants and clean the water.
The efforts by Chesapeake will go a long way in helping the company
to grow in the rising environment friendly surroundings.
Chesapeake carries a Zacks #3 Rank, which is equivalent to a Hold
rating for a period of one to three months. Longer term, we
maintain our Neutral recommendation.