According to the head of water management of major oilfield
), the company managed to increase its savings to a great extent
in 2012 by using recycled water for fracking additional wells.
For extracting oil and gas, Halliburton employs hydraulic
fracturing (or fracking) - a process of opening fissures forcibly
in subterranean rocks by injecting liquid at a very high
While recycling, Halliburton altered the chemistry of the water
by separating rock debris and chemicals from the liquid. The
recycled water was reused for fracking additional wells instead
of using fresh water, thereby reducing its operating cost
Halliburton management revealed that the use of recycled water in
place of fresh water for fracking wells in the Bakken field in
North Dakota has increased its savings significantly from $6,000
a well in 2011 to $400,000 per well in 2012. Management is also
planning to curtail the use of fresh water by 25% for fracking by
the end of 2014.
Houston, Texas-based Halliburton is one of the largest oilfield
service providers in the world, offering a variety of equipment,
maintenance, and engineering and construction services to the
energy, industrial, and government sectors. The company operates
under two main segments: Completion and Production, and Drilling
Halliburton is among the top three players in each of its
product/service categories, and is present in all major
hydrocarbon-producing regions of the world. The company enjoys
very strong relationships with both publicly-traded and national
oil companies worldwide.
However, the new environmental regulations for hydraulic
fracturing in the shale plays could adversely impact the company,
as it will force Halliburton to reveal the structure of its
fluids, and potentially wipe out its competitive advantage in the
high-end pressure-pumping market.
Halliburton currently carries a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S.
equity market over the next one to three months.
In the energy sector, firms that are expected to outperform the
U.S. equity market over the next one to three months are
Compressco Partners LP
Range Resources Corporation
Calumet Specialty Products Partners LP
). All the firms currently carry a Zacks Rank #1 (Strong
CALUMET SPECLTY (CLMT): Free Stock Analysis
COMPRESSCO PTNR (GSJK): Free Stock Analysis
HALLIBURTON CO (HAL): Free Stock Analysis
RANGE RESOURCES (RRC): Free Stock Analysis
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