INVESTMENT IDEAS Shale gas provides opportunities for water companies by Bruce Jenkyn Jones, managing director of Impax Asset Management, London, April 24, 2013, PNP Paribas Investment Partners
“Comparable to selling shovels during the gold rush”.
Some of the best investment opportunities arising from the shale revolution are in the suppliers helping the industry to operate more efficiently and reduce pollution. Water used in the hydraulic fracturing process needs to be treated so it can be re-used or be clean enough to be returned to aquifers. We believe the industry will inevitably become subject to increasingly strict regulatory controls. We see four key areas which are set to benefit from shale gas development.
The water sector: companies involved in water supply, sale of water chemicals, fracking pumps or associated wellhead infrastructure, treatment of the contaminated water and water recycling.
Testing: companies assessing output products from the wells and throughout the refining process.
Hazardous waste: companies involved in safe disposal of hazardous waste and the treatment and disposal of the highly contaminated by-products.
Environmental consultancies: engineering and consulting companies setting up and operating well sites, particularly water provision to well sites, building pipelines for the produced gas and liquids. Also consultants giving environmental assessments, site remediation and activities such as tracking gas lost to the atmosphere and monitoring well-case linings. [Emphasis added]
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