Thursday, March 19, 2009

A Future Water Issue?

Given the amount of water it takes to bring a horizontal shale well to completion, I'm pretty sure water is going to be a big issue for the oil and gas exploration industry going forward. The Wall Street Journal published an interesting article discussing how major oil companies are buying and stockpiling water rights in the Rocky Mountains, specifically in Colorado.

While the Haynesville Shale, especially in Louisiana, is not likely to have the same issues concerning water as the arid western states, it's a sure bet that drilling water wells into the aquifer to support oil and gas operations will be a contentious issue anywhere there is drilling. Keep an eye on it.

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