Monday, October 19, 2009

Pond Water and Entrepreneurship

There was a good article in today's Shreveport Times about land owners who are digging ponds to collect water to sell to gas production companies for use in hydraulic fracturing for Haynesville Shale wells.

Because of the strained drinking water aquifers in the region, the state of Louisiana has encouraged producers to seek alternative water sources for the several million gallons or so it requires to frack a well. Land owners, sensing an opportunity, have paid contractors to dig ponds to collect water to sell to producers. Other, more fortunate, landowners with existing ponds don't have to go to the expense to build ponds. The market rate for water seems to be somewhere between 25 cents/barrel and the 46 to 55 cents/barrel it would cost to truck it in. (I'm assuming a barrel is 55 gallons.)

I love America. Got a problem? Let's figure out a solution and we'll both profit.

No comments: