Friday, 20 November 2015
Wednesday, 18 November 2015
REDONDO BEACH, CA / ACCESSWIRE / November 18, 2015 / When oil was trading at 80 to 100 dollars per barrel, there was plenty of room to pay for the high cost of water management for fracking operations, however, now that the price of oil is falling and flirting with 40 dollars per barrel, profit margins are upside down, and continuing high water management costs are exacerbating widespread industry losses.
Water management for fracking operations includes the acquisition of source water that averages 4 million gallons per well, transportation of the source water to the well, transportation of the flowback and produced water from the well to the disposal site, and fees for disposal into an injection well. Southwestern Energy (NYSE:SWN) CEO Steve Mueller, estimates that water transportation for a single well, primarily trucking, costs around $1.5 million or 25% of the $6 million that an average Marcellus well costs.
Trucks are the predominant method of transporting the water and a typical truck carrying about 100 barrels (4,200 gallons) of either fresh water or wastewater normally ranges between $95 an hour to $150 an hour just for hauling. Hauling time varies substantially depending on proximity of source water and disposal wells. With an average well requiring about 4 million gallons of water, that means about 1,000 truck visits are needed, plus an additional large number of truck loads to dispose of the flowback and produced water.
The following chart prepared by researchers at the University of Texas illustrates that transportation reliant freshwater is by far the most commonly used source water for fracking operations followed by the distant second choice of brackish groundwater. Recycling is the third and least used potential source of water, but if used on site, it could greatly reduce the big transportation costs and disposal fees.
The big question is, "With oil prices so low, and the need to slash water transportation and disposal costs, why is recycling being underutilized?"
The answer is that existing recycling methods are based on older and less efficient technologies that are simply too expensive and not cost-effective. For example, Halliburton, a leader in oilfield services, has been advertising and promoting its own brand of recycling technology called H2OForward(TM), but has been conspicuously absent for the past year during the steep decline of oil prices. The high energy cost of UV and electro-coagulation combined with low oil prices have very likely slowed adoption of Halliburton's H2OForward(TM) recycling system probably causing the company to temporarily shelf it until higher prices return. West Virginia University published a report, "Zero Discharge Water Management," discussing other recycling technologies and claimed that the cost to treat fracking water with evaporation/crystallization runs close to a staggering $140 per 1,000 gallons as opposed to Reverse Osmosis that runs between $6 to $10 per 1,000 gallons.
In a research publication reviewed by the Department of Energy on June 30, 2015, the NETL (National Energy Technology Laboratory) of the DOE sums up the basic reasons why recycling is not being adopted today, "The U.S. Department Of Energy (DOE) is also interested in increasing the effectiveness of flowback water treatment processes because conventional water treatment technologies such as chemical treatment, filtration, reverse osmosis, distillation, etc., must be adapted to treat a range of flowback water chemistries and have disadvantages such (as) high cost, significant energy consumption, and low efficiency."
When oil prices were higher, Walter Dale, a business manager for water solutions at Halliburton said, "Let's not treat the water, let's not take the salt out. We can make frack fluids out of it." Vikram Rao who spent more than 30 years with Halliburton as senior vice president and chief technology officer partially agrees with Mr. Dale and is now a technical advisor to BioLargo. Dr. Rao points out, "Massive amounts of water used in new wells and in sweeping or flooding secondary recovery operations do not need to be freshwater. Reused water and underground brackish water are two obvious sources for replacement. In fact, brackish water and recycled water are even preferred over freshwater if its salinity is compatible."
On Site Recycling Could Slash Water Management Costs
Any technology that could greatly reduce transportation and disposal costs would be a windfall to operators because it could not only save money, but it could help restore many operators to profitability. To be cost-effective, this technology would have to be installed on site in close proximity to wells to eliminate or reduce costly truck hauling. BioLargo has been working on the problem of providing cost-effective water management for over 7 years, and now has a proven solution that is ready for commercialization.
Like most oil producers, Legacy Reserves LP (LGCY), Goodrich Petroleum Corp. (GDP) and Halcon Resources (HK) have been reporting growing losses over the past 2 years that appear to be increasing as the price of oil continues its downward descent. Reducing water management costs could significantly improve this situation for the companies and shareholders.
BioLargo AOS Filter
- Disinfects at less than 1/20th the energy cost of the nearest technical competitor, greater than 100 times the efficacy, and more than 10 times faster.
- Especially effective removing soluble organics like napthenic acids, 1,4 dioxane, sulfur compounds, benzene, and aromatics.
On August 17th, a team of researchers at the University of Alberta unveiled the BioLargo, Inc. (BLGO) AOS Filter/Reactor to an audience of over 30 experts from oil & gas, water treatment, maritime, academia, government and finance. Findings from over 100 studies were presented and demonstrated the AOS Filter/Reactor's ability to disinfect pathogens 100 times more effectively than chlorine, at 10 times the speed, and at only 1/20th of the cost of the closest competitor. One year earlier, the AOS Filter/Reactor received the coveted Technology Star Award from New Technology Magazine, known as the First Word on Oil Patch Innovation.
Dennis Calvert, BioLargo CEO says, "We are confident that the AOS Filter is the best answer to Water Management issues that the industry is searching for, but we also know that successfully taking a revolutionary and disruptive technology to market is a Herculean task that will require a formidable industry partner and begs for public research dollars to sponsor the engineering and design work to deliver a scalable solution. Discussions with potential partners after the recent unveiling are accelerating as our company continues to seek the best-fitting partner to quickly bring the AOS Filter/Reactor to market. Industry is well aware that the stakes are high."
Calvert continuing, "The AOS Filter/Reactor combines iodine, water filter materials and electrolysis within a flow-through water filter device, generating extremely high oxidation potential that easily and quickly eliminates soluble organic contaminants and efficiently delivers extremely high rates of disinfection. The science behind the AOS Filter represents an astonishing discovery that will fundamentally change the way water is treated."
Remarkably, the BioLargo AOS Filter/Reactor uses commonly understood materials that are readily available, and it operates at ultra-low power levels. Its configuration essentially converts what would ordinarily be considered a typical filter into a safe and highly effective electrochemical reactor that generates extremely high levels of oxidation potential across the surfaces within the device. As a result, it can do the job at a fraction of the time and cost of any other known technology.
AOS Filter/Reactor CAP-X and OP-X Savings
BioLargo has already assembled hundreds of AOS Filter/Reactors from readily available parts as the company prepares for its first customer led commercial pilots. The cost to build one complete AOS Filter/Reactor system and the operating costs are a fraction of today's competing systems. BioLargo expects to save large industries billions of dollars per year.
In her thesis at Tallinn University, "Advanced Oxidation Processes for Water Purification and Soil," Anna Goi calculated the energy costs to operate UV and ozone technologies at varying pH levels to promote advanced oxidation and found that they can run in a wide range of anywhere from $100 per acre foot to as high as several thousand dollars per acre/foot. Energy cost for the AOS Filter/Reactor in a high saline environment is less than 1/20th the lowest cost in Goi's study and is also less than 1/20th the energy cost of the nearest competing technology.
The AOS Filter/Reactor Is Very Close To Commercialization
The next step for BioLargo is to engineer the unit to fit customers' needs to provide cost-effective on-site recycling of flowback and produced water. A number of experts in this area are now working to identify the key challenges and begin the arduous process of refinement to tackle the very high volume and demanding challenges. The large cost savings the AOS Filter/Reactor can provide has the potential to help return profitability to the oil & gas industry and at the same time benefit global economic growth by providing greater quantities of cheaper energy. Any energy producer dedicated to pursuing best practices for increased sustainability and profitability will find the AOS Filter/Reactor very compelling. Investors searching for difficult-to-find pure water treatment plays will also find BioLargo compelling.
Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. For full disclosure please visit: http://secfilings.com/Disclaimer.aspx.
SOURCE: Emerging Growth LLC
Wednesday, 11 November 2015
The Maritime Industry is Using Nature to Purify the Water it puts Back in the Ocean - Article by Equities.com - Steve Kanaval
By Steve Kanaval
|Maritime Industry Facing New Regulations to Clean|
Ballast Water Making it a High Growth
Segment of Water Industry
LOS ANGELES , Nov. 10, 2015 /CNW/ - A massive business opportunity in the maritime industry comes at a time when water scarcity, as well as the global push to manage contaminated water, is at an all time high. We recognized quite some time ago that the key to solving the world's water problems, including the maritime example, would require a new way of thinking about how to treat water, and that any viable solution had to be significantly less expensive than what was historically available.
Nature Shows the Way
The Iodine Cycle is an elegant cleansing system for our earth, and it is a critical cycle to maintain microbial balance in nature, while at the same time, iodine supports life as an essential nutrient and catalyst to oxygen. Iodine is part of the circle of life. Stored in the ocean, processed by phytoplankton and algae, evaporated into the clouds and activated by UV light, iodine falls to the earth with the rain, as it is taken up by plants and animals on earth, and eventually finds its way back to the ocean.
One company I have been following for years has a unique and cost-effective iodine solution that accelerates the mechanics of this natural cycle, enabling an extremely efficient cleansing method sending treated water back into the ocean. Just a few weeks ago, University of Alberta researchers unveiled the tested results of the BioLargo, Inc (BLGO) AOS Filter and explained the findings of 100 studies that demonstrate its potential to save the maritime industry billions, as well as offering the potential to impact every segment of the $350 billion water industry.
|What is Ballast Water?|
AOS Filter Operating Cost Comparison
In her thesis at Tallinn University, "Advanced Oxidation Processes for Water Purification and Soil", Anna Goi calculated the energy costs to operate UV and ozone technologies at varying pH levels to promote advanced oxidation and found that they can run in a wide range of anywhere from $100 per acre foot to as high as several thousand dollars per acre/foot. Energy cost for the AOS Filter in a high saline environment are less than 1/20th the energy cost of the nearest competing technology.
To put this in perspective; a tanker carrying 25 million gallons of ballast water is the equivalent of about 75 acre/feet that has to be processed on each voyage before discharging back into the ocean. At the most conservative cost of $100 per acre/foot for energy costs alone, that equals close to $7,500 per trip. On the other hand, the AOS Filter uses so little energy that the energy cost to process 75 acre/feet at less than 1/20th would be in the $375 range or less, per voyage, versus $7,500 for the cheapest system. If a vessel with this much ballast water makes 30 voyages per year, operating costs for energy to power the AOS Filter would be less than $11,250 versus a minimum of $225,000 for competing systems.
The AOS Filter combines iodine, water filter materials and electrolysis within a flow-through water filter device, generating extremely high oxidation potential that easily eliminates soluble organic contaminants and efficiently delivers extremely high rates of disinfection. The science behind the AOS Filter represents an astonishing discovery that will fundamentally change the way water is treated.
The BioLargo AOS Filter uses common materials and operates at ultra-low power levels. Its configuration essentially converts what would ordinarily be considered a typical filter into a safe and highly effective electrochemical reactor that generates extremely high levels of oxidation potential across the surfaces within the device. As a result, it can do the job at a fraction of the time and cost of any other known technology. Of course, the bottom line is that it works – and it works so well that researchers call the results "unprecedented".
AOS Filter Capital Cost Savings
BioLargo has already assembled hundreds of AOS Filters from readily available parts as the company prepares for its first customer led commercial pilots. The cost to build one complete AOS Filter system is a fraction of today's competing systems, and many expect the pricing model to be well received by industry. With an average cost of competing systems for use in the maritime market estimated at $750,000 , analysts expect a substantial cost savings (both Cap-X and Op-X).
The AOS Filter Is Ready for Commercialization
With proven technology that is far advanced over all others, combined with low energy costs and competitive pricing, our AOS Filter is now ready for commercialization.
Contamination of the oceans combined with troublesome worldwide pollution and global drought are all pointing to big global demand and a very bright future for BioLargo's breakthrough technology. BioLargo is able to bring high value to the maritime industry as well as many other industries and to become a commercial success in the short, medium and long term.
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About the Author:
Steve began his career at the Chicago Mercantile Exchange in 1980 and ran the Morgan Stanley derivative desk from the S&P Futures Pit in Chicago Program Trading for the firm. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90's. Steve is known as an expert in Small and MicroCap Stocks and has published thousands of articles and archived video with important market participants related to US Equities. He offers a humorous, unique insight in volatile stocks and the related back stories and drivers. - See more at: http://www.equities.com/community/33449-steve-kanaval/profile#sthash.rOoyVsts.dpuf