Averaging 3 million gallons per fracking well, the oil and gas industry is at risk of running our country dry in many geographic regions. As states continue to join the trend of mandating water recycling, companies will fall under increased pressure to comply or they will likely pay hefty fees on top of the costs of an already expensive operating environment. 

Several companies on the production side, such as Southwestern Energy (NYSE:SWN) and Sandridge Energy (NYSE:SD), have begun addressing this problem. From a services standpoint, Halliburton (NYSE:HAL) is pioneering multiple, different applications that producers can choose from to both ease the stress on the environment and reduce overall costs.

Because the idea of recycling water used in fracking is a relatively nascent endeavor for the industry, it could be a great time to consider some key players from an investment perspective. For more analysis on these companies' efforts to address this issue, check out our video below.

Joel South has no position in any stocks mentioned. Taylor Muckerman owns shares of Halliburton. The Motley Fool recommends Halliburton. The Motley Fool owns shares of Nuverra Environmental Solutions and has the following options: Long Jan 2014 $4 Calls on Nuverra Environmental Solutions and Short Jan 2014 $3 Puts on Nuverra Environmental Solutions . Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.