1 Radioactive Opportunity Nuverra Environmental Solutions Can’t Afford to Miss

Radioactive waste in North Dakota is a big problem for Bakken producers, but a massive opportunity for Nuverra Environmental Solutions.

Apr 17, 2014 at 12:32PM

Images

Photo credit: Flickr/Mad House Photography.

Recent stories in both The Wall Street Journal and Bloomberg painted an ugly picture of America's energy boom. Hundreds of garbage bags filled with mildly radioactive waste were found at a deserted gas station in a remote North Dakota town and on flatbed trailers near a landfill. The bags contained what are known as "oil socks" used to capture silt from wastewater that results from hydraulic fracturing.

North Dakota state regulators are still trying to determine who is responsible for these improperly disposed materials. However, one of the trailers is believed to belong to a company that had provided services for top Bakken driller Continental Resources (NYSE:CLR). The discovery prompted Continental to cut ties with the company.

The Wall Street Journal article pointed out that North Dakota doesn't actually have a single storage facility capable of handing the radioactive waste. That problem, however, is a major opportunity for Nuverra Environmental Solutions (NYSE:NES), which opened its Bakken landfill last year.

Nuverra Bakken Landfill

Source: Nuverra Environmental Solutions' website.

Nuverra's new state-of-the-art, state-approved facility accepts solid waste from oil-field exploration and production activities. That includes soil contaminated with drilling fluids, drill cuttings, geothermal production materials, and other solid-waste materials. Needless to say, this isn't a residential landfill, but was built specifically to provide an environmentally responsible location for disposal of drilling solids.

Providing responsible disposal is actually one of Nuverra's core operations. While Nuverra owns 56 liquid disposal wells across the country to properly dispose of fracking wastewater, it is also working with Halliburton (NYSE:HAL) to recycle this water as part of the two companies' H2O Forward agreement. This means only the water that can't be reused will be disposed.

Nuverra is now taking the next logical step in its efforts by working to recycle drilling solids as well. The company is collaborating with partners to develop solids treatment solutions and technology, as the following slide shows.

Nuverra Solids

Source: Nuverra Environmental Solutions Investor Presentation (Link opens a PDF).

As that slide points out, Nuverra is working to eliminate the burial of drilling solids at the well site. Furthermore, it intends to build a thermal desorption system that would expand its treatment capability so that it can create marketable byproducts from the waste. This would reduce waste volume by 30%-50% while creating beneficial uses for the material.

Because of these investments, the landfill could be a really important strategic asset to Nuverra and Bakken shale producers such as Continental Resources. Not only does it offer proper disposal of drilling solids, but it can potentially turn that waste into beneficial byproducts. There's also the potential that the landfill could be used to solve the oil-sock problem, which would be a big win for Nuverra and the Bakken region. 

Nuverra stands alone in its laser focus on providing environmental solutions to the energy industry. Its Bakken landfill could become the final resting place of these oil socks that some thought could be hidden away and forgotten. Clearly, this is an opportunity that Nuverra doesn't want to miss -- it can take advantage of the environmental missteps of the industry and sign up more customers to its full-cycle, sustainable environmental solutions. 

OPEC is absolutely terrified of this game changer
America's shale revolution does't worry OPEC, yet. OPEC is, on the other hand, terrified by another oil-field game-changer. To find out more, be sure to check out an exclusive, brand-new Motley Fool report where we reveal the company we're calling OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock.

Matt DiLallo owns shares of Nuverra Environmental Solutions. The Motley Fool recommends Halliburton. The Motley Fool owns shares of 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers