Water Droplet

Source: Flickr/Andrea.

American drilling companies use 3-5 million gallons of water to frack each and every shale well in the U.S. Most of that water comes from freshwater sources. This is increasingly becoming an issue for the industry, as many of America's shale wells are being drilled in water-starved areas or are putting added pressure on local municipal water systems. These issues, however, represent a compelling opportunity for oil-field service companies like Halliburton (NYSE:HAL) and Nuverra Environmental Solutions (NYSE:NES), which are working on a compelling solution to recycle frack water.

Halliburton has an ambitious goal to reduce its freshwater usage by 25% this year. One of its initiatives to meet that goal is to frack wells using H2O Forward, which is a water recycling initiative with Nuverra Environmental Solutions. It represents a compelling profit opportunity for investors.  

To help investors better understand the water problem, as well as the opportunity from providing a solution, I created the following slideshow. It takes a closer look at how Nuverra Environmental Solutions and Halliburton plan to profit off of the water problem caused by the growth of fracking.

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.