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Could Earthquakes Signal a Big Win for This Energy Company?

By Tyler Crowe - Apr 4, 2013 at 12:00PM

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The earth may be shaking, but its not from hydraulic fracturing. Here's a look at whats happening in the heart of America.

Back in 2011, several earthquakes in the Oklahoma region caught the attention of America as some believed it was a result of new hydraulic fracturing techniques. After a report that was released recently, it appears that those initial fears have been put aside. It was determined that these earthquakes were strengthened by underground storage wells used to hold spent drilling fluid, and not the fracturing itself. While it may put some energy people at ease, it still raises the concern of the current method of drilling fluid disposal.

In this video, Fool.com contributor Tyler Crowe discusses the results of this report and what he sees as the future of the drilling industry in the U.S. Rather than completely doing away with hydraulic fracturing because of water concerns, he believes there will be a much stronger push toward reusing drilling fluid and treating the spent fluids, much like we do with municipal wastewater. A move like this would play right into the hands of Heckmann (NESC), who specializes in water treatment and storage across the nation.

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Stocks Mentioned

Nuverra Environmental Solutions, Inc. Stock Quote
Nuverra Environmental Solutions, Inc.
NESC
Chesapeake Energy Corporation Stock Quote
Chesapeake Energy Corporation
CHKA.Q

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