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Water Management Techbook 2018

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28 | April 2018 | hartenergy.com WATER MANAGEMENT: TECHNOLOGY C onsolidation in the water management busi- ness in 2017 has created several larger com- panies with the financial clout to continue investments in R&D. Much of the R&D to date has been focused on automation as a way to improve efficiencies and cut costs during operations, thereby allowing valuable labor resources to be redeployed elsewhere in the organization. Select Energy Services and Rockwater Energy Solu- tions completed a stock-for-stock merger on Nov. 1, 2017, resulting in a post-merger market cap in excess of $2 billion. "Both companies have really been at the fore- front of developing the technology that supports our customers in what has proven to be a very fast-paced evolution of water management," said Holli Ladhani, president and CEO of the newly combined company. Regionally there is not a lot of customer overlap. Select had a much larger presence in the Eagle Ford and Bakken. Rockwater had a much larger presence in the Midcontinent and Northeast. Both had large presences in the Permian. "We found that we were aligned quite well and strengthened our positioning in all major U.S. basins," she added. According to Ladhani, the new company took the best of both old companies to create even better products. One example that benefits operators is monitoring the flow and levels of water to give a complete picture of the water in the impoundment, in the lines and available at the site. "Another benefit is a little less tangible than the existing technology. I would say we're among the best capitalized service providers in the U.S. when you look at our balance sheet," Ladhani said. "That means we can afford to invest in technology and innovation. That's going to help our customers. That means not only bringing the best equipment and the latest tech- nology to the table, but also allowing us to invest in our people who are actually creating and executing the advancements." From recovery to growth The recent industry downturn has had a significant impact on oilfield water treatment service providers. "As oil prices plunged in late 2014 and into 2015, we found that many water-focused energy service com- panies were struggling. By mid-2015 the Texas Water Recycling Association (TXWRA) had lost over half of its active membership. Thus 2016 was a survival year, 2017 was a gradual recovery year and 2018 is looking like it will be exceptional," said Brent Hall- dorson, CTO, Fountain Quail Energy Services, and TXWRA chairman. This prolonged downturn has seen many changes in the water management business, both positive and negative, according to Halldorson. He listed four changes: Regulations, reduced installation cost, lower operation cost and automation are driving new technology in the water management business. Automation, Modular Units Cut Water Management Costs By Scott Weeden Contributing Editor

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