Oil Boom Threatens Fresh Water Supplies

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Hira Shahnawaz Akhtar
Published on
Updated on

Crude oil,  natural gas extraction and fracking is an industry which requires large quantities of water. Shale is an even thirstier business and has been draining away the scarce resource which is fresh water.

Oil Boom Threatens Fresh Water Supplies

Scarce resource becoming scarcer

Water is a major cost for drillers and an expensive one. According to Schlumberger, the oil and gas technical expert, as much as ten percent of the cost of a shale gas well comes from water sourcing, transportation and disposal.

The use of water in the process of fracking has meant that water supplies have become strained. It was reported that in some U.S. counties, more than fifty percent of the scarce water resources went towards the processing of shale oil and gas. It is reported that between January 2011 to September 2012, 65.8 billions of gallons of water were used in hydraulic fracturing operations both for oil and gas development and in vertical and horizontal wells across the U.S. This amount represents roughly the water use of 2.5 million Americans for a year.

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Hira is a financial analyst whose expertise lies in commodity and other financial markets. Hira is currently an independent financial consultant and is working with many international firms like American Arab Solutions (AAS). She has previously served as a Senior Research Analyst at Alternate Research (Pvt.) Ltd. as the Team Leader for the International Equities Research. She has also worked as an equities analyst of Pakistani E&P stocks at Invest Capital Markets. She has experience in business development and conducting feasibility studies in commodity markets, specifically in sugar, palm oil and canola oilseeds. She has cleared all three levels of her CFA (Chartered Financial Analyst) and has an undergraduate degree in Finance.