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Fracturing is Thirsty

Written By Brianna Panzica

Posted August 12, 2012

This week, we learned July was the hottest month in recorded history.

No matter where you are, you’ve felt it. The heat has chased people all across the country into the sanctuary of an air conditioned building or to the nearest pool.

At the same time, a drought this summer extended to cover well over half of the United States.

Earlier this week, Jeff Siegel told you about Gary Harrington, who was arrested in Oregon for collecting rainwater.

This was even after he had taken efforts to get permits for his storage.

Now, I could launch into a long-winded rant on the liberties at stake…

But that’s for another day. Right now, the issue all comes down to H2O.

On the most basic level, having water to drink is crucial for survival. The average person can live roughly eight weeks without food, but without water the body can shut down in three days. If you’re lucky.

Since the summer has been so hot, people have needed water even more. And not just for drinking… also for staying cool.

Farmers have been desperate for water as well. The huge drought has caused a struggle for the agricultural industry.

With such hot conditions, the farmers in the Midwest regions – where the drought is most concentrated – have needed more water to keep their crops from drying up. They can’t fight the elements, but they can try to reduce damage as much as possible.

Still, the backlash extends further. The United Nations’ Food Price Index for July showed a food price increase of 6%.

But the energy industry needs the water, too.

This drought is taking place at the height of the U.S. shale boom… a boom made possible by fracking, which uses sand, chemicals, and – you guessed it – water. Lots and lots of water.

Oil and gas demand has been higher this summer as people crank the air conditioning in an effort to escape the oppressive heat.

But the fracking companies are struggling to find enough water to keep their drilling momentum.

Some areas have actually stopped allowing the companies to take water from lakes or rivers. It’s just become too precious of a resource.

And as a result, wells are being delayed. Natural gas prices are rising. Oil prices are going up too.

That’s without mentioning the vast amounts of water needed for nuclear cooling.

There isn’t one solution. Unless we have more water, we can’t supply the drinking needs, the agricultural needs, and the energy needs of the nation.

But technology might be able to help with at least one of those.

Keith Kohl has been telling you about a company he discovered that doesn’t require the EPA’s estimate of 2.3 to 3.8 million gallons of water per well.

In fact, it doesn’t require any at all.

It’s a dangerous game when such a basic necessity is on the line. But if fracking companies could be taken out of the running, the problem might not be so bad after all.

Good Investing,

Brianna Panzica

follow basic@brianna_panzica on Twitter

Energy & Capital’s modern energy guru, Brianna digs deep into the industry with accurate and insightful updates into the biggest energy companies and events. She stays up to date with the latest market moves and industry finds, bringing readers a unique view of current energy trends.

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