Bluefield Research: Water service providers adjusting business models

26-07-2017

According to Bluefield Research, they have pinpointed a key trend that underlines the rising value of water to upstream oil and gas operations – the emergence of the midstream water provider. And in response to this development, water service providers in energy markets are currently in the process of adjusting their business models.

This is especially evident in West Texas, where, despite falling oil prices, drilling activity has burgeoned. And that surge is behind a rising demand for water management – storage, supply, treatment, transport – which is also reshaping the competitive water arena, and creating rife opportunities for midstream water service providers who concentrate on cost mitigation.

In Bluefield’s new Research Note Midstream Water, Energy’s New Business Model, this key trend is explored and highlighted.

A rising interest and focus on water is advancing and promoting the strategies of the new midstream water sector, with several firms such as Rice Midstream and Noble Midstream taking advantage of and leveraging on their holding companies’ footprints. Simultaneously, new market entrants supported by private equity, are also positioning themselves to capitalise on the rising demand for water services.

 

Source: Bluefield Research