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Midstream Water, Energy’s New Business Model
The rebound of horizontal drilling activity particularly in West Texas, has sparked a wave of midstream water investments and new business models focused on hydraulic fracturing sector’s critical ingredient: water.
On 20 June 2017 private equity-backed H2O Midstream acquired produced water infrastructure assets Encana Oil & Gas Inc. As part of the agreement, H2O Midstream will gather, dispose, and deliver for reuse produced water for Encana’s position in Howard County, Texas.
In this Research Note, Bluefield water experts analyze shifting business models in the water-energy space, including the role private equity and the emergence of midstream water providers.
More analysis is available through our new Market Insight on Water for U.S. Hydraulic Fracturing: Competitive Strategies, Solutions and Outlook, 2017-2026 (available for purchase and immediate download)
Thames Water Penalized £8.6 million as Leakage Skyrockets
Thames Water revealed it has missed its leakage target for the first time in 11 years. As a result, the London utility was slapped with an £8.6 million penalty, under Ofwat’s outcome delivery incentiveSouthern Copper Wades Deeper into Peru Water
On 29 May 2017, the mayor of Ilo, Peru confirmed that Grupo Mexico mining subsidiary, Southern Copper Corporation, will finance the construction of a US$27.5 million wastewater treatment plant.
Southern’s financing of the plant in Ilo marks a major increase in the company’s commitment to improving the city’s wastewater management—a key priority for Peru’s infrastructure planning.
In this Research Note, Bluefield water experts analyze the impact of this new wastewater treatment plant, evaluate the strategies of the key players, and address Peru’s water infrastructure plans.
Spreading Groundwater Knowledge
Hydrogeologist Steve Baker joins us in this episode to discuss educating water well users about their groundwater so they can make decisions and change behaviors based on that knowledge. Steve’s Kno...U.S. Municipal Water and Wastewater Utility Bill Index, 2017
Across the 50 largest US metropolitan areas, water utility bills average US$38.06 monthly and wastewater bills average US$53.81, based on average household consumption within each respective state. Residential water and wastewater bills have steadily increased by 5.7% annually over the past five years, outpacing average annual income growth (5%) and inflation (1.9%) and magnifying the financial challenges facing municipal water utilities.
Emerging challenges posed by shifting consumer behavior and the need for additional revenue to fund infrastructure upgrades, are compounding with traditional issues like drought and extreme weather fluctuations, pushing utilities to increase water rates to stabilize revenue streams. More utilities are now featuring tiered pricing structures for water rates. Philadelphia just installed a new water pricing model based on income level.
Related: Listen to Bluefield President Reese Tisdale discuss Sacramento’s rising water and sewer rates:
In this Data Insight, Bluefield analyzes water and wastewater utility pricing in 50 metropolitan areas, across 59 water and sewer utilities in the U.S. to identify key trends. Includes Data Appendix of water and wastewater bills by city, including average household water consumption. See more recent analysis of US Municipal water markets.
The Horizon: Markets, Opportunities, and Investment Scenarios in Water (InvestH20)
Presentation slides from Bluefield Research President Reese Tisdale on opportunities and investment scenarios in water, first given at the 2017 InvestH20 Conference in Austin, Texas.
Key topics addressed:
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- Infrastructure Investment
- Wastewater Reuse
- Smart Water
- Hydraulic Fracturing
- Water Opportunities in Power
Watch Mr. Tisdale’s full presentation at Invest H20
More water market perspectives from Bluefield.
