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Dirty Water Holds Biggest Promise for Pipeline Companies, Jefferies Says
Hoses carry water to hydraulic fracking machinery at at a site near Mentone, Texas.
Photographer: Matthew Busch/BloombergThis article is for subscribers only.
For companies that haul oil and natural gas, the next big thing may be dirty water, according to Jefferies Group LLC.
As booming U.S. oil production unleashes a torrent of contaminated water that rises to the surface with crude, pipeline operators may be in the best position to harness those flows and expand into the water-handling business, said Peter Bowden, Jefferies’ global head of energy investment banking.