The movement of human capital and specialized oilfield equipment from Alberta to West Texas is alarming. I completely agree with Dan Hoffarth’s (Citadel Drilling) 2018 statement regarding his company’s transition to Texas: “this was a need, not a want”. Today, five out of six high-spec Citadel rigs are working in the Permian Basin and ~90% of their revenue is expected to come from south of the border (DOB, 2019).
Connate Water Solutions is a specialized hydrogeology company and we track water demand, new water technologies and oilfield service activity. In Figure 1 above, the data shows a stagnant Alberta rig count in comparison to a significant increase in Texas drilling activity. This is primarily due to the streamlined regulatory environment and dramatic increase in capital invested in the Permian Basin. IHS Markit estimates the 2018 market for frac water supply and transportation in the Permian Basin to be valued at ~$12 billion!
In order to capitalize on this apparent opportunity, we have created Connate Water Solutions LLC and opened a branch office in the strategic location of San Antonio, TX. We are excited to expand our hydrogeology services and diversify our revenue by providing custom groundwater solutions for the Eagleford and Permian basins. Stay tuned and check out our Lone Star State services video below.
Geoff Kovacik M.Sc. P.Geo.
Founder and Principal Hydrogeologist
Connate Water Solutions Inc. | 204-1001 1st St SE | Calgary, AB T2G 5G3
Connate Water Solutions LLC. | 18911 Hardy Oaks Blvd | San Antonio, TX USA 78258