Intercept Energy Services’ proprietary, high-efficiency water heating
systems designed to support the hydraulic fracturing industry offer some of the
best emission, fuel consumption and safety advantages available today. The
company’s growing fleet of HE Heater™ based systems, administrated by the
company’s wholly-owned subsidiary, Intercept Rentals, allow oil and gas
operators to continue working even in extreme cold weather situations, yet the
systems emit minimal to zero radiant heat from their fully encased burners,
making them extremely safe for workers to be around.
The hydraulic fracturing market continues to grow at a steady pace, even
in an environment of downward pressure on crude oil prices, with the advent of
even newer technologies like “super fracking,” which uses a high volume of sand
pumped down hole to increase production from the targeted shale by around 50%,
also lowering the break-even cost for producers. According to senior energy
analyst and a managing director at Oppenheimer & Co., Fadel Gheit, who has
been analyzing energy trends for over 28 years and who has been named four
times to the Wall Street Journal’s All-Star Annual Analyst Survey, U.S. shale
production will keep on growing despite falling crude prices that are making
energy much more affordable to average consumers.
Gheit was recently quoted describing some of the underlying factors
driving this sustained growth trend and indicated that the sharp reduction in
well completion time, from as much as 90 days only five or six years ago, to
around two weeks today, as well as the ability of a single rig to go from
drilling one well back then, to as many as four wells today, would continue to
provide strong tailwinds for sector operators. This outlook lends substantial
credence to a report on the overall $41.5B hydraulic fracturing market
published this year by MarketsandMarkets, which projects an 11.8% CAGR for the
space through 2019, when their estimates indicate the market will grow to
around $72.6B.
IEA forecasts even predict a potential golden age for unconventional gas
recovery like shale gas and coal bed methane, with unconventional currently
making up more than half the estimated natural gas resource base and expected
to grow to around 70% of the resource base by 2035. Since just 2008, oil
production in the U.S. has climbed 80% to around 9M bbls/day and even the vast
majority (around 80%) of the so-called “tight” oil estimated to be pumped next
year, will remain profitable with prices in the $50 to $69 range, according to
a new study by strategic planning, operations and engineering powerhouse IHS.
One of the top domestic oil and gas plays continues to be the Bakken and
Three Forks formations of the Williston Basin, which stretches across North
Dakota into eastern Montana, and which jumped up past 1M bbls/day of crude oil
production earlier this year, according to EIA data. With around 190 rigs
currently active in North Dakota, the recent move by Intercept Energy Services
(OTCQB: IESCF) to expand their operations in the Bakken is a shrewd one indeed.
The heated water for fracking niche is an excellent way to play the
burgeoning $750B oil and gas services market, as the company makes money off
drilling activity itself and is not impaired by well failure rates. Moreover,
because the company’s proprietary mobile heating units virtually eliminate the
possibility of on-site injuries and accidents, which are a serious concern when
using traditional water heating systems, IESCF has found fast favor among
operators. The company’s systems have seen strong reception among particularly
those operators working in tight spaces where an open-flame diesel water
heating truck, ambient gasses and the risk of severe burns to workers who put
their hand on the wrong part of the vehicle, pose a considerable accident risk,
as water heating truck-related accidents often result in costly downtime or
worse.
Intercept Energy Services prides itself on the safety of their heating
unit designs and the clean, efficient burning of their patent pending
propane-powered systems, which can even recycle typically spent/waste heat back
to the process of heating the water. The company boasts some of the most
cost-effective and environmentally sound frac water heating technology
available on the market today, giving operators who are under growing pressure
to clean up their environmental footprint a strong competitive advantage.
For more information, visit www.InterceptEnergy.ca
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