- Fracking now accounts for half of oil production, and 90 percent of new wells are fracked
- Water remains a limited resource, yet is vital to fracking process
- American Energy Partners’ vertically-integrated subsidiaries deliver solutions
No matter what the future may hold, for now, the world runs on oil. Oil is the life blood of the world’s economic development, and obtaining oil has been an ongoing quest since long before the invention of the internal combustion engine. The first successful oil well in the U.S. was drilled near Titusville, Pennsylvania, in 1859. From there, drilling moved rapidly across the entire country, and an oil boom ensued. U.S. crude oil production peaked in 1970 at 9.64 million barrels daily, but production waned after that until the advent of advanced horizontal drilling techniques and hydraulic fracking.
Hydraulic fracking is a sophisticated drilling technology that has exponentially expanded petroleum and natural gas production in the United States. Fracking now accounts for over half of U.S. oil production and two-thirds of natural gas production in the country, making the U.S. the largest natural gas producer in the world. However, large use of water in the fracking process creates controversy. Water is vital to the hydraulic fracking process, and competition for water is fierce.
In an interesting historical twist, Converde Energy USA, Inc. (OTC: XFUL), d/b/a American Energy Partners, Inc., and its subsidiaries are providing solutions in the same area where some the country’s first oil wells were drilled. The company’s sweet spot is where energy production and water meet technology. XFUL’s subsidiaries target energy operations to design, build and operate regional water treatment facilities that serve both the industrial and energy sectors. Together, American Energy Partners and its subsidiaries comprise an integrated vertical that sources, scrubs, and supplies water to mining, oil and gas, power, and other industrial concerns.
The company’s Hydration Corporation of PA (HCPA) subsidiary possesses the technical know-how to source, implement and distribute reclaimed water at a profit. HCPA’s patent-pending process delivers among the highest energy yields possible from a wide range of water-bearing assets and does so with one of the lowest capital expenditures of any other known water process.
XFUL’s American Energy Solutions subsidiary provides off-the-shelf and custom-designed treatment technologies across its customer base and augments HCPA’s low-cost treatment and distribution solutions, while the company’s Gilbert Oil & Gas Company subsidiary is its oil and gas business arm that leverages relationships and experience to source drilling, operating, and partnership opportunities in the oil and gas space. Gilbert Oil & Gas is positioned to not only become a strong customer of the other subsidiaries but also to attract other customers and open new markets.
With almost 90% of all new U.S. onshore oil and gas hydraulically fractured, demand for XFUL’s integrated oil and water services could surge. Who says oil and water don’t mix?
For more information, visit the company’s website at www.AmericanEnergy-Inc.com
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