SOURCEWATER'S MARKET RESEARCH TEAM
Sourcewater’s market research team is available to help you plan and underwrite your next project. Whether you are an operator developing a budget for water sourcing, recycling and disposal on your new acreage, a water disposal or treatment company looking to underwrite your next project, or an energy investor who needs an independent water or disposal market assessment, Sourcewater’s experts and systems are ready for the assignment. A complex and evolving water market means you have unique research needs. There is no oil and gas use case or research project too audacious for the Sourcewater team to consider.
EXAMPLE RESEARCH PROJECTS
A private-equity backed operator had just signed its first lease in the Delaware Basin before planning the water sourcing and disposal.
Now they were at the mercy of the surface owners on the lease and upside-down on water sourcing and disposal costs. They asked Sourcewater to research all the water sources and disposals in the area, including nearby operator facilities, to provide market intelligence, alternatives and leverage for the negotiations with the surface owners. Sourcewater found an unused operator-owned disposal nearby and a long-term low-cost water supplier out of the area that could build a pipeline to their acreage, potentially savings tens of millions of dollars in capital and operating costs over the life of the lease.
An energy supermajor asked Sourcewater to provide a full assessment of the water market dynamics of a shale basin outside the Permian. Sourcewater put together a program of custom satellite imagery analytics, public record acquisition, and analyst market research combined into a custom ArcGIS overlay to give a comprehensive picture of the region.
A water treatment company was seeking financing to construct a nine-figure produced water recycling facility in the Permian Basin. Prospective investors wanted an independent appraisal of water and disposal pricing, supply and demand in the market area of the proposed facility in order to confirm the project economics. The company asked Sourcewater to research these factors and produce the appraisal.
A large ranch owner in the Midland Basin was approached by an operator to sell water on a long-term contract. The ranch owner wasn’t sure if the price offered was fair market value and asked Sourcewater for a report. Sourcewater identified and confirmed ten recent water transactions in the same county that showed the price
offered was only about one-third of the going rate, enabling the land owner to negotiate for millions of dollars of additional income over the term of the contract.