Could Earthquakes Signal a Big Win for This Energy Company?

Updated

Back in 2011, several earthquakes in the Oklahoma region caught the attention of America as some believed it was a result of new hydraulic fracturing techniques. After a report that was released recently, it appears that those initial fears have been put aside. It was determined that these earthquakes were strengthened by underground storage wells used to hold spent drilling fluid, and not the fracturing itself. While it may put some energy people at ease, it still raises the concern of the current method of drilling fluid disposal.

In this video, Fool.com contributor Tyler Crowe discusses the results of this report and what he sees as the future of the drilling industry in the U.S. Rather than completely doing away with hydraulic fracturing because of water concerns, he believes there will be a much stronger push toward reusing drilling fluid and treating the spent fluids, much like we do with municipal wastewater. A move like this would play right into the hands of Heckmann , who specializes in water treatment and storage across the nation.


Energy investors would be hard-pressed to find another company trading at a deeper discount than Chesapeake Energy. Its share price depreciated after negative news surfaced concerning the company's management and spiraling debt picture. While the debt issues still persist, giant steps have been taken to help mitigate the problems. To learn more about Chesapeake and its enormous potential, you're invited to check out The Motley Fool's brand-new premium report on the company. Simply click here now to access your copy.

The article Could Earthquakes Signal a Big Win for This Energy Company? originally appeared on Fool.com.

Fool contributor Tyler Crowe owns shares of Heckmann. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter, @TylerCroweFool. The Motley Fool owns shares of Heckmann and has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, Short Jan 2014 $15 Puts on Chesapeake Energy, Long Jan 2014 $4 Calls on Heckmann, and Short Jan 2014 $3 Puts on Heckmann. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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