1 Big Risk That Has Energy Companies Quaking [Stock Market & Investing; HEK, RDS-A, XOM]
![1 Big Risk That Has Energy Companies Quaking [Stock Market & Investing; HEK, RDS-A, XOM]](https://thenewstalkers.com/discussion/image/discussion_image/14132/xxxlarge/_v=63f541444423810)
The water used in fracking not only contains sand, but there is a real environmental concern about the chemicals used in the process. Once that water comes back up it needs to go somewhere and it needs to go there in a safe, secure, and environmentally responsible manner. The problem is that the current solution, wastewater disposal wells, could potentially create an even bigger problem: earthquakes.
Researchers now believe that a 5.7-magnitude quake near Prague, Okla., on Nov. 6, 2011, can be directly linked to disposal wells from oil and gas drilling.
There have been rumblings in the past that energy production is linked to an increase in seismic activity. According to a recent article in The Wall Street Journal , one of the more profound examples of this can be found in The Netherlands.
The linkage between production and seismic activity is such that the region's top natural gas producer, a joint venture between Shell (NYSE: RDS-A ) and ExxonMobil (NYSE: XOM ) , doesn't deny that its activity causes the quakes
In the U.S. most of the quakes haven't been linked to drilling of oil and gas but instead to the disposal of wastewater from the process. This is risk that should have energy companies quaking; however, with risk comes opportunity, and one company is emerging with a solution to the problem.
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Full disclosure : I own shares of Heckmann Corporation (HEK).
Disclaimer: Posting this article is not meant to be a recommendation to buy or sell any securities. Purchasing stocks involves risk, including the possibility of losing all the money you have invested. Plus, there is always the possibility that some folks in online discussion forums may actually begin to mock you mercilessly!
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Admittedly a risky bet, but I still like it as a speculative play.
Hopefully they will show good earnings when they report (May 3rd) & stock will start moving up.
Bought more today at $3.89/share.