Private equity firms are investing in companies that treat fracking water in the Permian Basin. Private equity has committed $4B to buy or start frack-water management firms over the last four years, according researcher Global Water Intelligence. The average frack job in the Permian now consumes 13MM gal(309K bbl)of water, up 40% in two years, according to a Reuters analysis of Permian producers' data reported to FracFocus.org. A Morgan Stanley report estimated that there are currently 5.5K wells to be drilled in the Permian, necessitating 2.75B bbl of water to complete. Given the increasing water needs in the Permian, water bills in the play are forecast to rise 17% this year to $14B, according to consultancy IHS Markit-more than three times what North American producers spent last year on sand to frack their wells.
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