OOIL: Bottom Bounce & Big Attention Ignites New Attention on this Clean Frac Play!
Most people don’t know it, but the oil and gas industry is one of the most water-intensive industries in the world. It’s both a large consumer of fresh water and a large producer of contaminated water. This water is toxic and there’ s no easy way to get ride of these toxins until now and with such a large excess of contaminated water simply being considered waste, the potential for companies to step in and help remediate this “waste water” situation grows even more.
As you may already know, it was only about a month ago when I first brought OriginOil (OOIL) to you and after the first introduction, it went on a multi-week explosion to highs of more than 70PCT. Continue reading, and you’ll start to see why I’m not only coming back to this one but also why I consider the breakout potential of this as more of a “marathon” compare to a “sprint” (as history has already proven).
Recently OriginOil announced that the company’s GEN 2 Clean frac system landed in LA. After realizing major success from its smaller GEN 1 system, OOIL has stepped the game up in a BIG way! This new system can process more than 10,000 barrels of oil- and chemical-laden frack water each day showing that OriginOil’s CLEAN FRAC system is not only scalable but still small enough in comparison to other frac treatment systems to actually fit into a 40ft container according to the company.
It wasn’t that long ago when the company was just beginning to gain traction in the market for clean frac technology and since then OriginOil has been increasingly growing by leaps and bounds. OOIL has created a system once capable of cleaning up to 1000bpd and successfully scaling it up to handle 10X the processing capacity and roughly half a million gallons of dirty, oily water per day!
Bear in mind that it’s not just how much the system can process but actually how it processes. OriginOil announced earlier this year that in company testing, EWS was found to efficiently generate chlorine dioxide (CLO2) an important pre-treatment step for frac flowback, produced water and other applications. The company intends to make this process part of its standard CLEAN-FRAC™ product offering. The huge advantage of this is that through OOIL’s process, the system can actually help in the process of turning sour crude into sweet crude and in the case of the oil industry, sweet crude commands up to $15 more per barrel.
This is an obvious advantage for frac companies to utilize the OOIL CLEAN FRAC system before others and give a competitive edge to the company. Furthermore, OriginOil has stated that its Electro Water Separation™ technology can be utilized to continuously remove oils, suspended solids, insoluble organics and bacteria from produced or ‘frack flowback’ water and can save as much as $200,000 per frack job.
In natural gas operations, 3 to 5 million gallons of fresh water are used to frack a single well. The EPA estimates that around 35,000 wells are fracked every year in the United States. While fracking technology promises to unleash an abundant supply of inexpensive natural gas to power the modern world, water is quickly becoming serious limiting factor. Additionally, the water comes back out from the wells laced with contaminants that require rapid and efficient water treatment.
According to the U.S. Department of Energy, an average of 3 barrels of contaminated water is generated for each 1 barrel of oil produced. In the United States, the average is 7 barrels of water. Greentech Media reports “energy companies pay between $3 – $12 to dispose of each barrel of produced water, implying a potential world market value between $300 billion and $1 trillion per year.” Now OriginOil has kicked things into high gear with its new, scaled up CLEAN FRAC system, which opens massive market opportunity for the company, in my opinion.
Attention has definitely been increasing over the latest developments coming from OOIL and the market is buzzing with activity. Over the past several days of trading Origin has seen a large increase in daily liquidity with intra-day swings of 10-15%. In fact the current chart patter indicates that OOIL could be positioned for a strong bullish reversal in my opinion. It’s called a “Double Bottom” or “W” Pattern: