OriginOil Focuses on China for Increased Growth Opportunities
Since 2012 the number of contaminated drinking water emergencies stemming from polluted source water in China has skyrocketed, while the residents of China’s biggest cities are losing confidence in the safety of their drinking water. In fact, in the first quarter of 2013, nearly 8,000 pig carcasses were found discarded in the Haungpu River. Concern over the potential health risks involving contaminated source water has prompted the China’s leaders to move forward on a 5-year, Trillion dollar (that’s right, trillion with a “t”) initiative aimed at cleaning up the water.
Nickolas Eckelberry, OriginOil (OOIL) co-founder and Chief Invention Officer, just returned from a trip to Harbin, China to demonstrate OriginOil’s CLEAN-FRAC technology, which boasts successful removal of oil and contaminants from flow-back water at the rate of 1000 barrels per day. Origin’s technology could prove to be an instrumental part of the clean water equation, as energy service providers are feeling the pressure from the Chinese government to find ways to safely reuse their frac-water. After successful lab tests at the Harbin Institute of Technology, OriginOil has plans to send out another unit into the field that will be monitored by PetroChina, a Chinese oil and gas company that is a listed arm of the state owned China National Petroleum Corporation.
“They are sucking up new technology like a sponge” said Nicholas Eckelberry in a discussion with OriginOil CEO and brother, Riggs Eckelberry upon his return home from China. However due to the problematic nature of entering China’s markets with respect to licensing and validation, not everyone will have access to a slice of this trillion dollar pie. During an interview on the Big Biz Show, Riggs Eckelberry, commenting on the prospects of entering this market, said, “Not to telegraph our plans too much, but it looks like some kind of joint venture structure for the entire country.”
This news is coming of the heals of the recent announcement of another giant deal with STW Resources (STWS), a water reclamation company out of Texas, as well as a deal with multi-million dollar oil service business, Gulf Energy. OriginOil has literally exploded over the last few months, with deals that will capitalize on domestic markets as well as those in the Middle East and North Africa, however the opportunity in China just may be the big break that will catapult this company into superstardom. “Once you do [business in] China at that level, you have the rest of Asia,” said Nicholas Eckelberry. OriginOil is a company that refuses to sleep on opportunities and has the technology to put its money where its mouth is.
In a new Corporate Updated released this morning, CEO Riggs Eckelberry shared several things with the shareholder base. Eckelberry states that not only is fracking becoming a huge business, but China expects to spend a trillion dollars on air and water cleanup. Moreover, he states that the oil and gas industry needs to “get out ahead” of issues such as water consumption and that it isn’t that fracking takes much more water than other uses overall. It’s just the “last user” in some very water-stressed communities. To this end, OOIL has made it the company’s goal to find a way to not only effectively & efficiently clean frack water for reuse but to also positively contribute to the environment around these fracking projects.
Chevron for example is drilling in the Kern River oil field but also “giving back” in a way to California’s drought stricken farming communities by taking reused water and selling it to farmers. The Kern River field also produces 10 times more water than oil and in a state such as CA, it has become more valuable. Chevron sells millions of gallons every day to a local water district that distributes it to farmers growing almonds, pistachios, citrus fruits and other crops. The water is pumped out of the same underground rock that contains oil; after the two are separated, the water flows through an eight-mile pipeline to Bakersfield’s Cawelo Water District, which this year will rely on Chevron’s water for half of its supply, up from an average of a quarter. The district sells it exclusively to farmers for irrigation and reduces its salinity by blending it with water from other sources. For OriginOil, its EWS technology could be a huge proponent to processes like these where extreme drought has caused farmers to look toward potentially contaminated water to use for their crops. Because OOIL can effectively remove almost all harmful solids and waste byproducts, the technology could illuminate the need to “blend” water and instead, simply reuse the post frack water once it has been cleaned.
To the benefit of Origin, the company its developments like this that shows OOIL has the business operations and continued forward thinking leadership to give the investment community a reason to keep watching.
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