A new player on the midstream oil and gas field, H2O Midstream, LLC has set their sights on reducing costs by improving strategic water management in the oil and gas industry. According to Chief Executive Officer Jim Summers, “We see a tremendous opportunity to help the industry lower costs, increase reliability and improve safety performance while allowing producers to focus on core drilling, completions and production operations.” The company is currently involved in obtaining facilities for water disposal, storage and treatment, such as transmission pipelines and gathering systems, to assist them in improving the existing water infrastructure in the midstream phase of oil and gas production.
The ultimate goal of H2O Midstream is to work with other midstream companies and producers to develop water management strategies that are more affordable and efficient than those presently in use. Dedicated to environmental compliance, safety and operational excellence, the central components of H2O Midstream’s best practices include the following:
- Regular pipeline maintenance consisting of corrosion protection, pressure testing, leak detection and integrity testing.
- Providing both local stakeholders, including landowners, with continuing education and outreach.
- Consistent compliance with industry standards along with federal and state requirements.
“The key is applying best practices developed over the past 40 years by traditional midstream companies to the current challenges of the emerging water market,” says Summers. By viewing water not as waste but as a commodity, the company hopes to revolutionize water infrastructure through implementation of the highest standards for environmental and safety compliance, reliable operations and maintenance.
A Partnership Approach
H2O Midstream is taking a long view of the oil and gas industry by creating unique partnerships with vendors, producers and customers where they address complex water infrastructure issues through customized operational approaches and contract structures. As a partner, H2O works with producers to provide complete source-to-sink management of flowback water or to tailor a flexible capital arrangement in which operational control of the water infrastructure is retained by the producer. Avoiding a “one size fits all” approach is expected to benefit all project partners on an individual level.
The company is also developing financial partnerships by securing initial funding from EIV Capital, a private equity firm located in Houston, in the amount of a $100,000,000 commitment. Midstream CEO Jim Summers stated that “EIV’s strong relationship with our co-investors provides direct access to the additional capital necessary to acquire, develop and build large gathering, storage, treatment and disposal operations needed to support the growth of the industry throughout North America.”
EIV specializes in the energy industries midstream sector and will work with H2O on every project phrase from operations, development, financing and structuring to project evaluation. Access to EIV’s experience and ingenuity gives H2O the ability to address water infrastructure concerns for small, medium and large producers in an environment that is currently cost-challenged. EIV shares the H2O Midstream goal of providing “Safe, reliable, long-term solutions for producers’ water logistics in the oilfield.”
As an emerging start-up company, H2O, LLC is committed to addressing and improving the safety, reliability and efficiency of oil and gas industry water operations by providing more effectual upstream water management while reducing overall water logistics costs.