Halliburton Offers New Frack Fluid

As regulators continue to scrutinize the increased use of hydraulic fracturing in oil shale formations such as the Bakken and Three Forks in North Dakota, one of the leading developers of the technology has announced a new product made from what it says are materials likely to be found in the typical kitchen. According to Texas-based Halliburton, its new "CleanStim Formulation" uses ingredients derived entirely from the food industry.

The company's announcement appears to be part of a strategy to appease the Environmental Protection Agency as it pursues a Congressionally-mandated investigation of the environmental impact of hydraulic fracturing ("fracking"), particularly on drinking water. In September, the EPA asked nine major U.S. oilfield services companies, including Halliburton,  to disclose the chemicals used in their fracking process.

Halliburton refused to comply, prompting the EPA last week to issue a subpoena requiring submission of the requested information. (The other eight companies honored the agency's request). Halliburton responded yesterday by announcing (along with its new frack fluid) that it had disclosed "additives and constituents that are used for several typical wells in Pennsylvania."

While this appears to be less than the full disclosure originally requested, the EPA has not announced its next move as of this post. However, the agency has been ordered to provide initial results of its investigation by the end of 2012 and has stated that the thoroughness of the study depends on timely access to detailed information regarding the methods and materials used in the fracking process.

Halliburton has long been a staunch defender of hydraulic fracturing. According to the company's  position statement,  "Our goal is to provide products and services that have the smallest environmental impact, are safe in their intended use, consume energy and natural resources efficiently and can be recycled, reused or disposed of safely. We seek to develop services and technologies for maximizing the recovery of oil and gas in existing reservoirs, and for pursuing clean energy sources for the future."

Halliburton is a prominent participant in the North Dakota Bakken and Three Forks plays. The company broke ground last fall on a new 30.8 acre complex in Williams County estimated to cost between $15 and $20 million and reportedly has over 300 employees in the state.