Oil services industry starting to embrace innovation
News of Nasdaq listed Energy Recovery's massive deal with Schlumberger suggests that disruptive technology seems to be attracting the attention of key oil and gas industry participants, despite the current cyclical downturn.
Nasdaq listed Energy Recovery (NASDAQ:ERII), a small beleaguered oil equipment group, has announced a 15-year, US$125M deal with oil services giant Schlumberger (NYSE:SLB) for exclusive use of ERII’s VorTeq hydraulic pumping system that reduces the number of pumps needed on a fracking job. The VorTeq pumping system is the first hydraulic fracturing manifold built to isolate hydraulic fracturing pumps from abrasive proppants that cause pump failure and the system could save SLB as much as $5/bbl on a frac job, cutting the number of pumps needed to as few as four from 20. Shares in Energy Recovery are up over…