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PHILADELPHIA -- A call-to-action from a fracking study is inspiring innovation in the natural gas industry. At least one of those innovators is based in Pittsburgh, and that company was featured this week at the Marcellus Shale Coalition's annual natural gas meeting.
In 2011, a case study published in the Society of Petroleum Engineers journal discussed the problem of biocides -- a toxic substance used in hydraulic fracturing. Environmental groups took notice. So did chemists. One chemist representing the American Chemical Society pointed out that biocides " are designed to kill bacteria— it’s not a benign material.” The use of biocides "has come under increasing scrutiny since high biocide concentrations in flowback water increase fluid cost and limit the options for disposal," read the abstract of the SPE study. So the study made a not-so-subtle suggestion: There should be a way to make biocides less harmful. Enter Dirk Thomas Solutions. During the Technology Showcase of the Marcellus Shale Coalition's Shale Insight meeting Wednesday in Philadelphia, nine companies presented new ideas they hoped to bring to the natural gas industry. Mike Derzack presented on behalf of Dirk Thomas Solutions, a company he runs with his son, Cameron. The Derzacks are based in Wexford. Their company created a nontoxic method to disinfect frack water -- an alternative to the current biocide regimen. Their solution is cheaper than current biocide methodology, safer, simpler, and it reduces the amount of wastewater that needs to be thrown away, Mike Derzack said. Why now? The Derzacks are new to the natural gas industry. Entering that industry right now -- especially in the upstream market, at a time when many businesses are scaling back on tracking new wells -- might seem like an inopportune choice. It might seem even more unusual if you know anything about Mike's recent professional background. Mike has dabbled in real estate, selling homes for Keller-Williams and Coldwell Banker. He's also involved in a vacation business, travel-adventures.net; and a snow removal service, Alert Snow. He once owned a successful printing shop in downtown Pittsburgh. But Derzack's educational background is in science. He graduated with a degree in biological chemistry from Albright College. After working in labs for Johnson and Johnson after college, Derzack moved to Pittsburgh with the company in a program that trained chemists to be salespeople. That gave him the bug. He got an MBA from Robert Morris and has pursued various business adventures since then, encouraging his family to take part. "We've always been a family of entrepreneurs," he said. How did they find their way into natural gas? Derzack says the family snow removal service uses brine --- salt water -- to clear roads. Brine is a key ingredient in the fracking process, so his company started selling to local oil and gas companies. From there, they made contacts with drillers, and became aware of the SPE study and the need to come up with a solution to the biocide problem. A business was born. A better answer? The Derzacks' company is just starting out. It has one client, Energy Corp. of America, and it's doing fracking work at ECA's wells in Greene County. But the move to address the biocide problem is catching on elsewhere. When Mike spoke Wednesday at Shale Insight's Technology Showcase, eight other companies also presented. One other was a biocide company. That Bellefonte, Pa.-based company, FyreRok Biofluids, won the conference's 3rd Annual Shale Gas Environmental, Health, & Safety Award. FyreRok developed its own nontoxic biocide to treat frack water. Bill Hall, director of the BFSGIC said. he's glad to see companies trying to solve the biocide problem. "The best innovations solve a problem," he told the Business Times. He elaborated in a statement: “The shale energy industry must continue to operate in an exemplary manner, exceeding stakeholder’s expectations in the environmental, health, and safety areas." And even though the Derzacks' biocide solution lost out to FyreRok in the award, Derzack's not discouraged. "If we get this going, we'll be profitable enough to stop doing our other businesses," he said. "We really think this could be big." Matt Stroud is energy reporter for the Pittsburgh Business Times. Original Source: http://www.bizjournals.com/pittsburgh/news/2015/09/18/toxic-frack-problem-could-have-its-solution-in.html  STATE COLLEGE, Pa.--(BUSINESS WIRE)--The Ben Franklin Shale Gas Innovation & Commercialization Center (www.sgicc.org) announced the winner of their Third Annual Shale Gas Environmental, Health, & Safety (EH&S) Award at the SHALE INSIGHT 2015™ Conference. The award was presented to FyreRok Biofluids, a Bellefonte, PA, based company that has developed a new, novel and safe technology to produce hypochlorous acid at well pad sites to be used to treat water used in the hydrofracturing process.
“We are thrilled to have been chosen to receive this award!” Bill Hall, Executive Director of SGICC commented, “The shale energy industry needs to operate in an exemplary manner, exceeding stakeholder’s expectations in the environmental, health, and safety areas. This is integral to the industry being provided their social license to operate. They must continue to gain the trust and respect of the Commonwealth’s citizens, the workers they employ, and the communities where they operate. Ben Franklin’s Shale Gas Innovation and Commercialization Center is excited to once again shine a light on a Pennsylvania-based company that is helping the industry achieve this standing.” FyreRok Biofluids, a subsidiary of FyreRok Reservoir Consulting, LLC, has developed a methodology to produce a highly efficient, non-toxic biocide, hypochlorous acid, in real-time to treat the bacteria present in fracturing fluids. Hypochlorous acid has been around for many years but never adapted to the demands of today’s massive fracturing treatments due to delivery constraints and shelf-life. The FyreRok technology resolves these issues. “We are thrilled to have been chosen to receive this award!” commented Grafton Withers, President of FyreRok Biofluids. “We are currently demonstrating our patented technology to E&P and service companies to show its simplicity, its reliability, and the efficiency of the biocide in treating fracturing fluids.” The Ben Franklin Shale Gas Innovation and Commercialization Center (www.sgicc.org), an initiative of Ben Franklin Technology Partners/CNP (http://www.cnp.benfranklin.org) is designed to harness innovation and new technologies as a means to maximize the economic return to Pennsylvania’s citizens from the various shale formations comprise part of the energy reserves of the Commonwealth. The Center also identifies, supports and helps commercialize technologies and early-stage businesses that enhance responsible stewardship of the environment while properly utilizing this transformative energy asset. ContactsShale Gas Innovation & Commercialization Center (SGICC) Bill Hall, Executive Director, 814-863-4881 billhall@psu.edu Frac fluid biocide wins industry award
The Ben Franklin Shale Gas Innovation & Commercialization Center (SGICC) announced FyreRok Biofluids won the 3rd Annual Shale Gas Environmental, Health & Safety (EH&S) Award today. FyreRok, a Bellefonte, Pennsylvania, based company, was given the EH&S Award for its technology which develops a hypochlorous acid at well pad sites to use as a non-toxic biocide to treat water used in the hydraulic fracturing process. Bill Hall, Executive Director of SGICC commented, “The shale energy industry must continue to operate in an exemplary manner, exceeding stakeholder’s expectations in the environmental, health, and safety areas. This is integral to the industry being provided their social license to operate, gaining the trust and respect of the Commonwealth’s citizens, as well as the workers they employ and the communities where they operate. Ben Franklin’s Shale Gas Innovation and Commercialization Center is excited to once again shine a light on a Pennsylvania based company that is helping the industry achieve this standing.” FyreRok’s “FyreCide 45” is an EPA and FDA-approved biocide for the onsite treatment of water both pre- and post-frac. According to the company, it has been known for some time that hypochlorous acid is more effective than traditional biocides, but the challenge has come from finding a cost-effective way to use them in large scale, multi-million gallon frac jobs. The SGICC holds a competition in May in which each of the four winners received $25,000 of seed money to fund their projects. Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Original Source: http://www.oilandgas360.com/frac-water-biocide-wins-competition-for-innovation/ If local Marcellus Shale companies want to stay in business, they need to diversify and be very clear about why they exist, according to a report Thursday from The Klaber Group.
Prepared on behalf of the State College-based Ben Franklin Shale Gas Innovation & Commercialization Center, Klaber's report can be seen as both a cautionary tale and a potential lifeline for struggling businesses. In part, the report describes what most local oil and gas companies already know: Low prices of natural gas, natural gas liquids, and oil have forced upstream companies -- the ones involved in drilling and exploration -- to cut back on spending. This has had a huge impact on local small businesses who focus on drilling services. But the midstream business -- the market segment that takes gas from the wellhead to the market -- is booming, the report concludes. If companies want to grow, they need to take advantage of the "many growth opportunities for new technology adoption" in the midstream. The study doesn't exactly tell businesses how to redefine their services, but it does offer fundamental suggestions on how to find a niche outside of the upstream market -- and where to find useful information. “In the last decade, our region has experienced, first hand, a rapid expansion and a contraction of the natural gas industry," the study's author, Kathryn Klaber, said in a statement. "The supply chain companies that are built on a strong business model, and have diversified their products and services, are poised to benefit from the eventual rebound.” Klaber is the former president of the Marcellus Shale Coalition, and a consultant to the natural gas industry. Read the full report here. Matt Stroud is energy reporter for the Pittsburgh Business Times. Original Source: http://www.bizjournals.com/pittsburgh/news/2015/09/03/new-study-offers-potential-lifeline.html STATE COLLEGE, Pa.--(BUSINESS WIRE)--Amid a challenging business environment for the region’s oil and gas industry, the services offered by the Shale Gas Innovation & Commercialization Center (www.sgicc.org) have become even more critical. Using funds provided by the Pennsylvania Department of Community & Economic Development (PA DCED), SGICC commissioned a study on the evolving relationship between Pennsylvania-based entrepreneurs and the companies they serve in the industry. Go to http://www.sgicc.org/dced-grant-white-papers.html to access the report.
“This report has helped our future planning by validating the things we are doing well and highlighting the areas where we can continuously improve our services.” Given the historically low commodities prices, Pennsylvania-based companies are facing new challenges when introducing a new product or service into the upstream markets. This dynamic makes organizations with missions such as the SGICC even more critical, and challenges entrepreneurs to look for more diversified applications of their technologies – ideally resulting in stronger long-term viability. Bill Hall, SGICC Director commented, “This report has helped our future planning by validating the things we are doing well and highlighting the areas where we can continuously improve our services.” The report identified things that innovating companies need to do:
The Ben Franklin Shale Gas Innovation and Commercialization Center (www.sgicc.org), an initiative of Ben Franklin Technology Partners/CNP (http://www.cnp.benfranklin.org) is designed to harness innovation and new technologies as a means to maximize the economic return to Pennsylvania’s citizens from the various shale formations comprise part of the energy reserves of the Commonwealth. The Center also identifies, supports and helps commercialize technologies and early-stage businesses that enhance responsible stewardship of the environment while properly utilizing this transformative energy asset. ContactsShale Gas Innovation & Commercialization Center (SGICC) Bill Hall, 814-863-4881 Executive Director billhall@psu.edu Original Source: http://www.businesswire.com/news/home/20150903005128/en/Ben-Franklin%E2%80%99s-SGICC-Releases-Study-Technology-Adoption#.VhSc6BNVhBd |
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