The Water Exchange for the Energy EcosystemTM
Sourcewater, Inc.
Joshua Adler, CEO
josh@sourcewater.com
www.sourcewater.com
Developed at
Sourcewater is the first online marketplace
for trading and recycling water
for energy production.
Developed at MIT.
is a marketplace
We match SUPPLY and DEMAND
for WATER and WATER SERVICES
Water Supply
Water Demand
Matches Water Sources, Uses & Transport
Water Trucking
Companies
E&P Produced Water
Completions
E&P Freshwater
Treated Water
Disposal
Water Transfer
Companies
Treatment
Freshwater Flows
Water Utilities & Pipelines Farms, Ranches, Landowners
Non-Freshwater Flows
Farms
Sourcewater is Live
1.15 Billion BBL H2O Listed
Over 100 Registered Users, Trading Now
Founded @ MIT: January 2014
Launched: April 2014, Appalachia
Sourcewater Advantages
Reduce #1
Operating
Cost
Ensure
Supply
Chain
Minimize
Freshwater
Use
JANE Production Manager, Needs Wastewater Disposal




HAS
Water Disposal+Hauling is #1 Cost
Low Energy Prices Force Efficiency
90% goes to Disposal Wells
Best Economic & Environmental
Option is Reuse/Recycling
150,000 BBL
Flowback for Disposal
Cost $5 - $20/bbl
Jane has 150,000 BBL Flowback
JOE Energy Completions Manager: Needs Water
NEEDS
150,000 BBL
Per Well Completion
Cost $3-$5/bbl




70% in Water Stressed Areas
Sources Hard to Find, Unreliable
Water Delay Costs $500k/Day
No Need for Freshwater
Joe needs 150,000 BBL Water
The Solution: Sourcewater
10%
25%
Reduction of
CapEx!
Reduction of
OpEx!
Jane pays Joe to Recycle instead of Dispose
Jane saves $3 - $10 / bbl
Joe saves $3 - $10/bbl
Recycling Works!
JOE
Completions
Manager
Needs 150k BBL/Well
Freshwater: $.50/BBL
Transport: $2/BBL
Water Cost: $375k
Jane pays Joe $2.00/BBL
to Recycle her Flowback
Jane saves 3 x $100k/Well
Joes pays:
Transport: $1/BBL
Treatment: $1/BBL
Receives: $2.00/BBL
Joe saves $375,000/Completion
Saves 5%-10% of
Total Completions Cost
& Up to 25% of Production Cost
JANE
Production
Manager
Has 150k BBL Flowback
From Three Wells
Disposal: $2/BBL
Transport: $2/BBL
Water Cost: $600k
Sourcewater Helps E&P Buyers
 Cut Water Management Cost – #1 OpEx for Energy Producers
 Cut water hauling distance
 Discounted same-day and advanced fares
 Find low cost non-freshwater sources, get paid to recycle
 Eliminate take-or-pay obligations
 Ensure Supply Chain Against Disruptions
 Save Time and Improve Results (replace phone calls w/ Internet)
 Monetize Excess Capacity
 Minimize Environmental & Community Impacts
Sourcewater Helps Water Sellers & Services
 Max Utilization & Profitability (sell the last seat on every flight)
 Cut Sales & Marketing Cost (all buyers in one place)
 Ensure Fair Value
 Enable Financing & Underwriting (price = if, where, how much)
 Spot & Futures Market = Less Risk (safety, hedging, backups)
Sourcewater Helps the Environment
Consumption
to Recycling
Seismicity
& Water Loss
Valuable
& Findable
Conservation
Investment
Innovation
Community
Environment
Infrastructure
Markets Work!
Market Price Incentives
 Optimal Resource Allocation
 Investment in Supply & Innovation
 Substitution (non-freshwater)
 Conservation (efficiency)
Free to Join Sourcewater.com!