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Tudor Pickering & Holt Partners Chairman Joe Foster discusses his investment in oil-field services.
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How beautiful -- swat at Rice University -- -- welcome back to the special addition of money.
And our series open for business sign here in Houston Texas right now and I can tell you it is just buzzing with energy literally and figuratively.
The latest trend the growth potential in a new technology.
That supplies water to shale drilling my next guest has just taken a state.
In this developing area and joining me now -- -- Fox Business exclusive.
Phil Foster chairman of -- -- and holds partners private equity group that focuses on doing deals in the energy space which I think is incredibly clever.
Obviously -- you just made this investment you're excited about this DL.
What's appealing to -- about you I -- -- feeling about it to you if you're up.
Well moving water around and they all we have this guy never really big business as a result of all the bracket that's going on in the shale plays and in the -- Iraq plays -- throughout the country.
And the investor you're talking about -- -- energy services.
And what they.
It started -- business to do these transport water from the wells.
And the other sources that existed primarily in the permanently Permian Basin at this time.
In the past.
This has been done.
Truck.
They would find the source of water either well or upon and fill -- up -- tank.
-- truck and call it.
2030 miles through a location.
To be used in in fracking a well.
What -- has done is develop a portable type system so that they can drill a well we're water is.
That they can then.
-- Portable pipeline one that has net connections.
So that in a very short period of time they can have a -- -- -- fifteen to thirty miles long.
Between the you have to sort of water and they get used to the water at the -- hundred locations.
It's such an interesting investment idea because it's it's akin to you know when -- -- wants to invest in oil -- they don't wanna -- the oil companies are they going to oil field services they figure people are going to be out there drilling.
Do you think that that's the best way to sort of -- attack the trend in shale and in fracking is to maybe go for these tangential plays that make it happen.
Well that's a good way.
Our our fund that invests in -- the operations industry in operations.
And oilfield services we consider this to be able to service -- project and we think there's good good good returns we've made it all three of those sector -- Yeah are you worried about regulation coming down the -- we've been talking about it all our here and it does seem like it's ramping up.
It's got to be concern.
Well this is the regulatory friendly compared to.
Trucks transporting.
Tons of water over the country roads and who were truly made -- -- which excuses.
This can be -- the line can relate sort of out of sight.
And create -- real hazard to the environment.
The survey fracking -- I mean a big crack down on -- meat industry then you know they're not -- -- -- support industries you have to be worried about their regulation as it pertains to you know the mean business you're supporting.
Look -- -- to -- we have to be concerned about yeah.
But the benefit to fracking.
Are significant.
Compared not using -- And there.
What we're trying to do is make tracking more -- -- with this -- district.
-- yeah.
What are the kind of deals are you out there looking -- can you give us a hint what industries therein are -- -- its energy and as -- focus but what would you like.
-- here.
We.
Are look at and it peaked.
Company that.
You know -- also in the Permian Basin.
They've been very successful going handle -- And here's an example again about.
Water this is -- water used for tracking this -- water that is produced along with Theo.
And that we can make get a 5200 barrels a day of oil move along with it we get about a thousand.
Barrels of water.
So we have to figure out ways to dispose of -- water now.
In this instance we can't -- -- back into the ground and facility existing -- forward what the fact that we have a way to deal with water disposal.
Makes its an investment that -- we're gonna make.
Very -- just say we're gonna have to file these investments thanks so much for coming on okay.
