Halliburton Complains of Fall in Fracking Profits because of Bean Shortage
Friday, June 08, 2012
A shortage of beans from India is cutting into Halliburton’s profits from hydraulic fracturing, according to the company.
Among the ingredients that make up the fluids used in fracking wells is guar gum, which is derived from beans, most of which are grown in India. Demand for guar gum, which is also used as a thickening agent in food production, has increased significantly with the rise of fracking to extract natural gas from beneath the surface, and Indian farmers have struggled to keep up with orders for their crops.
As a result, the price of guar beans has skyrocketed, forcing Halliburton to spend more on fracking supplies. The company estimates its profit margins this quarter will shrink twice as much as it had expected due to the guar problem.
To Learn More
Halliburton Provides Operational Update (Halliburton)
Halliburton Q2 Hit by Costly Indian Bean Shortage (by Braden Reddell, Reuters)
Education Center (Independent Water Testing)
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