3. Sources of Petroleum Inputs to the Sea
Natural seeps
Petroleum Extraction
Petroleum Transportation
Petroleum Consumption
These sources add annually (on average) 76,000,000
gallons of petroleum to the waters off North America
National 380,000,000 gallons are spilled to the sea worldwide
Research
Council 70% of petroleum release in oceans are from anthropogenic
of the sources
National
Academies Vast majority of petroleum consumption occurs on land
Report
2003 Rivers, waste- and storm-water streams are key sources of
petroleum to the marine environment
4. External Sources of Petroleum
Hydrocarbons
Point sources
Spills (vessels, platforms, pipelines, facilities)
Rivers
“Produced water”
Coastal refinery wastewater
Diffuse sources
National Natural seeps
Research
Council
Atmosphere on open seas
of the Coastal urban runoff
National Marine transport operations
Academies
Report Recreational boating
2003
5. Key Customer Segment
“Produced water”:
Discharged in off-shore oil-producing areas
Fracking creates large amounts of wastewater
Current energy exploration and extraction in US creates
Produced Water 15-20 billion barrels of produced water / year
Worldwide, estimates top 50 billion barrels
Energy companies pay between $3 – $12 to dispose of
each barrel of produced water
WHAT IS BTEX?
BTEX is the abbreviation used Produced water is usually treated to remove most free oil
for four compounds found in
petroleum products.
The compounds are benzene, Need to treat the remaining amount of soluble and
toluene, ethylbenzene, and volatile petroleum hydrocarbons
xylenes. BTEX average concentration remaining about 5mg/L
Allowable limit of BTEX in drinking water 1mg/L
6. What is the Problem We Solve?
• Our product contains the volatile petroleum
hydrocarbons (e.g. benzene) and subsequently
decomposes them either in-situ or off-site
• It can be used as the final remediation step in the
“produced water” clean up
• It can, in principle, turn “produced water” from
wastewater to drinkable water while treated on-site
• New laws are expected to cancel the Energy Industry’s
exception from the Clean Water Act, thus favoring
“new, self-contained, on-site water treatment”
• The current market for treating produced water is
estimated to exceed $4.3 billionfor next 5 years
7. What Partners Will We Need?
• Dealers: YES
–We need them to secure government contracts (AES)
–We need them to get access to the international marketplace
(Ultratech)
• Distributors: YES
–We need them to bring our first products to market (Spilltech)
• Co-developers: MAYBE
–NRC and/or NALCO as customers/co-developers of certain oil
remediation solutions
• Collaborators: YES
–Partner with emerging businesses in the water remediation
field with complementary interests (e.g. water desalination;
frack wastewater cleaning /recycling companies, such as
ALTELA)
8. What are the Risks
Dealers/distributors:
–They do not promote our product as needed
–They sabotage our product promoting other solutions that
bring them higher profit
Co-Developers:
– They claim ownership of our ideas/prototypes
– They put our technology “on the shelf”
• Collaborators
– They might not appreciate that further clean-up with our
product offers potable as opposed to just recyclable water;
–They might have conflicting interests due to other
partnerships with landfills, etc
9. Why will they Partner with You?
We Offer Innovative and Green Products/Solutions
We Address a Niche rather than the Whole Market
We Meet the Need of Anticipated Environmental
Regulations on the Energy Industry
We will Bring New Customers to Their Businesses
We will Grow Further Together
We will Help them Produce Truly Clean Water
We will Help Improve the Image of the Industry
10. Cost of Partnership
Dealer:
– We’ll need to sell the product to them at lower prices so
our profit margin is low
Distributor:
–We’ll need to pay commission fee on exclusive contract
Co-developer:
– We’ll need to share our know-how with them
Collaborator:
–We’ll need to share the cost of processing facilities
11. Income Statement for Business Model*
Income Year 1 Year 2 Year 3
Statement
Net Sales $4M $7.25M $10M
Cost of Goods $1.6M $3.2M $4M
sold
Expenses: Salary $1.2M $1.2M $1.5M
Expenses: Other $ 0.2M $0.3M $.5M
Total Expenses $1.4M $1.5M $2.0M
Net Income $1.0M $2.55M $4M
•This statement is based on very conservative estimates of
introducing a new product in a niche market; the market
segment is a multi-billion dollar one and it is growing fast; it
is anticipated that our company will grow very fast after the
3rd year sales
12. Revenue Chart
First year revenues:
20 SME of $100,000 sales/year= $2M
60
2 LC of $1M /year =$2M
first year revenues : $4M
50
Second year revenues:
75% retention of SME
15 SME of $150,000 sales/year= $2.25M
2 LC: $5M sales/year ( 40
second year revenues $7,25M $
Third year revenues: M 30
maintain the domestic levels with existing )
customers but expand international sales
to $3.5M
This will set us over $10M 20
Fourth year revenues:
Add new line of products for existing
market; expand into adjacent markets
10
(off-site remediation; water purification;
etc)
Revenues to reach $50M 0
Year 1 Year 2 Year 3 Year 4