New NASA studies show how the world is running out of water

Old_Joe

"Drought-stricken California is not the only place draining underground aquifers in the hunt for fresh water."

"Twenty-one of the world’s 37 largest aquifers – in locations from India and China to the United States and France -- have passed their sustainability tipping points, meaning more water is being removed than replaced from these vital underground reservoirs. Thirteen of 37 aquifers fell at rates that put them into the most troubled category."

“The situation is quite critical,” said Jay Famiglietti, senior water scientist at NASA’s Jet Propulsion Laboratory and the studies’ principal investigator.

And it’s difficult to see it getting better soon."

Washington Post Article

scott

Long ECL, DHR, although especially the former. I do think this is going to be a theme that isn't going anywhere and will quite possibly get worse. Both are long-term buy/holds, but I think Ecolab's mix of need-based hygiene/sanitation services makes for a particularly appealing long-term buy and forget stock. It is a dividend aristocrat.

"Ecolab is also seeing growing opportunities in California to help power plants, oil and gas companies and other heavy water users treat, conserve and reuse water. Its products, for instance, can help a hotel cut water use by a third, said Emilio Tenuta, the company's vice president of corporate sustainability.

California cities and urban water agencies face state orders to reduce water consumption by 8 to 36 percent."

http://www.mprnews.org/story/2015/05/20/water-pentair-ecolab

"Fund managers from T. Rowe Price, Janus, and Mairs & Power are among those that have increased their stakes in firms such as Ecolab Inc, Roper Technologies Inc and Flowserve Corp that make smart meters, efficient heaters, and software that helps restaurants, hotels and homeowners cut back on their water usage.

"Shares of Roper Technologies Inc, which makes leak testing and flow measurement equipment, are up nearly 13 percent for the year. Shares of Ecolab, meanwhile, which among other businesses makes commercial laundry systems that cut water consumption by 40 percent, are up 10 percent for the year."

"It's clear that water scarcity is only going to increase, and we think that there will be a several-year investment cycle as homes and businesses look at ways to maximize the water they do have," said Pete Johnson, an analyst at the $4.3 billion Mairs & Power Growth fund."

http://uk.reuters.com/article/2015/06/05/us-water-funds-analysis-idUKKBN0OL0CA20150605

Ted

@Old_Joe: Simple answer, move to Chicago !
Regards,
Ted

Old_Joe

@Scott: thanks- I posted that primarily with you in mind because of your previous thoughts in this area.

Old_Joe

@Ted:

Anna

Remember all the matinee cowboy movies that were staged around one landowner owning the upstream land and controlling the amount of water the downstream farmers got in order to sell the water to them as well as other similar plots using water rights/ownership? if you do, it should be food for thought.

Old_Joe

@Anna- that very scenario is now being played out here in CA even as we speak.

Anna

Old_Joe said:

@Anna- that very scenario is now being played out here in CA even as we speak.

I'm on the coast of WA state between Seattle and Canada. We are having another summer with very little (almost no) rain. As you know I should be wringing out my feet, not moistening them.

hank

Fascinating that we're running out of water - but swimming in oil.

"The New Yorker" featured a fascinating in-depth article on the Colorado River 3-4 weeks ago. Don't know if it's available on line or not. What struck me was how heavily reliant so many states are on its supply and the way in which agreements have been negotiated among rival states over the years.

As I recall, the river is completely dried-up before it can reach its once natural outlet (The Gulf of California). There was one episode decades back where Arizona's Governor sent National Guard troops to the border in some kind of showdown with California over water rights.

Here's the link: http://www.newyorker.com/magazine/2015/05/25/the-disappearing-river

Old_Joe

Yes, every drop of the Colorado, and then some, is "spoken for". It's been many years (at least twenty, probably more) since there was any left over to flow into the gulf.

Dex

We can move oil, gasoline and natural gas around the country yet moving water from flood areas is a problem??????????????????????????????????????????????????????????????????????????????????????????????????????????????

Old_Joe

Energy pipelines are very small in comparison to water pipelines. Natural gas is compressed, but water, to be worthwhile to move, would require huge amounts. The pumping infrastructure would also be a major factor. To get a feel for this, you should check out the existing water infrastructure here in CA, which delivers water from the north (when we have any) to the south.

Finally, where is all of the water going to come from? I doubt that Canada and Michigan would be thrilled to have the Great Lakes starting to be drained. Using underground aquifers would certainly not be very smart. As far as "floods", a water source has to be dependable all year round- not just when a flood occurs.

Dex

Old_Joe said:

Energy pipelines are very small in comparison to water pipelines. Natural gas is compressed, but water, to be worthwhile to move, would require huge amounts. The pumping infrastructure would also be a major factor. To get a feel for this, you should check out the existing water infrastructure here in CA, which delivers water from the north (when we have any) to the south.

Finally, where is all of the water going to come from? I doubt that Canada and Michigan would be thrilled to have the Great Lakes starting to be drained. Using underground aquifers would certainly not be very smart. As far as "floods", a water source has to be dependable all year round- not just when a flood occurs.

So we can't build bigger pipes?????????????????????

Flood waters - it happens in the USA near the Miss. River.

A system of reservoir from the flood areas e.g. Miss. river to California would not be too difficult to envision.

We can put a man on the moon but can't engineer a way of getting flood water to CA?

JohnChisum

Rainwater harvesting is a good way to supplement a water supply. It would require more than a typical rain barrel though to hold it. Some localities have laws that prohibit rain harvesting.

I highly recommend it and I do it. We have a 8500 gallon tank that holds rainwater collected from our roof. We don't drink it but it works for everything else.

Derf

JC, I think they call that a cistern. Quite the deal many years back & would be worth a look see today. I'm thinking that would relieve most of the water shortage.
Derf

Dex

hank said:

"The New Yorker" featured a fascinating in-depth article on the Colorado River 3-4 weeks ago. Don't know if it's available on line or not. What struck me was how heavily reliant so many states are on its supply and the way in which agreements have been negotiated among rival states over the years.

Same thing in the south with Ga., Al, Fl. with the Chat.

JohnChisum

You are right @Derf. While we get rain at our location we do have drought periods including now when it hasn't rained significantly for the last several months due to the El Niño.

Some of those swimming pools in the back yards could make excellent cisterns by covering them.

Old_Joe

"So we can't build bigger pipes?????????????????????"

It will be fascinating to watch the other forty-nine states step up in Congress and tell how enthusiastic they are about helping to pay for shipping water to California. And let's see now, as long as we're going to do that for CA, how about we take care of every other part of the US that's short of water as well? What's so special about CA, after all?

THERE AIN'T ENOUGH MONEY IN THE WHOLE UNIVERSE TO PAY FOR THAT KIND OF THING.

bee

“Water, water, everywhere,
And all the boards did shrink;
Water, water, everywhere,
Nor any drop to drink.”
― Samuel Taylor Coleridge, The Rime of the Ancient Mariner

Time for NASA's research funding to be spent on technologies that step up and desalinate the Pacific's briny abyss.

We're great at getting neurotic...let try getting Aquatic.

drinkseawater

scott

Old_Joe said:

"So we can't build bigger pipes?????????????????????"

It will be fascinating to watch the other forty-nine states step up in Congress and tell how enthusiastic they are about helping to pay for shipping water to California. And let's see now, as long as we're going to do that for CA, how about we take care of every other part of the US that's short of water as well? What's so special about CA, after all?

THERE AIN'T ENOUGH MONEY IN THE WHOLE UNIVERSE TO PAY FOR THAT KIND OF THING.

There has been some discussion of railroads bringing water to California, but I just don't think that's feasible.

http://www.cnbc.com/id/102640638

Additionally, if it gets to the point where we have to discuss as a nation that we have to start figuring out a way to send water by rail to California... geez.

JohnChisum

Instead of spending money on a high speed train, it might be far beneficial to use it for desalination plants or water infrastructure.

Dex

Old_Joe said:

"So we can't build bigger pipes?????????????????????"

It will be fascinating to watch the other forty-nine states step up in Congress and tell how enthusiastic they are about helping to pay for shipping water to California. And let's see now, as long as we're going to do that for CA, how about we take care of every other part of the US that's short of water as well? What's so special about CA, after all?

THERE AIN'T ENOUGH MONEY IN THE WHOLE UNIVERSE TO PAY FOR THAT KIND OF THING.

Really????????????????????????????????????

It isn't just for CA. Think about the states along the way that need water from the northern Miss. to CA. e.g. AZ, NM, CO, NV

Also, the plain/farm states are using aquifer water for their fields.

Dex

scott said:

Additionally, if it gets to the point where we have to discuss as a nation that we have to start figuring out a way to send water by rail to California... geez.

Doesn't Perrier do that already?

JohnChisum

Since this is a investing forum, perhaps this is a wake up call to invest in companies involved in desalination plant construction.

http://www.nanalyze.com/2014/09/investing-in-desalination-companies/

http://www.nanalyze.com/2014/10/10-more-desalination-companies/

Edit to add link.

Edmond

2,000 years ago Roman engineers constructed aquaducts to bring water to cities throughout the Empire. Some of these aquaducts traversed hundreds of kilometers.

The Roman engineers did not have motorized vehicles, satellite imaging or instant communications. All they had, besides their training, was the sweat of beasts and men. -- And of course, their rulers had the political will to employ and harness the talent and muscles needed to accomplish these feats.

Solutions to CA's water problems (whether desal plants, large-scale overland conveyance, overhauling stupid water-use laws in CA, etc) are do-able. And no, it won't be free. Nothing of substance in this life is. What is/will be needed is the political will to act.

Old_Joe

I am well aware of, and actually in awe of, the Roman engineering triumphs. Rome, however, is in no way comparable to California with respect to water needs. Some of the comments here simply betray an ignorance of the requisite scale necessary for effective relief. Casually suggesting that large-scale import of "flood water", which is intermittently available at best, over the Rocky Mountain and the Sierra mountain ranges, from halfway across the United States, unfortunately fails to appreciate the scale and expense of the construction that would be required, or what the cost of that water would be if based upon the delivery expenses.

We cannot even find the will or the finances to repave the highway system or refurbish the bride infrastructure built by Dwight Eisenhower, never mind the colossal commitment that would be required for such a project.

JohnChisum

"We cannot even find the will or the finances to repave the highway system or refurbish the bride infrastructure built by Dwight Eisenhower, never mind the colossal commitment that would be required for such a project."

I would suspect that most people would appreciate the government getting such a project underway. It's better than the wasteful projects we have seen over the years. But, as you say @Old_Joe, the political will is severely lacking.

Then there is the NIMBY attitude that would have to be fought. I could think of far worse things in my backyard than a large water pipeline.

davidrmoran

Desalination takes considerable energy, and transport likewise, costs aside. And there is zero chance of funding it publicly. Better to move and let the SW desert revert, haha. Plenty of water in parts of Ohio and the Northeast. Maybe prez Trump will have an idea (GOP field has gone from clown car to clown bus to now clown train).

Ted

@MFO Members: (Click On Article Title At Top Of Google Search) "Water Stocks How To Invest"
This article is a Q&A With Matt Sheldon, Co-Manager Calvert Global Water Fund (CFWAX) from 6/2/14.
Regards,
Ted
https://www.google.com/#q=Water+Stocks:+How+to+Invest+-+Barron's

M* Snapshot CFWAX:: http://www.morningstar.com/funds/XNAS/CFWAX/quote.html

Lipper Snapshot CFWAX: http://www.marketwatch.com/investing/fund/cfwax

CFWAX Is Ranked #3 In The (NR) Fund Category By U.S. News & World Report:
http://money.usnews.com/funds/mutual-funds/natural-resources/calvert-global-water-fund/cfwax

Bloomberg Article "Water ETF's Are Smarter Than They Look"
http://www.bloomberg.com/news/articles/2014-09-03/water-etfs-are-smarter-than-they-look

"The Best Water ETF's":
http://etfdb.com/commodity-etfs/how-to-buy-the-best-water-etf/

expatsp

Any one have thoughts on Veolia, VEOEF, in the water space? @Scott?

I'll bet there are some good Israeli companies too:
http://www.nytimes.com/2015/05/30/world/middleeast/water-revolution-in-israel-overcomes-any-threat-of-drought.html

If Israel, which is mostly desert and full of subsidized, water-intensive agriculture, can get on top of this California should be able to too,

JohnChisum

Another point to think about, farmers in California are getting hit with restrictions now. That should cause food prices to go up if things get worse. Not a good scenario what with an economy on shaky legs.

I see more and more agriculture investing in low water usage irrigation systems. Similar to the drip lines already available. Australia, which deals with drought all the time is using these systems quite a bit these days in large greenhouse operations. The lack of water may push the U.S. in a similar direction.