The acute strain on water supply is accountable to its versatile use in producing food, hydroelectricity, industrial goods and innumerable other areas ranging from paper making to refining oil. Most of the water used comes from land not oceans, which is only 3% of the total available. However, it’s not the quantity of water that is diminishing, it is the quality. Pollution is severely affecting the usability of water. Another issue is the distribution of water – some regions suffer floods, and some witness droughts. This makes it an accumulation of local problems, not a global problem – there has never been a global drought. Places with aquifers (such as India) for instance face even higher problem of drought as the farmers rely primarily on this source. Another rising issue is growth in ‘Chindia’. Political and economic developments in china for instance increased average consumption from 2100cal in 1977 to 2250cal in 1978, and this has been climbing ever since. Chindia’s daily caloric intake is expected to increase by 1.8 trillion calories, assuming constant population. Even the nature of food consumed impacts change in water usage – water needed per calorie of plant (274cc) and per calorie of meat (2740cc).
The good news is that technology can solve our woes by purifying and relocating water. We could desalinate water using distillation and reverse osmosis, or transport drinking water through the Mediterranean Sea. But for this we require energy – even the most efficient desalination process adds about 9000kWh/yr, just about 15% less energy than consumed by the typical US household! The scarcity of water in short can be viewed as an extended result of scarcity of energy required to clean or transport water – energy and water supply are inextricably linked. Majority of desalination capacity and requirement is then in the Middle East – oil rich and short of fresh water. Energy crunch is magnified by the projected increase in energy consumption in Chindia – when compared to OECD countries, there’s potential for almost 83-95% growth in energy consumption. For the present, Wind energy seems to be the most sensible option until controlled fusion is developed.
Consequences and solution
Currently 54% of the world’s fresh water is being used in a given year, but if population grows at 77m a year as forecasted, 90% of the world’s fresh water will be in use by 2025. Macro solutions to water crises – widespread desalination and transportation – are given serious thought. Most straightforward way of improving water management is to replace and build new pipes, pumps, filters, etc. 34% of the Chinese and 21% of Indians are yet to see improved water source - pipes and faucets, etc. Chinese government is scheduled to spend $125bn over next 5yrs to improve Chinese water facilities.
In US on the other hand, the problem is not lack of infrastructure but that of quality. Money spent on fixing and replacing leaky pipes can reduce the current leakage of water, which is almost 20%. An innovation in water management is the closed-loop system where water used in industries is treated and reused, instead of discarded. Contractors managing this have potential to make hefty profits. In short both water filtration and the infrastructure supporting it (pipes, pumps, valves, etc.) look enticing to investors.
Companies positioned to benefitWater Watts Technologies (WTS)Layne Christensen Company (LAYN)Tetra Tech (TTEK)
ITT Industries (ITT)
Aqua America (WTR)
Veolia Environment (VE)
