Big Oil Perfected Sideways Drilling. A Startup Wants to Do the Same With Nuclear Waste
Deep Isolation and Halliburton received approval from Texas regulators to test a method for storing nuclear waste in deep, narrow boreholes. The startup aims to use sideways drilling to place waste in stable bedrock layers, avoiding contact with water sources. The U.S. currently has over 100,310 tons of nuclear waste, with an annual increase of 2,204 to 2,425 tons. Deep Isolation's system, developed with academic and government partners, could store waste from reactors for up to a decade.
How this was made
The 30-second read
Why it matters
The approval introduces a new potential revenue stream for Halliburton's drilling segment, though the pilot's scale is small and success uncertain.
Market read
A niche regulatory approval that may benefit Halliburton modestly; limited broader market impact.
What to watch
Regulatory hurdles beyond the permit, public opposition to nuclear waste drilling, and competition from traditional geological repositories.
Background
Deep Isolation, a startup, aims to store nuclear waste in deep horizontal boreholes, partnering with Halliburton for drilling expertise. The Texas Railroad Commission's permit is the first regulatory green light for this approach.
Ticker impact
Texas Railroad Commission approved a permit for Deep Isolation's nuclear waste drilling project, with Halliburton providing drilling expertise.
likely modest upside as the market prices in new service opportunity
The permit is a new regulatory approval linking Halliburton to a novel nuclear waste storage method, but the project's scale is limited and still experimental.
Market effects
Could spark interest in oilfield services applied to nuclear waste storage, but broader impact on energy sector remains limited.
Texas energy services market may see modest activity boost.
Limited to niche nuclear waste management niche; not a macro driver.
Counterpoint
The project is experimental and may never scale, so any upside for Halliburton could be fleeting.
Key entities
- CompanyDeep Isolation
Startup developing deep horizontal borehole nuclear waste storage.
- CompanyHalliburton
Oilfield services firm providing drilling expertise for the project.
- RegulatorTexas Railroad Commission
State agency that granted the drilling permit.
