Freshwater's Supply Chain is Unlike that of Any Other Resource!

Freshwater is a resource like no other. While differences between freshwater and other renewable and non-renewable resources are many, freshwater's supply chain makes freshwater a most unique natural and renewable resource. Nature delivers freshwater in ways it doesn't do for any other resource. 
Freshwater's Current 3-Source Supply Chain

Source - willoughby.nsw.gov.au

3 sources of freshwater exist for most human settlements. These are:
1. Rainwater that naturally falls on the settlement
2. Freshwater transported from near and far locations  to the settlement, and
3. Locally obtained water, usually from a combination of sources located at ground level (e.g. rivers and lakes) and below ground (e.g. wells that tap the local water table).
Some locations do not, of course, have all 3 sources available to them -  but most do, because this 3-source approach was seen as the most prudent and dependable one.
Threat's to the 3-Source Supply
All three sources can be threatened today in a variety of ways for human settlements in different locations:
1. Climate change has impacted the frequency, amount and location of rainfall.
2. The ability to bring water from remote locations is threatened by both dwindling resources at the remote location and the assertion of communities along the transportation route to the freshwater being transported.
3. Continued extraction of groundwater has lowered water table levels, in some cases to depths that are difficult to access.
Rainfall - Resource delivery on a near-regular schedule

Source - diswaterdrams.com

Other than freshwater, nature delivers no other natural resource on a fairly regular schedule to locations where the resource may also be ingeniously available in bulk. 
Delivery of freshwater as rain was probably of little value while humans were migrating all over the globe. Rainfall's value only became evident about 10,000 years ago, when humans chose to settle down in one place (and grow the food they needed) instead of moving around in search of food. Humans, in a sense, became dependent on rainfall at the start of the agricultural age.
Rainfall Dependency
Once reliant on rain to grow their food, humans became subject to the impacts of any change in rainfall delivery frequency, amount or location. And it is, in large part, this dependency that is shaping a crisis in freshwater supply - supply of rain is simply too undependable.
The one unique feature that defines freshwater delivery is today the one unique force behind freshwater scarcity and water security.

Is SAFE DRINKING WATER the New OIL?

Analysts everywhere are eyeing the problems that humanity is having with safe drinking water supply, both in terms of quantity and quality, as possible new sources of large profits. "Water is the new oil" is the mantra of analysts seeking to publicize investment opportunities

The Global Water Industry

Source - snetglobalwaterindexes.com

The global water industry, about $360 billion in size, is the third largest industry in the world - behind petroleum and electricity. 
Globally, over 90% of water utilities are owned by governments. In Europe, 45% of utilities are privately owned with many owned and operated by publicly traded firms. In the US, only 10% of water utility companies are privately owned.
The opportunity to invest, of the kind that exists in the oil industry simply does not exist in the water industry.
Oil is NOT Water
Oil and water don't mix but they weigh about the same. Depending upon the type of oil and its density, 1 gallon of oil weighs 6-8 lbs, while 1 gallon of water weighs about 8 lbs. So, they are very similar in weight, but water is a resource that thrives on motion - water must always be moving. If held in a stagnant mode, water deteriorates quickly or simply evaporates or disappears into the ground. 
A Million Thirsts

Source - renalfellow.blogspot.com

Source - narrativeandotology.blogspot.com

Thirst is location specific. Each thirst reflects the unique cultural, human, industrial, agricultural, ecological and environmental issues of a location. The kind of pollution that may need cleanup is different in each location. 
The big similar solutions (like digging wells, building Dams, constructing aqueducts, etc) that supply the needs of a region have all seen their best days.
So how does an industry evolve such that it meets all the urgent needs? In three possible ways:
- Tap an existing global industry with a robust infrastructure available to support a variety of needs. Oil has just such an infrastructure today, but water does not.
- Create a global industry. It took over 75 years to go from individual oil wells serving a local need, to any oil well being able to serve a need anywhere in the world. Do we have 75 years and the billions to invest in building a global water industry?
-  Ignore "use, waste and demand" to focus only on supply. Desalination could fit this bill. Unfortunately, however, nearly all of the 15,000 desalination plants are privately owned but not publicly traded. Also, revenues from individual plants are so low that they are not viable candidates for stand-alone investment as water plants.


Thus, Water Cannot Be The New Oil - Those of us who envision participating in a 'market' in water, a market akin to the markets that exist for trading other natural resources, have a long wait ahead of us.

Am I Immune From Water Shortage?

Investing in real estate has always been about location, location, location. Water shortage too has a similar qualifier (all water problems and their solutions are local, local, local) that is compounded by the fact that no location is immune from water shortage.


A world rich in water - for some!
When currently used and  accessible water supplies are studied at a macro level, the conclusions might be:
- Approximately 50% of the world (the blue and grey areas in the map) does not have a water problem,
- If I reside in one of these water-adequate areas, I should not have to worry about water shortages, and
- If I live in the red, orange and green areas, I could experience water scarcity e.g.if I live in the southwest region of the US, then I could experience water shortages unless I have a way to transport water from outside to where I live or I choose to live in the vicinity of the right water transportation infrastructure.


The devil is in the details

Source - NRDC

A county-by-county map of the United states supports the macro-level conclusion that the southwest region of the of the US is prone to water shortages. However, assuming that predictions of Climate Change turn out to be accurate, the map says a lot more:
- 412 counties (marked in red) spread all over the US will experience water supply shortages and some of them are in water rich areas like Florida.
- Only 30% (929 out of 3141) counties would be immune from water shortages in the future i.e. the vast majority of the US population will need to deal with water scarcity by 2050. 


The water-immune are few in number!

Source - 

A map on global distribution of human population identifies that a very large percent of the global population will experience water shortage because of where they live.
In these areas, every city dweller knows that 24/7 supply of fresh water is unheard of today. Every city dweller also knows to plan their day around their need to stock up with water whenever it becomes available.

5.5 Billion people have experience with Water Shortage

80% have experience with water shortages
Image Source - atlas1. wikispaces.com

When the global population is tallied by where they live, nearly 80% of the people on Earth live on a near-daily basis with not having enough safe freshwater when they need or want it.
Faced with freshwater shortage, their options range between:
- Adopting the resigned attitude that justifies using unsafe readily-available water, and
- Arranging their daily schedule around the gathering of necessary amounts of safe freshwater.
For these 5.5 billion, water is a personal local challenge.
- The remaining 20%, nearly 1.5 billion people, mostly have water for the taking whenever they so desire.