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The World's Water

It takes 35 gallons of water to make one cup of coffee. Why? Because of all the water used to cultivate coffee beans. Similarly, it can take about 635 gallons to make one hamburger because of all the water required to grow feed for the cows.

The need for clean fresh water is increasing rapidly, too, as populations rise and standards of living improve around the world. In some places -- such as central California, the North China Plains, and parts of India -- the demand for water is already outstripping the local supply.

Because global water consumption is expected to increase by 40% over the next 20 years, water shortages may get more acute and widespread, spurring more reliance on desalination technologies, water reuse, and conservation. The results could have massive economic, ecological, and geopolitical consequences, creating investing opportunities in places you may never have considered.

Meet the analyst

Anna Davydova, CFA

Anna Davydova is a research analyst for Fidelity Investments. Ms. Davydova assumed her current position within the Equity Research division in May 2008 and covers the environmental services sector.

Ms. Davydova joined Fidelity in 2005 as an equity research associate following coal, oil tankers, small-cap energy services, and select renewable energy companies. After being promoted to equity research analyst, she assumed the full coverage of the renewable energy space, including solar, wind, and other clean energy stocks.

Ms. Davydova’s initial investment interest in the energy sector was sparked by her origins in Russia, a country with massive natural resources which continues to play an important role in the global energy markets today. However, her experiences while living in India and the U.S. drew her interest toward the environmental and alternative energy sectors as she recognized the global need for clean and sustainable solutions.

Ms. Davydova received a bachelor of arts degree in mathematics and economics from Wellesley College and is a CFA charterholder. She also sits on the editorial board of the Journal of Environmental Investing.

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In-Depth Coverage

Euromonitor International
Global Water Shortages Will Pose Major Challenges, September 13, 2010

CNNMoney
Water: The Most Undervalued Resource, April 13, 2010

The Economist
Water: Sin Aqua Non, April 8, 2009

Columbia Water Center
Water Scarcity: A Shared Problem with a World of Solutions, June 27, 2011

GE Global Research
Water Scarcity Around the World, February 5, 2010

Asia Society
Water: Asia's Next Challenge

European Commission
Water Scarcity & Droughts in the European Union

Videos

BBC World News America
Global Water Shortage Pt.1

Books

Planet Water: Investing in the World's Most Valuable Resource
by Steve Hoffman

When the Rivers Run Dry: Water—The Defining Crisis of the Twenty-first Century
by Fred Pearce

Organizations

Purdue Calumet Water Institute

Circle of Blue

Comments

Permalink Submitted by Alex Wrest on Sat, 10/27/2012 - 02:32

Why Don't you Just tern the salt water To Fresh clean water. That would increase the water supply 10x there are other ways two but that would be the best way to go about it.... Alexander Wrest

Permalink Submitted by Carey Butler on Wed, 11/21/2012 - 08:57

You are absolutely correct! There are even other technologies being held back that can take the water right out of the air! I have researched and debated this topic so much that it is coming out of my ears! Just like the Peak Oil (scarcity of oil) scam, so is this water thing.

Permalink Submitted by Abdulrahman Kotob on Fri, 11/16/2012 - 11:09

Well, OK.. But as for the 635 gallons, you need to consider that a cow can possibly make a huge number of hamburgers. What do you think?

Permalink Submitted by 100004637621895... on Wed, 11/21/2012 - 08:50

(This took me about 15 minutes to research). A single cow may produce as many as 1200 hamburgers. And, a dairy cow may produce over 1400 gallons of milk in it's lifetime: Which seems counter intuitive. McDonalds sells 200 billion hamburgers per year. The United States consumes around 400 billion gallons of "drinkable" water per year. I'm certain that my 15 minutes of research are sketchy, but something doesn't reconcile very well here. The "fun facts' are cute, but should be footnoted and sourced much more thoroughly and deeply. Especially if one is basing an investment decision on the information.

Permalink Submitted by Gary Chambers on Fri, 11/30/2012 - 00:53

Three Reasons to Invest in the Water Industry. Some call it, ‘Blue Gold’, others ‘The New Oil,’ but whatever name we use for it there is no substitute for water. During one of my many discussions with a friend on the topic of water, I posed this question. “If you had to stay in an empty room for one week, and pick one only one item to take with you, which item would you choose from this list: gold, cash, or water?” He thought hard,scratching his head trying to think of possible scenarios where he could keep both the cash and the gold, and be wealthy upon his exit . But I stood firm and insisted only “One,” He eventually had to conceded that water would have to be his choice, as without water there is no life, it is without second our most precious resource. These truly are exciting times we are witnessing, a natural resource transforming into an ‘economic good,’ a ‘commodity’ before our very eyes. These are the three significant reasons to invest in the water industry. Firstly, it’s a huge market that’s not going anywhere. ”The water business is the third-largest industry in the world, behind oil and gas production and electricity generation. (Nov 3, 2010, 2:43 pm EDT | By Chuck Epstein, Mutual Fund Writer) . That translates into almost a $495 billion dollar global market, of which 95 billion belongs to the U.S market. Secondly, there is diversification within the water industry, investment in water is not always strictly a pure water play. Its top three components that account for over 50 percent of the business are; waste management, industrial waste, and infrastructure. Thirdly, Malthusian economics are simple but alarming. It is estimated that by 2025 the global population will increase by 2.6 billion, and China’s population will have increased greater than the entire population in the United States. (The Big Thirst by Chris Fishman).

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