EQT decreases capital spending due to service provider cuts
Sunday, April 26, 2015
EQT Corp.’s capital budget has been lowered as a result of cuts made with its service providers, Pittsburgh Business Times reports.
The company’s original budget was $2.5 billion, but in February, lowered that number to $2.05 billion due to low oil and gas prices. Now, the company has brought its capital budget down to $19 billion.
EQT plans to spend most of the budget on exploration and production. The company will continue its Utica test well in Greene County, Pennsylvania, and is planning to drill a second test well in Wetzel County, West Virginia.
Via: Pittsburgh Business Times > EQT Corp. reduces capital spending; may seek further cuts from service providers
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What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.