Oil production cut extended to March
Wednesday, May 31, 2017
OPEC and other oil-producing nations have extended their output cuts for nine more months to prop up prices, according to PennEnergy.
The agreed on reductions of 1.8 million barrels a day will stay in place until March, OPEC and non-OPEC ministers decided last week.
The limited-production alliance between OPEC and non-OPEC countries faces competition from U.S. shale producers. Many drillers have returned to the market since crude prices have risen to over $50 a barrel. The continued upswing could increase supplies and push down prices as even more are set to resume operations.
Learn more: PennEnergy > The Latest: OPEC, other nations extend output cut to March
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Shale FAQ
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.