Producers to pump less oil and gas amid low prices
Wednesday, November 13, 2019
After pushing U.S. oil and natural gas production to record numbers, producers are beginning to pull back production amid low prices, according to The Wall Street Journal.
Some of the country’s largest natural gas drillers, including EQT Corp. and Chesapeake Energy, plan to make the sharpest production cuts. Simultaneously, oil-focused companies are promising to rein in spending and forecasting slower growth.
In spending and producing less, producers hope to see higher commodity prices and produce better returns to win back investors, who’ve become frustrated with the industry’s lackluster returns in recent years.
Learn more: The Wall Street Journal > Frackers to pump less oil and gas to push up prices
Leave a Comment
Marcellus & Utica Shale Well Map
Additional Shale Maps
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.