Shale oil drilling to slow down while oil prices drop
Wednesday, December 17, 2014
Crude oil is well below $60 a barrel, and experts predict that some companies will slow production down in the short term while prices are low, but if low prices continue in the long run, companies may abandon their drilling plans, according to The Intelligencer Wheeling News-Register.
Data from ODNR shows increased production numbers for both natural gas and oil in Ohio’s Utica Shale amid the sharp price drop in crude to a decrease in consumption in Europe and Asia and increased production in Libya.
Several energy companies are changing their plans to keep in pace with crude oil prices. PDC Energy has wells in Ohio, but the company isn’t planning to drill in the state in 2015 because of falling oil prices. ConocoPhillips cut its budget by 20 percent and BP has announced a $1 billion restructuring plan that could leave many without jobs.
Even though oil drilling is projected to slow down, natural gas drilling and pipelines will more than likely continue to operate as they have been.
Via: The Intelligencer Wheeling News-Register > Shale Output May Drop As Oil Prices Plunge
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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.