Slowdown predicted for natural gas production in 2020
Monday, December 30, 2019
Marcellus and Utica shale gas producers had a record year in 2019, as Ohio, Pennsylvania and West Virginia accounted for one-third of U.S. natural gas production, according to WSKG. However, a slowdown is being predicted for 2020.
As Marcellus and Utica shale drillers produced 30 billion cubic feet of natural gas in 2019, they drove down prices to about $2 per million British thermal units. The oversupply of natural gas not only drove down prices but left companies looking for markets to sell it.
Due to low prices and limited markets, many companies are pulling out of the Marcellus and Utica shale plays, and in other parts of the country, companies are burning off gas rather than selling it.
Demand is expected to wane in 2020, leaving companies to choose between burning gas off, putting it back in the ground or cutting production if there’s no more storage.
Learn more: WSKG > Natural gas production heads for slowdown in 2020
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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.