U.S. oil and gas industry surviving against odds
Friday, September 16, 2016
The U.S. oil and gas industry has experienced its share of tough times recently, including dropping rig counts and layoffs of workers. However, it continues to hang on led by the Marcellus and Utica shale plays.
According to the Financial Times, the U.S. averaged 22.63 billion cubic feet per day from the Utica and Marcellus shales through August. Production was up 2 percent in August — the most since February’s all-time high of 22.78 billion cubic feet per day.
Although earlier government studies found that combined gas output from the Utica and Marcellus shales would decline, producers have maintained volumes by tapping inventories of drilled but incomplete wells and burrowing deeper wells that yield more gas, according to Metal Miner. Technological developments have allowed producers to increase output through efficiency.
Learn more: Metal Miner > Resilience: U.S. tight oil, gas far from being in decline
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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.