US oil, gas permitting hit record lows in April, may be recovering in May
Thursday, May 21, 2020
Although oil and natural gas permitting hit record lows in April, permitting may already be recovering, according to Natural Gas Intelligence.
Analysis by Evercore ISI indicated oil permits climbed 19% from the final week of April to 166 during the first week of May. The Permian Basin accounted for the most permits with 100 — up from 35 a week before.
Simultaneously, natural gas permits increased to 39 — a 64% increase week-over-week — led by the Haynesville Shale with 15 permits.
Learn more: Natural Gas Intelligence > U.S. oil, gas permitting at record low in April, but strengthening seen in early May
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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.