Energy companies hope for gas prices to rebound
Monday, November 3, 2014
Gas prices have plummeted as much as $20 or more recently. As Pittsburgh Post-Gazette PowerSource reports, some oil and gas company executives are hoping for a cold winter that will bring prices up, but temperatures as low as last winter’s might not be in this year’s forecast.
The slump in natural gas prices may be offset by the addition of pipelines in the future, which will provide more room for the transportation of gas. Also, deals like the one that Chesapeake Energy Corp. and Southwestern Energy Co. made in mid-October will help companies put themselves in a better financial position.
From Pittsburgh Post-Gazette PowerSource:
“Still, while gas prices and stock prices have taken a dive, analysts expect the situation will correct itself, and judging by some companies’ recent deals, the drillers agree.”
Via: Pittsburgh Post-Gazette PowerSource > Will winter rescue gas stocks and prices?
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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.