Low demand for natural gas prompts producers to rethink plans
Thursday, January 1, 2015
There hasn’t been a huge demand for heating fuel so far this winter, so it isn’t surprising that the benchmark natural gas price has fallen about 30 percent this month, according to Houston Chronicle.
At one point this year, it was more profitable for companies to drill amid declining oil prices. In the near future, some oil producers will likely cut back on spending, producing and labor. If the current patterns in the oil and gas market continue, the results will be long-lasting.
In addition, if the downturn in gas and oil prices continues, effects will be felt by other producers and service companies, who will have to lower their rates to match the low demand.
Via: Houston Chronicle > Natural gas drop is ‘double whammy’ with oil’s fall
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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.