US oil surplus creates problems for industry
Tuesday, February 9, 2016
At the Nymex terminal complex in Cushing, Oklahoma, crude oil storage tanks were 88 percent full at the end of January, MarketWatch reports. The tanks hold 73.014 million barrels of crude oil.
Cushing is the New York Mercantile Exchange’s crude contract delivery point. It is also a blending station.
The U.S. oil surplus has forced prices down. Crude oil continues to come from the Gulf Coast, by rail from Canada and by domestic oil production. According to the source, if supplies grow too much, they will not be able to be moved from storage tanks to pipelines easily.
Via: MarketWatch > Oil industry woes grow as storage levels hit ‘critical level’
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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.