Natural gas prices keep dropping, despite record demand
Monday, August 19, 2019
Despite U.S. natural gas demand reaching an all-time high, and expected to keep rising, prices are falling, according to Hellenic Shipping News.
Last week, U.S. gas futures collapsed to a three-year low, while spot prices were on track to post their weakest summer in over 20 years. Simultaneously, demand is is rising.
Incidentally, so is gas production is at an all-time high and expected to keep growing. Analysts believe the natural gas market is not trading on demand fundamentals because supply growth continues to outpace increasing consumption.
Learn more: Hellenic Shipping News > U.S. natural gas demand is at record — and prices keep dropping
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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.