Amid higher prices Pa. shale gas permitting declines 52% year-over-year in July
Friday, August 20, 2021
Despite natural gas futures prices rising to $4/MMBtu, the highest price in over two years, permits issued to Pennsylvania shale gas drillers declined 52% year-over-year in July, according to S&P Global.
Pennsylvania’s top five producers — EQT Corp., Cabot Oil & Gas Corp. Chesapeake Energy Corp., Range Resources Corp. and Southwestern Energy Co. — all saw double-digit percentage drops in new permits when compared to July 2020. EQT’s cuts were the highest at 85%.
However, not all drillers are sticking to this capital-hoarding strategy. New York’s integrated National Fuel Gas Co.’s drilling unit, Seneca Resources Corp., received six permits to drill in July in Tioga County, which compares to no new permits a year ago. Furthermore, National Fuel has received 33 permits to drill through July of this year, nearly doubling the 18 permits it received in the first half of 2020.
Learn more: S&P Global > Despite $4 gas, Pa. shale permits drop 52% YOY in July
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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.