Independent US shale gas stocks jump in response to EU deal for more LNG
Wednesday, April 6, 2022
Independent U.S. shale gas producers’ shares have jumped since Russia invaded Ukraine in late February and many hit 52-week highs after the White House pledged 50 billion cubic meters per year of gas exports to Europe by 2030, according to S&P Global Market Intelligence.
The agreement between the U.S. and EU marked a shift for natural gas producers and LNG terminal operators, Sanford C. Bernstein & Co. analyst Neil Beveridge said. “In the near term, increased European LNG demand will result in higher prices and demand destruction in Asia to balance the market through higher prices.”
Haynesville Shale producer Comstock Resources Inc. is in one of the best positions to supply the terminals. The company is not limited by outbound pipeline capacity concerns like similar operations in the Marcellus Shale. As a result, Comstock is one of the biggest winners in the share price rise.
Learn more: S&P Global Market Intelligence > US shale gas stocks climb on EU deal for more LNG after Ukraine invasion
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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.