Natural gas futures trade higher amid supply concerns
Friday, April 29, 2022
Natural gas prices were trading higher early Friday, pushed higher by supply concerns amid a relatively volatile market, according to Natural Gas Intelligence.
The June Nymex contract was trading around $6,948/MMBtu, up 6.0 cents from the previous settlement, Friday morning.
In the short-term outlook, prices changes have seemed more random; however, long-term projections have held steadier because end-of-season supply concerns remain intact.
On Thursday, the U.S. Energy Information Administration reported a 40 Bcf injection into U.S. natural gas stocks during the week ended April 22, which was in line with estimates and lighter than the five-year average. Storage inventories were lifted to 1,49-0 Bcf, which is 17% below the five-year average of 1,795 Bcf.
Learn more: Natural Gas Intelligence > Natural Gas Futures Called Slightly Higher as Supply Levels Still Seen Lacking
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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.