Global oil prices expected to remain strong into 2022
Tuesday, January 4, 2022
Although the Omicron variant negatively impacted global oil prices in November, crude prices finished up 2021 up by more than 50% on the year and are poised to remain strong in 2022, according to Natural Gas Intelligence.
The upward trend in prices has been encouraged by the mounting demand for travel fuels and heating oil that superseded modest increases in production.
West Texas Intermediate oil traded around $77/bbl last week, which was far higher than the $48/bbl it started out at in 2021. Additionally, Brent Crude, the international benchmark, hovered near $80/bbl, which was well above its sub $52/bbl price from the beginning of 2021.
And although both WTI and Brent prices finished November more than 15% lower, which marked the largest decline since the coronavirus was declared a pandemic in March 2020, experts expect continuously increasing demand to keep prices strong.
Learn more: Natural gas Intelligence > U.S., Global Oil Prices Poised to Extend Rebound into New Year
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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.