Industrial demand, Europe’s energy crisis to increase natural gas prices this summer
Tuesday, May 17, 2022
Demand from the industrial sector and residual effects from Europe’s energy crisis will push natural gas prices higher this summer, according to Natural Gas Supply Association projections.
The trade groups released its 2022 Summer Outlook last week, predicting downward pressure from weather and increased production compared to last summer and upward pressure from low storage inventories and overall demand increases.
Natural Gas Supply Association expects the market to “remain in a tight balance this summer, resulting in upward pressure on natural gas prices compared to last summer’s average of $3.85/MMBtu” for Henry Hub, according to Natural Gas Intelligence.
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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.