Natural gas futures fall as EIA storage report exceeds estimates
Friday, June 3, 2022
Natural gas features fell Thursday after the latest Energy Information Administration data revealed looser storage balances, according to Natural Gas Intelligence.
July Nymex gas futures finished 21.1 cents lower at $8.485/MMBtu and August futures dropped 21.2 cents to $8.474/MMBtu. However, spot prices continued to climb as Natural Gas Intelligence’s Spot Gas National Average showed a 17.5-cent increase to $8.375/MMBtu.
Simultaneously, the latest storage figures showed supplies are starting to loosen. The EIA reported a larger build than expected earlier in the week with a 90 Bcf injection into natural gas storage for the week ending May 27.
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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.