Natural Gas futures rise as EIA data show storage shortfall
Friday, June 10, 2022
The Energy Information Administration reported a smaller-than-anticipated injection into natural gas storage inventories for the week ending June 3 and futures prices rebounded, according to Natural Gas Intelligence.
The EIA recorded 97 Bcf injected into natural gas storage and futures prices recovered slightly after a dip. The July Nymex gas futures contract was trading over 50.0 cents lower day-over-day at $8.186/MMBtu ahead of the report. Then, the price jumped back up to $8.263. and sat at $8.506 — only 19.3 cents off of Wednesday’s close.
Analysts said there was a risk to the high side in the latest storage data and that’s likely why prices bounced back after the data was published.
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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.