Oil and gas drillers finally see relief from rising costs
Thursday, April 13, 2023
U.S. oil and gas drillers are finally seeing some relief from the rising costs that have held back profits and production in recent years, according to MRT.
North American oil and gas producers have prioritized shareholder returns over output growth in recent years due to the increased costs and fracking equipment shortages. However, the turnaround for costs could allow drillers to consider output increases when other suppliers around the world are holding back.
Industry experts also expect a relatively stable year with flat to slightly inclined prices.
Learn more: MRT > Oil drillers see costs peaking in fields
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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.