Oil prices hit 7-year high, over $80 a barrel
Friday, October 15, 2021
Oil prices have increased 120% from a year ago and hit a 7-year high on Monday, according to The Hill.
American crude prices hit $81.50 a barrel Monday morning, dropped slightly to $81.15 midday and closed at $80.49. It’s the first time crude prices closed at more than $80 a barrel since October 2014.
According to The Wall Street Journal, an international natural gas shortage could soon extend into the oil market as some power plants may rely on oil to make up for the shortfall amid increased demands during the colder months.
American natural gas futures reached $6.31 per million British thermal units last Tuesday, the highest in nearly 13 years.
Learn more: The Hill > Oil trades above $80 a barrel, hitting a 7-year high
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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.