Oil prices reach $50 per barrel for first time in seven months
Friday, May 27, 2016
Brent crude and U.S. West Texas Intermediate (WTI) hit the $50 per barrel mark May 26. Prices haven’t been this high for seven months.
CNBC reports that at intraday trading, Brent crude oil sat at $50.51 before falling to $49.70 at 12:44 p.m. U.S. crude futures were at $50.51 before falling slightly to $49.48.
Several factors, including wildfires in Canada, Venezuela’s economic situation and unrest in Nigeria, have resulted in a loss of 4 million barrels per day of oil on the market.
Read more: CNBC > Oil prices test $50 a barrel as supply concerns resurface
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Marcellus & Utica Shale Well Map
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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.