U.S. natural gas storage reaches record high
Tuesday, November 22, 2016
The volume of U.S. natural gas in storage hit a record high on Nov. 4, as production declined for the first time in over a decade, according to Oil and Gas Investor.
Stockpiles reached a gaudy 4.017 trillion cubic feet, topping the previous mark of 4.009 Tcf from Nov. 20, 2015, according to the U.S. Energy Information Administration. The increase occurred despite utilities pumping 1.549 Tcf into storage — the lowest amount of gas added over an in section season dating back to 1994.
What this means for the struggling market is that supply still heavily outweighs demand and price increases aren’t likely under the current conditions.
Learn more: Oil and Gas Investor > US Natural Gas Storage Hits All-Time 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.