U.S. Shale Gas and Oil Already Lowering Global Prices
Wednesday, May 22, 2013
Recent growth in U.S. energy production has helped reduce the price of Brent crude, a major benchmark commodity, by $25 a barrel, according to Energy Tomorrow. It’s big news because the price of crude is the single largest factor in the price of gasoline.
Energy Tomorrow is a blog produced by the American Petroleum Institute, a national trade association representing all aspects of America’s oil and gas industry.
What is the cause of such an increase in domestic energy production? Hydraulic fracturing and horizontal drilling, according to the blog.
» Via: Energy Tomorrow › Rising U.S. Oil Supply and the Impact on Global Markets
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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.