Natural Gas Market Indicators

April 15, 2010 by Chris McGill · 2 Comments, leave one of your own
Filed under: Natural Gas

According to the Energy Information Administration and after 37 years of reporting data, January 2010 was the all time record month for natural gas delivered to consumers in the United States. Daily delivered volumes of gas averaged 85.4 Bcf, establishing the new record.

Entering the net injection season for underground storage, natural gas supply remains strong, domestically, with hints of incremental gains in LNG imports for 2010. Even though the absolute wellhead acquisition price for natural gas remains unpredictable from day to day, the current forward view of gas prices is one of relative stability, given all of the market fundamentals that are now observable.

Visit this link to download the full Natural Gas Market Indicator. Topics covered include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Rig Counts, Pipeline Imports and Exports, and LNG Markets.

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2 Comments on Natural Gas Market Indicators

james Borchers on Wed, 21st Apr 2010 11:15 pm

I have been told that the liquids used in the extraction process of natural gas can contaminate the water supply in the area where drilling is being done. What precautions does the gas industry take to prevent this, or is it unavoidable ?

Thank you

[Reply]

Jeff Eshelman Reply:
April 22nd, 2010 at 11:07 am

To commentor James Borchers:

Every step of the process – from the initial boring of the well to its sealing after it has run dry – is conducted in accordance with state requirements. Indeed before a well is even drilled, it requires approval by state officials and a Permit-to-Drill.

Well operators not only work with state regulators, but also comply with numerous federal requirements. The Occupational Safety and Health Administration, the Environmental Response, Compensation and Liability Act and the Toxic Substances Control Act all contain record keeping and reporting rules followed by energy producers. These regulations ensure all chemicals used in the extraction process are properly handled and stored, and that workers and first responders are made aware of the substances they handle.

To prevent chemical exposure to water supplies, thick concrete casings and cement protect the well bore from allowing any seeps (think of going through a mountain tunnel, encased in thick concrete, that protects your car from the mountain collapsing).

In 2004, the EPA conducted an extensive survey of hydraulic fracturing (a practice used to produce natural gas) and its effect on drinking water. The EPA concluded that hydraulic fracturing does not create pathways for chemicals to travel between rock formations to affect the water supply. For more information, visit http://www.energyindepth.org.

Jeff Eshelman (jeff@energyindepth.org)

[Reply]

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