Fracking Leads to Natural Gas Price Drops

Fracking technology led to a gas boom--now there's so much gas available, that prices have dropped along with demand.

"Michael Kehs, vice president of Chesapeake Energy, one of the biggest shale gas producers, says 'the boom has only occurred over the last few years, and the market at first wasn't sure that it was real.' But now, he says, 'it is so real that's it's actually depressing prices, and the view is that the price will remain low for a number of years going forward.'"

Companies are storing gas and have nearly reached storage capacity, according to Christopher Joyce of NPR. In spite of the drop in demand drilling and fracking are likely here to stay as companies wait for electric utilities and factories to switch to natural gas power, according to Joyce.

Thanks to Cathie Pagano

Full Story: Is The Booming Natural Gas Industry Overproducing?

Comments

Prepare for the AICP Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $199
Planetizen Courses image ad

Planetizen Courses

Advance your career with subscription-based online courses tailored to the urban planning professional.
Starting at $14.95 a month
Women's t-shirt with map of Los Angeles

City T-Shirts for the ladies!

Women's Supersoft CityFabric© Fashion Fit Tees. Now available in six different cities.
$24.00

Wear your city with style!

100% silk scarves feature detailed city maps. Choose from six cities with red or blue trim.
$55.00