2. Due to the record levels of natural gas production and the unseasonably warm weather this winter, prices keep falling. The price for U.S. natural gas futures contracts dropped to a ten-year low of $2.47 per million BTUs in trading on the NYMEX yesterday, see chart below.
1. Domestic production of natural gas set another new all-time record high during the month of October at 2.48 trillion cubic feet of gross withdrawals (see chart below, data here).
3. The shale gas revolution that has produced record-setting levels of domestic production has been made possible by advanced drilling technology known as “fracking,” which has unlocked vast supplies of gas from deep shale formations around the country. As effective and successful as fracking has been for unlocking deep shale gas and tight oil, it might soon get even better with new technologies that are under development and being called “super-fracking.” According to a Bloomberg article, “Industry scientists are studying ways to create longer, deeper cracks in the earth to release more oil and natural gas.” If “super-fracking” becomes a reality, it might be the case that the “shale revolution” is just getting started.