Now that the weather might be warming up in Michigan we don’t really think about the awfully high gas prices we paid for winter heating. But I caught a quick little announcement on WXYZ news that we will see higher heating bills this coming winter. HIGHER?!?!?!?! The price of natural gas is down, but DTE will be charging more for delivery costs.
At the same time congress is conducting hearings on the pros and cons of fracturing for natural gas. Fracturing is a quick method of forcing water, sand, and other liquids (chemicals) into the ground under high pressure. Not a good practice at all. We really need to get moving on alternative sources for our energy needs because we’re really lousing up the earth with the way we do things. I’ve read about streams poisoned from the benzene leaking out of the ground with the fracturing process, and the humungous waste of water especially when hitting underground springs. I recently wrote about natural gas drilling again.http://www.blogsmonroe.com/world/2009/05/natural-gasmethane-found-in-more-and-more-drinking-water-across-the-country/.
According to ProPublica, “the fracturing process was exempted from federal environmental oversight in 2005 and now, amid emerging evidence that it is damaging water resources [4] across the country, Congress is preparing legislation that would reverse [1] the exemptions and require the industry to identify the toxic chemicals it pumps underground.” The American Petroleum Institute and its deep pockets is preparing to fight stating that individual state regulations are enough. Remember, I wrote a blog about our state cutting back so badly in its regulatory departments especially relative to groundwater issues that no one is minding the fort. So the API is grossly incorrect already in its assumptions about states being able to monitor fracturing processes.
Whatever happens, you know it will affect our wallet one way or another. It’s curious though just reading through feature articles on Oxford-Princeton Industry Briefs website says a lot. Starting on May 15th with “Natural gas stocks rose in U.S.,” the headlines follow: “Natural gas supplies rose last week, Natural gas rig count reaches 6 year low, Arctic thought to contain massive oil and gas supplies, Congressional plan could raise energy royalties, Natural gas customers enjoying low rates, Natural gas stockpiles rose last week, Natural gas, oil prices see as trending upward, and Senate committee backs more drilling in the Gulf.” If you click on Senate committee… the related headlines say, “Oil prices boosted by higher supplies, Debate over congressional proposal taking shape, and OPEC production headed back up.”
None of it makes sense. How are natural gas supplies rising if gas rig counts are down, less rigs should equal less natural gas? And now that Congress might raise energy royalties the push is on to drill more in the Gulf. Oh and suddenly the Arctic is THOUGHT to have massive oil and gas supplies so if the gulf doesn’t produce… And as customers enjoy lower rates, natural gas and oil supplies are trending upward, that’s curious. Finally, why are oil prices boosted by higher supply, and not higher demand? I thought we are using less oil? OPEC’s production is headed back up. When supplies are high, aren’t prices supposed to drop?
http://www.propublica.org/article/natural-gas-drilling-debate-heats-up-603