Tuesday, April 17, 2012

U. S. Has a Natural Gas Problem: Too Much Of It

Morning Edition (NPR) ran a piece about a "new" problem now facing the US: too much natural gas production. One of the problems is that "during the shale gas explosion of the past few years, production companies spent big bucks leasing mineral rights in vast shale gas areas from PA to TX." Drilling continues in some shale areas because many of the 3-year leases will expire soon if the producers don't drill. Drillers drill just to hold the lease. This means the glut is exacerbated. Another reason that production continues: About one third of natural gas wells bring up natural gas liquids that could be propane or butane which are valuable.
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