The Marcellus gas land men who knocked on doors back in 2007 made a patriotic argument, as well as promising riches to potential lesees — the more fossil fuel we could produce in this country, the less we would have to rely on unstable sources from overseas.
Fast forward eight years, and there is glut of natural gas in America, largely due to high-volume hydrofracking. Prices have gone way down, so that many landowners who leased in Pennsylvania are getting much less than they expected. According to a report by Fitz Rating service, it currently costs 25 percent more than the selling price to produce a unit of fracked gas.
The result of this imbalance is that the gas companies are slowing down drilling and even shutting down some wells. Storage facilities are full, while the gas companies wait for a price rise to sell or look for new markets outside the United States. Some say that the original goal for the drill companies actually was to sell the Marcellus gas abroad, where the price is much higher than in the U.S.Click here to continue reading this opinion piece.
Connect with us on Facebook and Twitter!