Chinese scientists have discovered that carbon dioxide is more efficient to use in fracking than water.
Fracking is the controversial process in which water or other fluids are injected into underground rocks at high pressure to release oil and natural gas deposits.
U.S. environmentalists have denounced the process because of the huge amounts of water needed, the contamination of underground water supplies, and small earthquakes it triggers.
In a new report in the journal Joule, scientists from the Chinese Academy of Sciences and China University of Petroleum discovered that using CO2 instead of water resulted in as much as 20 times more oil.
“These real-world results revealed that as compared to water fracturing, CO2 fracturing is an important and greener alternative,” especially in arid areas where the water has to be trucked in, the report says.
Carbon dioxide is the main greenhouse gas blamed for global warming.
The scientists say the CO2 used in fracking would stay underground and not be released into the atmosphere.
The massive inventory of natural gas that has been a result of fracking technology over the past two decades is truly making its mark on the global economy. Not only is it being used to supply homes with heat, it is being used as a replacement for coal in many locations across the globe. The end of coal is clearly upon us for the most part, largely due to the availability of natural gas reserves that have grown significantly over the the past 20 years. Natural gas inventories are also being converted to liquid as well at pace never seen before in history, and it is clearly positioned to be the prime resource for both heat and electricity supplies within the west if not across most of the industrialized world. This is indeed a positive sign for the future for those wanting to invest in an obvious pro-growth product, as there appears to be no way to go but up with the increased pace of both natural gas and LNG usage. The question now is, what does the future hold for prices?
Current Price Range
High inventories typically mean lower prices for all products as a basic economic rule. This is the current status for natural gas. However, new inventories also translate into more types of usage in higher quantities, which means demand will assuredly increase in the very near future. And demand is what ultimately controls prices of any product with to respect to what the market will bring. This is currently the status for natural gas prices, andEdmonton power providers understand this position, as they are developing plans for consumers with locked-in price guarantees for multiple years when customers enter into the pricing agreement. This guarantees they will have the clients on their input cash flow roster as current and ongoing customers for a set period of time.
Future Increase Potential
Of course, the real question everyone will have centers on upcoming prices going forward as demand increases. This may not be so dependent on inventories, as estimates show there is a massive amount of potential natural gas reserves in many locations in countries like Canada. The United States is in a similar position, as energy companies throughout the western hemisphere are assessing the possibilities for natural gas extraction and conversion into usable energy products. Very similar to oil production, natural gas demand may grow at a faster pace than the inventories. This will definitely result in prices being increased depending on the location, demand, and availability of natural gas deposits.
World Bank Predictions
Global players like the World Bank have also weighed in on the uptick in natural gas usage and the pricing index. The 2016 prognosis was exactly what we have seen in the past three years, and they stated even then that the current trend will continue into 2025. The World Bank is now saying the incline will continue to increase generally in line with what energy providers across the globe are anticipating, including demand in Europe as well as the west until 2030 at least with the current market balance. This will no doubt result in steadily increasing prices that should not be too drastic barring some sort of upset in supply and demand.
Also Read- Long-Lasting Structural Changes can Improve Growth Potential of Indian Economy The overall outcome of what is apparent in the current market trend is for natural gas to become even more positive for consumers as well as investors in the near future. All customers are looking for stable and reasonable prices, and those who can invest are always looking for a sound investment in a necessary product with little market volatility exposure. While prices will clearly increase slowly over time, natural gas still poses for positive results in the near future for everyone.