of oil production. North American natural gas competes with alternative uses such as gas for heating or for power generation. Natural gas storage levels have a significant impact on the commodity’s price. When the storage levels are low, a signal is being sent to the market indicating that there is a smaller supply cushion and prices will be rising. On the other hand, when storage levels are high, this sends a signal to the market that there is greater supply flexibility and prices will tend to drop.
What's funny to me, is that fracking is not necessary to produce natural gas. The steady flame of burning natural gas is a familiar sight at oil wells. Methane gas is actually a by-product that is burned off as a waste product.
"I'm as mad as hell, and I'm not going to take this any more!"
- Howard Beale
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