Gas-driven hydraulic fracturing and drilling cut costs, reduce environmental impact

P. KULKARNI, Editor, World Oil   Shale gas production has increased in the US to such an extent that the Henry Hub natural gas price fell as low as $1.95 per thousand cubic feet (Mcf) in April 2012. While the price rose to $4.17/Mcf by April 2013, the US Energy Information Administration's most optimistic projection suggests a ceiling of $8/Mcf, at least until December 2014.1 This price range allows natural gas to compete effectively against oil, coal and diesel as a clean, cost-effective fuel. The low price projection has encouraged several utilities to switch to gas-driven electric power generation and prompted downstream operators to launch new petrochemical projects that use natural g