The November gas futures contract is currently trading at $3.65, $0.03 higher than it settled yesterday. The 12 month strip is trading at $4.09/MMBtu and next year's winter strip (Nov 11 - Mar 12) is trading at $3.98/MMBtu.

Federal Government may not be well Equipped to Regulate Fracking

As the debate continues about the use of Hydraulic Fracturing and the effects it may or may not have on drinking water and the environment, it's becoming clear that the process may be headed for more regulation than expected.

The process is already regulated on a Federal level by the EPA, who despite releasing a report in 2004 claiming the process poses no "discernable risk to fresh water aquifers," still wants control over the process.

The White House itself is now stepping into the discussion with a new advisory panel to the Department of Energy to analyze the process and make recommendations. Members of congress are also lobbying to put the process of Fracking under federal oversight under the Clean Water Act. Even the Bureau of Land Management wants to regulate the process on Federal lands.

These are just the regulations on the Federal Level, and each state will have to deal with additional regulations on the state level from similar organizations.

Even with a 60-year track record with not a single case of water contamination as a direct result of Hydraulic Fracturing, many Governmental agencies are still attempting to gain control over the process, and they are the only thing standing in the way of letting to process take off, grow even more rapidly, expand our economy, and create jobs.

Shale makes the US Competitive, and not just with Natural Gas

All of the natural gas the US has discovered right underneath our feet has increased supply and therefore allowed the prices to fall, and reduce our dependency on foreign energy.

Drilling for Natural gas has also provided significant cost advantages for North American commodity chemical producers. Access to lower cost natural gas liquid feedstocks has increased these companies competitiveness for vital products such as ethylene, polyethylene and other derivative products.

Foreign competitors that still use crude-oil based feedstocks such as naptha and vacuum gas oil are at a large disadvantage to companies utilizing NGL feedstocks instead.