The December gas futures contract is currently trading at $3.40, $0.05 higher than it settled yesterday. The 12 month strip is trading at $3.63/MMBtu and this year's winter strip (Dec 11 - Mar 12) is trading at $3.50/MMBtu.

Still no Evidence Linking Fracking to Water Contamination

Numerous studies have been going on for months (some for years) by many governmental agencies and countless Universities across the country to determine if there is a connection between the process of Hydraulic Fracturing and ground water contamination.

The conclusion is the same as it has been for the last 60 years: there is still no evidence that can directly link the process to water contamination.

 The EPA's study has found contaminants in ground water near natural gas wells, but they have not drawn any conclusions from these findings. 

According to Encana spokesperson Doug Hock, the EPA's study is being performed in a region that has historically had poor water quality and the EPA's monitoring wells were drilled into a known gas producing formation.

"The science remains inconclusive," explains Hock, "It's not surprising that they found elevated levels of BTEX and methane... No oil and gas contaminants were found to exceed standards in private water wells"

Other Studies:

Last Wednesday, the University of Houston released the preliminary results of a study suggesting absolutely no link between Fracking and ground water contamination.

Also last week, the University of Texas Energy Institute released a report summarized by the university geology professor and Energy Institute associate director Charles Goat:

"From what we've seen so far, many of the problems appear to be related to other aspects of drilling operations, such as poor casing or cement jobs, rather than hydraulic fracturing per se."

This study, along with all others being performed, continues to support the notion that when done responsibly, the process of hydraulic fracturing is absolutely safe for the environment.