Earthquakes Closer to Home Could Impact Natural Gas Market

Over the past year there have been approximately 700 smaller earthquakes in northern Arkansas and the most recent 4.7 magnitude earthquake has geologists working hard to explain how they are happening and if the heartland of the United States can expect anything as devastating as Japan's magnitude 9.0 earthquake.

Meanwhile, however, Arkansas state officials have issued orders to two natural gas drilling companies to cease all drilling injections associated with hydraulic fracturing in two regions. 

Energy Solutions, Inc. President, Valerie Wood, reiterated the sentiment of those conducting the research, stating, “While the cause isn’t yet known, some believe the earthquakes are the result of the chemicals used in the hydraulic fracturing process.”  Wood went on to explain, “Others believe, however, it is the New Madrid Fault Zone region becoming active again.”

The New Madrid Fault Zone, also known as the Reelfoot Rift, is located 25 miles under the ground.  It is famously known for the earthquakes of 1811 and 1812, two years that registered four of the strongest earthquakes ever recorded in North America.  One of these earthquakes, which occurred on February 7, 1812, reached a magnitude of 8.6, destroyed New Madrid, Missouri, and rang church bells in Boston and New York City, one thousand miles away.

While the cessation of hydraulic fracturing in Arkansas has yet to show its impact upon the natural gas marketplace as a whole, Energy Solutions, Inc. believes this is something to watch very carefully in the short term.

More details will surely follow in future issues of The Advisor.

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About Energy Solutions, Inc. 

Formed in 1996, Energy Solutions, Inc. is independently owned. With more than 50 years of experience in the natural gas industry, our team focuses on natural gas prices and in helping businesses improve their internal processes for the purchase of natural gas.