More than four billion gallons of Michigan’s groundwater could be contaminated by use in hundreds of planned fracking sites in northern Michigan, according to a new report warning of intensified fracking in Michigan. The article suggests that exports of natural gas to China may make extraction of natural gas in Michigan more profitable, prompting plans for five hundred new fracking sites by Canadian fracking corporation Encana.
Natural gas prices have plummeted since 2008, and many natural gas operations have been on a losing streak. Encana has posted losses for four straight quarters and is selling off assets. However, it and other American gas companies hope to export natural gas to China and other Asian markets, where demand for natural gas has doubled prices relative to the US. Oklahoma-based Devon Energy is currently involved in a 2.5 billion dollar deal with Chinese petrochemical giant Sinopec and has several drilling permits in northern Michigan. Read more here.