For natural gas to be the fuel of the future, environmental concerns must be addressed. Fracking, the process used to extract natural gas, involves injecting chemicals into the ground in order to fracture the rock that contains the gas.
Some claim fracking contaminates water wells. A recent study from the U.K. finds these claims to be false.
However, perception is reality. And to this point, natural gas advocates are losing the PR battle despite efforts from energy giants like ExxonMobil
New York issued a fracking moratorium while France is considering banning the drilling practice outright.
But many companies are working on addressing these environmental concerns by cleaning up the much-maligned drilling process.
Through its Green Frac program, the company has eliminated 25% of the chemicals previously used in the fracking process. In addition, Chesapeake is actively searching for safer alternatives for the remaining chemicals.
GasFrac (OTC BB: GSFVF.PK) is a company dedicated to efficient and environmentally friendly fracking. The company uses propane, as opposed to water, to extract natural gas. GasFrac claims the proprietary technology enhances well productivity as well as eliminates any possible reservoir contamination.
Revenue has increased sharply from roughly $30 million in 2009 to $97 million in 2010 as GasFrac continues to develop an impressive list of clients including Apache and Devon Energy.
The bottom line
Recent developments are easing concerns over the natural gas extraction process. As these concerns are addressed begin to look for ways to invest in the golden age of natural gas.