Posted on 05/30/2012 3:26:31 PM PDT by Libloather
Analysis: Shale energy boom dangles prospect of leap in economic growth
By Jason Lange | Reuters – Thu, May 24, 2012
WASHINGTON (Reuters) - America's reliance on fuel imports has sucked vigor from its economy for decades. Now an oil and natural gas boom holds out the prospect for a new era of stronger U.S. economic growth.
Vast reserves of natural gas and oil unlocked from underground shale deposits have slashed the price of U.S. natural gas to a fraction of costs in Europe and Asia, making it some of the cheapest energy in the world.
That is cutting production costs at U.S. factories, making 'Made in America' a more attractive option and driving investment in everything from foundries to chemical plants.
The shale energy revolution could also turn the United States into a net exporter of many fuels in little more than a decade, transforming energy from the economy's Achilles' heel to a source of strength.
(Excerpt) Read more at news.yahoo.com ...
You just know T. Boone Pickens is in the background somewhere trying to put the kabosh to this sine it competes with his natural gas enterprise.
Why is natural gas price so low?
I pay level-billing for my gas, and my gas company basically had to drop my level-billing amount by 50% because I overpaid so much this winter.
Not that I’m a T. Boone fan, but we are getting as much natural gas from fracing as we are getting oil. The Marcellus Shale is perhaps the biggest natural gas play in history.
“Why is natural gas price so low?”
A combination of the weak economy, increased production due to new drilling technolgy, and a mild winter has driven supplies to record highs.
http://ir.eia.doe.gov/ngs/ngs.html
MORE!
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I want more of this and more of everything else. Lets start building thorium power in every state and pipelines and wells so much you won’t be able to see the ground.
“That is cutting production costs at U.S. factories, making ‘Made in America’ a more attractive option and driving investment in everything from foundries to chemical plants.”
This certainly helps and I don’t mean to downplay how great it is that American innovation could make us once again energy self-sufficient. However, it will take more than just cheap energy to revitalize our industrial base. We need to cut the government regulation, reduce taxation, curb the parasitic trial lawyers, enact “right to work” legislation in more states, and get a motivated skilled work force.
The energy boom is a start, but it’s not the be-all end-all.
Natural resource development and extraction has always been a wealth multiplier.
Logging the northern White Pines built Chicago, St. Louis and a dozen other cities in the 19th century.
Mining gold, silver, copper and iron fueled the industrial revolution.
The impact of using our knowledge to extract the various oil, natural gas and coal resources is limited only by our imagination.
The seditious rat party and the eco-fascists must be eliminated by whatever means necessary so we can realize our potential.
Israel is developing the Tamar and Leviathon gas fields in the Mediteranian Sea without interference from the government or the goosestepping eco-fascists. We need to do the same.
The first order of business is to throw Buckwheat out of our Whitehouse.
His natural gas enterprise depends on this technology. He wants it expanded, not stopped.
Although the lower consumption during a milder winter helped, the biggest change we have seen is in Natural Gas Production.
Natural Gas Delivered to Consumers in the U.S.
http://www.eia.gov/dnav/ng/hist/n3060us2m.htm
U.S. Dry Natural Gas Production
http://www.eia.gov/dnav/ng/hist/n9070us2m.htm
The winter peak demand as down 5.6% from the previous year, but the production rate is up 13.5% in one year alone.
The US have limited means to export NG. The amounts available to the consumer is huge thus the low prices for business and consumers. This will give us an advantage but the NG companies want facilities, pipelines and ports to export the NG at the world market rate. If world demand is added the price of NG will go up for everyone. NG companies are not interested in US strategic advantage all they want is more higher profits. Fed gov wants exports and higher prices because it gives them more tax revenues. IMHO the NG companies should first meet US needs to keep prices low so we can take on the world, then any excesses of NG be sold overseas prices. Either the US learns to coordinate its resources or it can approach it in a chaotic and uncoordinated way.
NG gets nearly the price of liquid fuels on the world market (Asia) and that pushes down the price of the liquids we import. Uncoordinated but effective enough.
While I sympathize with your nationalistic sentiments you need to consider carefully how much government control it would take to implement such a plan.
The term fascism comes readily to mind.
the technology is quickly being exported overseas. other countries have huge reserves too—including china. within a couple years other big players are going to see their domestic production of natural gas skyrocket.
natural gas supply for sometime will outstrip demand. this is only the beginning of a 20-30 year production boom. There are literally four or five and other huge natural gas fields and a dozen smaller ones in the USA that have not made the headlines. all of them have oil in them too.
Some aspects of modern society has facism (state coordinating with corporations). Defense programs come into mind. We do not have China build our carriers, stealth fighters, etc, etc though it would be much cheaper and Defense contractors would make a bundle. If you see NG as a commodity, yes gov should get out of the way of private industry. On the other hand if you consider NG a critical strategic material, then it should be treated like an item in Defense. If we want to create jobs in all sectors, very cheap energy plays a key role to counter our high labor costs. Want to reduce size of gov, reduce the political demand for gov programs by creating environment where private jobs can be kept in US and not shipped overseas.
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