U.S. Natural Gas Goes Global
As much as fossil fuel alternatives are increasing, natural gas is increasing more. Gas dominates the American energy scene and will continue to grow faster than all other energy sources in the United States.
At prices less than $3/MMBtu, natural gas is undercutting nuclear and coal. Renewables can only compete with huge subsidies and state mandates. Besides, renewables need gas to load-follow them so gas loves wind and solar.
But there are fears that the industry may not be able to maintain these prices. Richard Myers sums it up like this the industry cant make a lot of money at these prices and producers wont keep this up for too long.
The United States used almost 30 trillion cubic feet of natural gas last year, but we have well over two quadrillion cubic feet of natural gas that everyone thinks is recoverable at $4/MMBtu. But costs vary wildly within the same play, sometimes by 100%. (A play is group of petroleum fields in the same region in the same geological setting)
At the same time, demand for gas will continue to increase. State legislatures love gas, the regulatory and permitting agencies love gas. Many environmentalists love gas since its easier on the environment than coal and oil and has brought down our countrys carbon emissions to a 27-year low.
Natural gas plays in the United States have over 2 quadrillion cubic feet of recoverable gas, supposedly at about $4/MBtu. But with demand accelerating, and production costs varying wildly, the industry may not be making e....