2012-04-12. Fuel to Burn: Now What?

posted Apr 11, 2012, 9:41 AM by Alan D. GOULD
| by Jad Mouawad, The New York Times. An article relevant to GSS Energy Use chapter 3. Excerpt: The reversal of fortune in America’s energy supplies in recent years holds the promise of abundant and cheaper fuel, and it could have profound effects on what people drive, domestic manufacturing and America’s foreign policy.  …High energy prices led to a wave of successful oil and gas exploration in North America, including in fields that were deemed uneconomical only a few years ago. Using techniques like horizontal drilling and hydraulic fracturing, oil companies are tapping into deeply buried reserves in shale rocks and in the ocean’s depths. …Ed Morse, head of global commodity research at Citigroup and a longtime energy analyst, says North America has the potential to become a "new Middle East." "The reduced vulnerability of North America — and the world market — to oil price spikes also has deep consequences geopolitically, including the reduced strategic importance to the U.S. of changes in oil- and natural gas-producing countries worldwide," Mr. Morse said in a recent 92-page report called Energy 2020.  …The glut of natural gas supplies ... has effectively put an end in the United States to any new investment in coal plants, which produce much more emissions. But it also makes the economics of alternative, noncarbon energy sources like wind power or solar power difficult to justify without public support and subsidies.  …Natural gas prices have fluctuated wildly in recent years, rising to $14 for a thousand cubic feet from $2 within a few years. The current glut, however, has driven prices back down again, to near $2 for a thousand cubic feet. …Shipping costs may be lower, particularly if transportation companies shift their fleets to natural gas-powered or electric vehicles. …. Read the full article: http://www.nytimes.com/2012/04/11/business/energy-environment/energy-boom-in-us-upends-expectations.html?_r=1&ref=businessspecial2&nl=todaysheadlines&emc=edit_th_20120411
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