“A transition has begun from coal to natural gas as America’s most important source of electric power. Natural gas emits about half as much carbon dioxide per unit of energy as coal. That’s not as clean as solar or wind, but those technologies cannot (yet) compete on price.
Fracking offers hope that natural gas will soon cost least of all. If that hope comes true, the transition from coal to gas will generate a huge burst of economic activity and accelerate the transition to a more sustainable future for humanity.”
Since 1947, hydraulic fracturing has been used to extract more than 7 billion barrels of oil and 600 trillion feet of natural gas from deep underground shale formations.
In 2008, after the innovation gave way to a surge in resources, the wellhead price of natural gas plummeted from nearly $8 per thousand cubic feet to $3.67 per thousand cubic feet. This increase in domestic production has kept prices low for American consumers—who get 24 percent of their electricity from natural gas—when not too long ago it was considered by some a foregone conclusion that the United States was running out of gas supplies.
Despite the fact that hydraulic fracturing has been employed for half a century at comparable depths of thousands of feet, opponents of natural gas insist that groundwater is now being contaminated. This claim lacks substantive data to support its conclusions as both the national association of state groundwater agencies and the multistate governmental agency representing states’ oil and gas interests have found no evidence of groundwater contamination from hydraulic fracturing fluids.
Natural gas can be produced on demand and natural gas power plants can be spooled up and down on demand as well. Both wind and solar are intermittent and thus still require the construction of coal or natural gas backup for base load and peak power capacity.
According to the EPA, natural gas electricity generation produces half the carbon dioxide of coal, less than a third of the nitrogen oxides and 1 percent of the sulfur oxides.
Strict compliance to current regulations is sufficient to protect the aquifer while allowing American companies to tap into rich U.S. reserves and free the nation from its dependence on foreign sources of energy. Simply put, without deep horizontal drilling combined with multi-stage hydraulic fracking, the U.S. oil and gas industry cannot survive.
American manufacturers are enjoying cheaper energy. Thanks to shale gas, natural-gas prices in America are as low as they have been this decade. Fracking has also decreased our reliance on foriegn fuel.
Oil companies began exploring Southern Kansas over a year ago, seeing enormous potential in the area now that new technologies like horizontal drilling and fracking have made it possible to tap into the oil-rich Mississippian Limestone formation. Thousands of jobs are coming to the area too.
India has a global monopoly, meeting 80% of world demand even with harvests that have never exceeded 1.5 million tonnes. Currently, production is down 20% while demand from oil industry is up 84%. This imbalance has triggered unusual greed and panic.
“The economy accelerated despite the slowdown in the U.S. and China, indicating domestic demand likely accounted for a large share of the expansion,” wrote Marc Chandler, market strategist for Brown Brothers Harriman.
At least a dozen new oil pipeline projects are slated to move forward in the United States over the next few years.
All told, the new projects will have the capacity to bring at least an extra 2 million barrels a day of oil to the U.S. Gulf Coast by 2015.
The industry and most oil analysts think the additional oil will be used by U.S. refineries, offsetting the need of some oil imports and potentially lowering gasoline prices.
American manufacturers are focused on investment, expansion and job creation. One important way to do this is by expanding their customer base. And, with 95 percent percent of the world’s population outside the United States, it is not surprising that American companies are looking at markets outside the United States. More business translates into more jobs and stronger companies.
With prices for natural gas so low, and prices for oil-based fuels so high, the idea of building plants to convert natural gas directly into liquid diesel and jet fuel is something more companies are looking into.
“Group’s main task is to keep the various federal entities all on the same page when it comes to developing new policies and regulations surrounding shale gas.
Part of their focus will also be on hydraulic fracturing, or fracking for short — a controversial technique that uses vast amounts of chemically-laced water, sand and pressure to crack shale rock and release the gas.”
U.S. manufacturers, frustrated by a shortage of skilled American factory workers, are going abroad to find them.
If you own a small business, or are in a position of influence in one, that means looking to export to, or expand into, emerging markets.
“The consumers are overseas; people need to wake up,” says Sandra Westlund-Deenihan, president and design engineer at Quality Float Works.
“An Iranian disruption of oil supplies could send oil prices to $200 a barrel,” said Lynn Reaser, chief economist at the Fermanian Business & Economic Institute.
“The best way to alleviate the problem of natural gas oversupply in North America is to increase its export. The most economical way to export natural gas is to liquefy it (LNG)”
“It would be enormously profitable for North American E&P companies since gas trades in the US at $2.50 per million BTUs, in Europe at $9, and in some places within Asia at up to $16.”