“It’s cleaner than coal, cheaper than oil and a 90-year supply is under our feet.” That’s how Associated Press writer Mark Williams describes America’s natural gas reserves in a telling article that follows right on the heels of last week’s climate conference in Copenhagen.
Williams points out that only a few years ago, natural gas was thought to be in short supply. Wild price swings were not uncommon. Thanks to new technology, however,
“It’s now being uncovered at such a rapid pace that its price is near a seven-year low. Long used to heat half the nation’s homes, it’s becoming the fuel of choice when building new power plants. Someday, it may win wider acceptance as a replacement for gasoline in our cars and trucks.”
More recently …
Oil and gas prices trends have since diverged, due to the recession and the growing realization of just how much gas has been discovered in the last three years. That’s thanks to the introduction of horizontal drilling technology that has unlocked stunning amounts of gas in what were before off-limits shale formations. Estimates of total gas reserves have jumped 58 percent from 2004 to 2008, giving the U.S. a 90-year supply at the current usage rate of about 23 trillion cubic feet of year.
The writer points out that the world’s largest energy company, Exxon Mobil, has taken note. It will be paying more than $30 billion to acquire XTO Energy. The acquisition will make Exxon Mobil the largest natural gas producer in the U.S.
He also singles out utility companies such as Progress Energy and NV Energy that have opted to fund power plants fueled by cleaner natural gas over coal. Who hasn’t gotten the message? That’s right: the politicians!
Natural gas’ abundance and low price come as governments around the world debate how to curtail carbon dioxide and other pollution that contribute to global warming. The likely outcome is a tax on companies that spew excessive greenhouse gases. Utilities and other companies see natural gas as a way to lower emissions — and their costs. Yet politicians aren’t stumping for it.
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