GAS DRILLING BOOM MUST COME!
Natural gas prices must rise and drilling boom must follow or we will run out of natural gas and face a serious disaster!
New oil discoveries have fallen to a six-decade low as explorers cut billions of dollars of capex spending to ride out the biggest market slump in a generation. Why is the market not worried about a shortage? Because the necessity to cut CO2 to stop global warming and filthy air in cities will curb oil consumption. Vehicles of all sorts will be forced to convert to natgas, including trucks, trains, planes, and ships. The new natgas-fired turbines are ready to go. They will be cheaper to operate on natgas than on oil. Conversions will save shippers lots of money.
Coal is dead! Crude is slowly dying!
The primary fuel for the next 20 years has to be clean burning natgas because it cuts CO2 by 50% and there is no other replacement.
Natural gas, the cleanest fossil fuel, is a highly efficient form of energy. It is composed chiefly of methane; the simple chemical composition of natural gas is a molecule of one carbon atom and four hydrogen atoms (CH4). When methane is burned completely, the principal products of combustion are carbon dioxide and water vapor.
Natural gas's advantages over other fuels include the following: it has fewer impurities, it is less chemically complex, and its combustion generally results in less pollution. In most applications, using natural gas produces less of the following substances than oil or coal: carbon dioxide (CO2), which is the primary greenhouse gas; sulfur dioxide, which is the primary precursor of acid rain; nitrogen oxides, which is the primary precursor of smog; and particulate matter, which can affect health and visibility; than oil or coal. Technological progress allows cleaner energy production than ever for all fuels, although the inherent cleanliness of gas means that environmental controls on gas equipment, if required, tend to be far less expensive than those for other fuels.
Natural gas also is helping America develop clean alternative energy sources in various ways, such as the following:
Natural gas is used to make fertilizer for ethanol.
Natural gas is used to make methane for hydrogen.
Hydrogen is used to eliminate soot for cleaner diesel fuel.
Electric utilities use natural gas to generate clean power.
Natural gas is a raw material that goes into lightweight cars, wind power blades, solar panels and energy-efficient materials.
Using natural gas to replace less environmentally benign fuels can help address simultaneously a number of environmental concerns, such as smog, acid rain and greenhouse gas emissions.
Natural gas is highly efficient. About 90 percent of the natural gas produced is delivered to customers as useful energy. In contrast, only about 30 percent of the energy converted to electricity in conventional generating facilities reaches consumers.
In order to pursue alternative energies, the United States must safely access America's natural gas supplies to bridge the cap until solar and wind can take over. It can't happen without natural gas.
We must switch to natural gas or we all die of heatstroke from Global Warming!
This is why the majors cut the capex in oil exploration. They are also walking away from offshore drilling and getting very serious about onshore fracking for natural gas.
The majors and the deep pockets are smart enough to know that crude oil is on the way out and natural gas is on the way in. If they want to survive, they have to start fracking for gas and they will have to act within the next 6 months.
By 2035, natural gas turbines will be the largest source of electrical power in the U.S., jumping from 21 percent today to more than 40 percent. Coal will dip below 20 percent, while nuclear will stay flat at around 21 percent.
We are looking at a world over time that is switching to natural gas. It is the fuel of the future!
Although natural gas is the big winner, new renewables like solar, wind and geothermal will see a jump as well, rising from four percent of the mix today to 11 percent by 2035.
The outlook is the result of a variety of factors. Technology allowing fossil fuel companies to access shale gas deposits, combined with a proposed pipeline in Alaska that should kick into gear in the next decade, could keep the price of gas under the $8 per million BTU level through 2030.
Precision Drilling will soar during this period!