Saturday, June 2, 2012

American Natural Gas Changing The World?

In a sense, natural gas, being mainly methane (CH4) is a "renewable" resource.  Consider how it is produced in and from land fills, piles of manure, and so called "swamp gas".  Since this gas is so clean burning, (we use it in our homes every day) it is no wonder it is becoming so popular and useful all around the world.  The big question is, how much of it is there?

With the horizontal drilling and fracking taking place in shales, the future supply seems tremendous.  My question is it constantly being generated from the organic material in all these abundant shales around the world?  That would almost make it "renewable", would it not?  Any thoughts on this concept?

Why American Natural Gas Will Change The World

LNG Carrier Galea - IMO: 9236614 - Singapore, ...
LNG Carrier Galea - IMO: 9236614 - Singapore


‘It was the best of times; it was the worst of times’ – never a truer word spoken for the gas industry. Whilst Chesapeake is fighting for its life in the US, spot gas prices are reaching all-time highs in Asia. In this ‘Tale of Two Cities’ you’ll get $2/MMBtu in New York (Henry Hub) and around $20/MMBtu in Singapore (Asian spot). The divorce between the Atlantic Basin and Pacific Basin couldn’t be any starker – the question is whether these spreads will incrementally narrow under inexorable laws of economics, or whether politics will throw a spanner in the works. Depending on how you answer this ‘convergence question’ will have dramatic implications for hydrocarbon asset prices in the years to come. Not to mention the contours of international energy relations.

article continued here.

Matthew Hulbert
Matthew Hulbert, Contributor
Old-school energy, new world order