Tout le monde is gushing about how the U.S. is going to become energy independent (or close to it), and that natural gas is part of the story. Natural gas ALSO, it is said, will help lead to that so-far-elusive U.S. manufacturing recovery.
And so forth.
Here’s another view, from The Automatic Earth — the last 2 paragraphs of a piece headed, “Shale Gas Reality Begins to Dawn” (bolding in original):
Ironically, just as the washout begins, natural gas prices may have bottomed. Conventional natural gas in North America peaked in 2001. Coal bed methane and now shale gas have been revealed to be massively overblown as an energy source. Producers are reaping the consequences of malinvestment and will be going out of business. Demand has been building with the transition from coal to natural gas for power generation. This is an ideal set up for a supply collapse and subsequent price spike.
North America is poised for a huge natural gas shock. Far from being an exporter, North America is going to experience a natural gas supply crunch. Prices will be rising at the same time as peoples purchasing power falls precipitously, thanks to deflation. The structural dependency on natural gas that has been cemented in recent years is going to guarantee maximum pain as prices reconnect with reality.
Source: http://electricalcontractor.com/?p=7299
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