EnergyFactor By ExxonMobil | Pespectives has a new home

Don’t forget those rural energy products

The White House last week announced a “Made in Rural America” export and investment initiative to some fanfare. It’s a good idea in theory, but as designed it appears the initiative could be improved.

That’s because the White House seems largely focused on boosting exports of agricultural products. Indeed, the initiative was announced by President Obama at the signing ceremony for the $956 billion farm bill.

The president and his senior advisors would be wise to remember that the American heartland produces more than just food for the world. It also produces increasing volumes of energy products like oil and natural gas.

I have listed below a few rural regions that are helping transform energy markets. Some of their products could be exported in ways that expand economic growth at home and add to American and global energy security.

Among these regions are:Nat_Gas_Map_2-2014

  • The Bakken shale in North Dakota and Montana
  • The Eagle Ford, Barnett, and Permian shale regions of Texas
  • The Fayetteville shale in Arkansas
  • The Haynesville shale straddling the Texas and Louisiana border
  • The Marcellus shale in several eastern states, most notably Pennsylvania
  • The Niobrara shale in Colorado and Wyoming
  • The Utica shale in Ohio
  • The Woodford shale in Oklahoma

With the partial exception of the Barnett shale, which encompasses Fort Worth in addition to the surrounding countryside, each of these major shale formations embodies rural America.

As I have noted before, the federal government needs to remove the obstacles to trade in U.S. energy products. An obvious place to start would be by speeding up the exceedingly slow process for Department of Energy approval of LNG export applications.

Our leaders should promote global trade for energy products – just as they do for autos, agriculture, pharmaceuticals, and a multitude of other products. American exports of all products can help boost the economy at home while strengthening diplomatic ties abroad.


No Comments

Already have a username? Log in to comment. First-time commenting? Sign up to create your username. It's easy, and we won't share your information.

  • Worth a deeper look...