Natural Gas
Economic gains from unconventional oil and gas development cross state borders
Newsworthy events that occur during the holiday season often don’t get the attention they deserve. Such was the case with the latest study from the energy consulting group IHS Global Insight on oil and natural gas development from unconventional sources like shale, which came out at the end of 2012. The report’s most significant finding is that the benefits of unconventional oil and gas development are being felt even in those states without oil and/or gas production.
An extraordinary year for energy
I have written recently about ExxonMobil’s Outlook for Energy, which looks out to 2040 about future economic and energy trends that will shape our world. But as we close out 2012, it’s worth looking back on a few developments that made this year so extraordinary, many of which I covered at ExxonMobil Perspectives.
Relying on sound science in the United Kingdom
Most reports about the British government’s decision to rescind its moratorium on exploratory hydraulic fracturing have focused on the economic and environmental advantages of going forward with energy production from shale. But it’s important to note an equally important factor that weighed in the government’s decision: the science that convinced authorities that hydraulic fracturing could be done safely and responsibly in the United Kingdom – just like it is in the United States.
Re-Affirming the Benefits of Free Trade
The government has released a long-awaited study concluding the U.S. economy as a whole would benefit from exports of some of the abundant natural gas supplies that have been unlocked by the industry’s new technologies. The study looked at all sectors of the economy and in every scenario concluded the net gains from exporting natural gas were greater than any localized loss. This is how free trade works — whether you’re talking about U.S. exports of wheat, computers, or automobiles.
Sound science and the truth about “fugitive emissions”
Two new studies directly address a claim from last year when some Cornell scientists asserted that natural gas from shale produces more lifecycle greenhouse gas emissions than coal. Those scientists blamed “fugitive” methane emissions said to escape during the recovery of natural gas. After the study’s release, The New York Times and other media outlets gave the report tremendous coverage. But coverage does not equal credibility.
Producing jobs and economic growth by producing more oil and gas
Energy historian Daniel Yergin has a must-read piece in The Wall Street Journal that gives a big-picture view of the unconventional oil and gas revolution transforming the American economy. The Journal piece accompanies the recent publication of a report prepared by Yergin’s IHS consulting group that highlights the economic contribution of dramatically increased oil and gas production from unconventional sources like shale and tight rock. The numbers reported by Yergin and IHS are extraordinary.
