To follow up with a comment on a previous post about the volatility in the natural gas market, the Wall Street Journal published are article called Big Oil Bangs the Drum for Natural Gas. This article discusses how companies have done a good job providing natural gas reserves for the future of energy, but they also point out the fact that the boom in production has created a "global gas glut", possibly lasting until 2020, keeping the prices at a low. And therefore if the United States produces such a large supply of natural gas, exporting might be a good idea?
Looking at the environmental benefits of natural gas, the world should take advantage of the low prices and high supply, creating a shift in energy consumption. Coal is cheap and abundant but natural gas is cleaner. Unlike oil though, there has to be an infrastructure in place to transport gas, pipelines must be installed. So what are the dis-advantages to use natural gas more?
From a business perspective, the market for natural gas can be very risky right now in the short run. The potential for a quality long term investment would be a good idea. The future for natural gas looks good.
As stated in the article, "In its 2030 energy forecast last month, ExxonMobil predicted a shift toward natural gas by businesses and governments precisely because it is so reliable and affordable."
Subscribe to:
Post Comments (Atom)
Okay, but if I'm playing the skeptic, wouldn't ExxonMobil WANT to say that natural gas is the way to go? I mean, it seems a good political and economic bet. But are we to trust what they say about the security of that market? I'm not so sure.
ReplyDelete