"Divine Intervention": Drilling Boom Revives Hope for Natural Gas, Prices Fall By 42% in Two Months
The new drilling boom uses advanced technology to release gas trapped in huge shale beds found throughout North America — gas long believed to be out of reach. Natural gas is the cleanest fossil fuel, releasing less of the emissions that cause global warming than coal or oil.
Rising production of natural gas has significant long-range implications for American consumers and businesses. A sustained increase in gas supplies over the next decade could slow the rise of utility bills, obviate the need to import gas and make energy-intensive industries more competitive.
“It’s almost divine intervention,” said Aubrey K. McClendon, chairman and chief executive of the Chesapeake Energy Corporation, one of the nation’s largest natural gas producers. “Right at the time oil prices are skyrocketing, we’re struggling with the economy, we’re concerned about global warming, and national security threats remain intense, we wake up and we’ve got this abundance of natural gas around us.”
Domestic natural gas prices have already plunged 42% since early July, an even faster drop in price than oil or most other commodities, in part because the rapid supply growth has begun to influence the market (see chart above, prices have fallen to the lowest levels since early January 2008).
MP: One more reason that inflation's not a problem: energy prices are plummeting. Natural gas has fallen by more than 42% in two months, and gasoline was spotted for $2.99 per gallon this morning in Mississippi.