"Consider the consequences of having huge quantities of cheap natural gas
available. It will make new coal-fired power plants uneconomic, but it will
also make new nuclear plants uneconomic. It is ironic that these two longed-for
goals of radical environmentalists are being achieved simply through economics,
without the need for any regulation.
But it is ironic also that cheap gas will completely remove the need for
electricity generated by solar or wind—much to the chagrin of environmental
zealots. And all those folks hoping that energy prices would continue to rise
and that electricity costs would “skyrocket” will be sorely disappointed."
MP: The huge bonanza of cheap abundant natural gas is the most positive development in America's energy outlook in 50 years as Mort Zuckerman wrote in the WSJ last November, where he also suggested that a seismic shift in the energy landscape as large as the recent shale revolution is extremely rare. One of the profound implications of the "shale gale" is that its remarkable abundance will displace not only coal and nuclear as energy sources, but also solar and wind energy as well, as Fred Singer points out.
Fortunately, "shale gas seemed to sneak up unannounced to the media and Beltway
elites, even though people inside the gas industry realized several
years ago what was rapidly taking place," according to AEI's Steve Hayward. "One overlooked aspect of the current technology-driven fossil fuel
energy boom going on in the U.S. right now is that if Washington had any
premonition it was going to happen, it would surely have done
something to stop it."
Update: The chart above shows natural gas production through February as reported today by the EIA. On a 12-month moving average basis, natural gas production in February set another all-time record and went above 2.4 trillion cubic feet for the first time ever.
HT: Warren Smith