Link here to Forbes.
.... a key element of both the Romney and Obama energy platforms: increased
domestic natural gas production. It is generally expected that the
Obama administration will continue to push for more oversight and regulation of shale fracking.
The April 2012 EPA decision to reduce air emissions from fracking could
well be followed by an effort to end exemptions from certain elements of
the Safe Drinking Water Act. In the case of the EPA air emissions
oversight, the rules were relaxed somewhat, and industry was given two
years to bring activities into compliance.
In the case of water regulation, the conversation may well continue
to drag along slowly for some time to come. In the end, there is only
so much regulation that is likely to occur at the national level. The
2005 Energy Policy Act essentially gave most regulatory responsibility to individual states, and it will probably remain there.
Regardless of the final regulatory outcome, gas production is likely
to soar, especially as gas use grows in transportation, industry, and
electric generation. And don’t forget the significant potential for LNG
exports, as numerous license requests have already been tendered.
The
Marcellus area, and Pennsylvania in particular, should continue to see
rapid growth.
A new study
from ASD Reports announced today suggests that production could increase
more than seven-fold from 2011 levels, from just over 1,000 billion
cubic feet equivalent (bcfe) in 2011 to almost 5,000 bcfe in 2015,
before finally leveling off at over 7,600 bcfe in 2020.
I'll be sleeping better tonight.
