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April 6th, 2010

Natural Gas Depletion May Drive the Use of Alternative Power Resources


Recently, it has been uncovered that the Energy Information Administration (EIA) has underestimated the amount of natural gas available based on the current production facilities. With this new information, it leaves many questions on how natural gas will play a role in energy use, as well as in the development of alternative power facilities. Natural gas is often perceived as a modern day solution to supplementing our energy needs, from LNG to new power facilities utilizing natural gas. Although natural gas is a depleting resource, we currently have an abundant amount available and new technologies are being developed to increase its efficiency. If the price of natural gas goes up, will it drive the demand for new alternative power facilities?  Or, will it drive the demand for more drilling and exploration — a definite boost to today’s economy? As natural gas supply becomes more of an issue, will we see a substantial amount of federal support? Or, will this force states to address their own energy concerns (just take a look at Texas)?

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