June 21, 2013
The U.S. is enamored by the shift in natural gas from the traditional oil and gas. The transition was a process link of smooth integration for oil and gas. The ease in movement to natural gas allowed for the development of the similar process and constructs. The renewable market flags changes and disruptive knowledge requirements. The underpinnings of energy development promoting the “US Energy Sec: To Move ‘Expeditiously’ on Gas Export Applicants” is swift move to lock in the deals.
Financial Market News offered the news that “the world’s largest oil consumer is experiencing a massive boom in shale oil and gas production, Moniz said the United States still needs to address its dependency on a commodity that has forced it to get increasingly involved in the affairs of some of the most volatile regions in the world. At issue is whether U.S. natural gas producers will be able to sell their product abroad where prices are much higher in global markets than in the United States. The glut of unconventional natural gas has dampened domestic prices, and opponents of exporting it worry sales abroad could raise prices and hurt energy-dependent U.S. manufacturers.”
The boom doe not translate into real world pricing as gas prices are volatile effecting cost of overall commodities and skill trades. The cost of oil and/or fuels effects the nexus of food, transportation, and manufacturing. The implications are dominoes ever being pushed to a tipping point that enters into finance, the stock market and small business growth.
“Moniz said the DOE would act “expeditiously” in its review of applications to export natural gas. “We are moving very soon into looking at the dockets,” he told reporters after a speech at an EIA energy conference. Moniz said his department will act on applications before the end of the year, and that they will review “as many as we can responsibly go through.”
Again, what we see in the U.S. is reflective of 2009’s stimulus and other subsidies that faltered over the short-long-term because the rush accelerated to meet a demand without the foundation to promote verification, viability and sustainability. The cost of the rush closes off the smaller markets reaps benefits for the informed and pushes the market into a greater divide.
The role of economics is to gauge and analyze supply and demand to produce growth and not outliers of successes that do not translate into over economic development.
Moniz said, “We have said we will do a case-by-case evaluation of all the applications, and I have also stated we will do them in the order as posted,” he said, without specifying how many applications had been received. Unconventional oil and gas explosion has been “a game changer” that will have major implications for the economy, environment and national security, he said.”
Unconventional oil is the game changer but may also be the tipping point to changes. The increased capacity of production without suitable and negotiated partners in trade will lead to an embargo represented in the 1970’s . How can this leap be taken? The oversupply cause ripples that must be managed through considered trade or forced solutions. The role of today is to determine how to manage the probability of oversupply.
- National Industry And Regulatory Experts Present Basis For Stray Gas Investigations And Water Management Associated With Unconventional Oil & Natural Gas Development (wateronline.com)
- Natural Gas Report and MIT Research (landsdssustainable.com)
- Powering the Future (freebeacon.com)
- What Investors Need to Know About the U.S. Oil and Gas Industry (dailyfinance.com)