Saturday, 11 August 2012

University of Michigan economics professor: Shale gas revolution is a "win, win, win, win situation"


"commercial customers are paying inflation-adjusted natural gas prices that are close to the lowest in recent history, and about half the 2008 price" 

University of Michigan economics professor Mark J. Perry explains why the shale gas revolution is one of the most important developments for the US economy in at least 60 years:

America's ongoing shale-based energy revolution is one of the real bright spots in an otherwise somewhat gloomy economy, and provides one of the best reasons to be bullish about America's future. The shale revolution is creating thousands of well-paying, shovel-ready jobs in Texas, North Dakota and Ohio, and thousands of indirect jobs in industries that support the shale boom (sand, drilling equipment, transportation, infrastructure, steel pipe, restaurants, etc.). In addition, the abundant shale gas is driving down energy prices for industrial, commercial, residential and electricity-generating users, which frees up billions of dollars that can be spent on other goods and services throughout the economy, providing an energy-based stimulus to the economy.
Cheap natural gas is also translating into cheaper electricity rates, as low-cost natural gas displaces coal. Further, cheap and abundant natural gas is sparking a manufacturing renaissance in energy-intensive industries like chemicals, fertilizers, and steel. And unlike renewable energies like solar and wind, the natural gas boom is happening without any taxpayer-funded grants, subsidies, credits and loans. Finally, we get an environmental bonus of lower CO2 emissions as natural gas replaces coal for electricity generation. Sure seems like a win, win, win, win situation to me.
Read the entire article here
There is more than enough clean shale gas and oil in the US and elsewhere for at least one hundred years, probably for even longer. That´s why it is sheer madness to waste taxpayers´ money on subsidizing inefficient and unreliable wind and solar energy, which are still technically in a primitive state of development and commercially not viable. 

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