| | | Bill Powers: Give Up the Shale Gas Fantasy and Profit When the Bubble Bursts
By The Energy Report, on September 17th, 2013 jutiagroup.com
TER: Care to take a shot on where you think gas prices may end up in the next few years?
BP: The U.S. is heading toward world gas prices. To recap, this means double-digit prices within the next three to five years for a number of reasons. First, in addition to lower U.S. production, our imports from Canada are going to be diverted toward Asia through LNG exports. Canadian production continues to fall, and 2013 will mark the 12th year since it peaked. Canada will be unable to export to both the U.S. and Asia due to lower production and record domestic consumption. Second, the U.S. is now far more reliant on natural gas to generate electricity than it was in the 1970s. The U.S. got out of that gas crisis by building nuclear and coal-fired power plants, not through increased gas production. Last, this time it’s going to be very difficult to destroy demand because we are starting to see manufacturing come back to the U.S. and coal and nuclear plants are closing.
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Old Bill's been painting himself into a tight corner. I wonder how long a pundit can be can be wrong before
people stop listening to him? He needs to drop this, change the subject, and start peddling a more
plausible catastrophe scenario to generate speaking fees and sell books. |
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