Shale Technology Has Been Success
Horizontal drilling and hydraulic fracturing technologies have arrived just in time.
Natural gas supplies about 22 percent of our total energy requirements, and that is projected to remain fairly constant to at least 2030. The green energies such as solar and wind account for less than 1 percent of electricity generation and are not projected to reach more than 2 percent by 2030, according to our own Department of Energy. At the rate these green industries are failing and taking our tax money with them, even that seems like a stretch.
In the early part of the last decade, domestic production of natural gas from conventional sources was falling like a stone driving up the price. In October 2005, the price for a thousand cubic feet of natural gas averaged $10.33 (200 percent higher than today) and spiked as high as $14.
People who heated their homes with natural gas were very concerned, and the higher price for this basic fuel rippled throughout the economy.
Today, thanks to these technologies, natural gas is priced at about $3.40 due to the increase in supply from shale gas development.
Each of us has money in our pockets today or exercised our own discretion in spending the money saved on other consumer items.
Shale gas is being developed aggressively in about 15 states. Half of the natural gas consumed today is produced from wells drilled within the last three-and-a-half years, and natural gas produced from shale and tight sands using horizontal drilling and “fracking” technologies account for 46 percent of total gas consumption.
This effort has been so successful that we have now increased our total natural gas reserve estimate from a 10-year supply of 211 trillion cubic feet to a 90- to 116-year supply of 1,750 trillion cubic feet.
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