Econintersect: The U.S. Energy Information Administration (EIA) has issued a report that shows projections for growing natural gas production and consumption for at least the next 27 years. This is in direct contradiction with a report by GEI News two days ago that called the U.S. natural gas boom a “Ponzi scheme“. The EIA indicates the spike in consumption in 2012 is not sustainable and only occurred because of historically low prices; but overall for the 29 year period from 2011 to 2040 natural gas consumption will grow by 21% in the U.S. U.S. production is projected to increase by 33% over the same 29 years, with the excess production being exported.
Click on picture for larger image of solar powered gas well.
The EIA projections are based on a medium estimate for oil prices (50% rise) over the time interval. The the price increase for natural gas is estimated to be approximately 100%. Both production increases and prices will be greater for natural gas if oil prices rise faster than 50% and lower if oil prices rise more slowly.
Following are some of the graphics from the EIA report.
Sources:
- Market Trends — Natural Gas (U.S. Energy Information Agency, 15 April 2013)
- Engdahl: Shale Energy is a Ponzi Scheme (GEI News, 15 April 2013)
Hat tip to Sig Silber.
