Many medium-term views of the future role of natural gas in our domestic energy economy are uneven at this time. Gas supply is dominated by the positive message surrounding shale production; however, the Gulf of Mexico oil spill incident may cast a shadow over all U.S. hydrocarbon production in the immediate future.
The Alaska Pipeline Project is conducting an open season; however, the $30 billion investment seems daunting in these economic times. Sparks of interest in gas demand may be developing around natural gas vehicles and state performance standards may force switching of some coal-fired power generation to natural gas.
With that said, the federal role for national carbon remediation strategies is not yet clear – at least in the form of a comprehensive environmental and energy bill that seems capable of passing and yet futures prices give every indication of near-term market stability. Analysts go back and forth between the positive and the largely unknown. More to come.
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