Plan to leverage lower cost natural gas and natural gas liquids, part 2

Come on baby light my fire ………

The time to hesitate is through. It’s time to use natural gas to light that fire. Gas prices were at a 10 year low this year .Switching, or switching electric power generation from coal to natural gas, has been on the rise since the abundance of reliable low cost natural gas has occurred these past two years. Since 2006 natural gas has grown as the fuel used to provide nearly 25% of electricity in the US. It use for power generation is forecast to grow to up to 50 % in the future. I realize there is resistance to fracking and the development of unconventional gas, but the time to hesitate is through. Let’s examine some of the consumer and environmental benefits at a high level.

For the consumer there will be considerable utility cost savings and new job creation. Lower energy and feedstock prices ( see part 1;plan-to-leverage-lower-cost-natural-gas-and-natural-gas-liquids-part-1 ) will create a manufacturing resurgence .As LNG and CNG infrastructure is built out and truck and auto fleets switch we could see gas powered vehicles accounting for as much as 25% of the fuel used for transportation at some point in the future. This will result in lower operating cost and significantly lower emissions. With the switching to gas for power generation the US has recorded the globes largest reduction in greenhouse gas emissions, by about some 450 million tons.

The fire we need to light is one of energy policy leadership. We need to set a clear direction for our country of energy security and significantly increase our reliance on domestic energy. We need to get behind shale oil and gas production. Lastly we need streamlined, predictable and consistent regulation.

You know that it would be untrue .If I were to say to you: Gas prices won’t get much higher. We have the potential to be an energy exporter if we have the political and corporate will. As a country we need to decide if we will let global market forces dictate gas prices for the long term.

As a business growth consultant I see potential to reverse our economic decline, create jobs, and allow many privately and closely held businesses prosper. We need a good national strategy aligned with our domestic and foreign policies and the commitment to execute the plan to achieve that strategy.

Time to set the economy on fire, yeah

Jeff

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