There was a very peculiar data point during last week’s commodity sell-off that I didn’t get a chance to address here. Natural gas prices rose while oil and other industrial commodities has a tough time catching a bid at all.
I’m not sure that was connected to what I’m about to share with you but it’s definitely something I’m keeping in mind.
The International Energy Agency (IEA) is out with a study that tells us natural gas usage will really start coming into its own based on several factors. As you guys know, nat gas trucking is one of my pet causes so this was pretty encouraging to see.
The New York Times has the story:
Are we entering a golden age of gas?
The answer is yes, according to a report with just that title released on Monday by the International Energy Agency — as long as the price for natural gas remains low and governments adopt strong regulations to overcome environmental concerns about hydraulic fracturing.
The report projects that natural gas could make up 25 percent of the global energy mix in 2035, up from 21 percent now, replacing coal, nuclear and some power from renewable sources like wind and solar. The drivers of the fuel’s growing popularity are uncertainty about nuclear power after the recent Japanese disaster, an anticipated boom in demand from China and, most important, the widespread development of gas fields from unconventional sources like shale rock.
Critics of our new methods of drilling for gas will point to the ecological cost of having such an abundance of it. I will then point to the fact that we will be using something, and gas is less dirty than both coal and oil and less frightening than nuclear. And we’re certainly not going to be driving cars with windsails on the roof, so let’s be pragmatic about it.