The lovely adds on TV and in the newspaper announce fracking is going to give us flower covered fields, low cost natural gas for baking cookies . It is clean, and it is right here, so lets get at this benign freebee.
Last night I read a number of oil industry news sites. In the last few weeks, an executive being questioned by a government body testified that the cost of: exploration, piping new fields, and the very high cost of fracking means this gas is expensive compared to traditional gas wells. Once in the pipeline it's mixed, so this raises the overall cost of gas. Thus...........the public will see higher prices for NG.
Let me explain it further because it flys in the face of economic logic. The more supply they bring to market the higher the price will become. Supply up, demand flat, should mean lower prices, but that ain't gonna happen. Add to that, some of this gas is already promised for liquidification and sale to other nations. So, more supply means higher prices and not much of an increase in the actual supply for the domestic consumer, just the risk to ground water and the ever present danger of gas line explosions, of which there are dozens each year, remember the biggest recently in San Francisco and south of Dallas. (and earthquakes?)
Fringe:
ReplyDeleteAnother win loose situation huh?...Pop'
Fringe:
ReplyDeleteIn economic theory, the law of supply and demand is considered one of the fundamental principles governing an economy. It is described as the state where as supply increases the price will tend to drop.
What's going on here?
Fringe,
ReplyDeleteYou made me learn about "fracking" - I am concerned about doing that impacting the aquifers more than causing earthquakes. Was that Okie quake caused by fracking? I seriously doubt that. Would I suggest fracking along the New Madrid fault or the Wabash Valley Fault?
No, absoluteley not.
As to NG - I think T. Boone Pickens is right and ever semi-tractor needs converted to run on natural gas. IDOTs trucks and snowplows use NG.
Ron