August 1, 2008

Did he say what I think he said?

Using phrases like:
“… Entering a new age of gas abundance”
“This is a game-changer”
“…a paradigm shift”
“Shale gas makes the U.S. the Saudi Arabia of natural gas.”

Earlier this week, Chesapeake Energy Corp., CEO Aubrey McClendon, told a Washington, D.C. press audience that the U.S. has over 100 years worth of natural gas supplies.  

That’s significantly higher than other estimates, including those from the federal Energy Information Administration.  But to demonstrate that this isn’t simply hyperbole or wishful thinking, McClendon released a very detailed study just issued by Navigant Consulting and commissioned by the American Clean Skies Foundation, a non-profit advocacy group he founded, to show that other estimates fail to take into account the amount of “unconventional” shale gas from places like the Barnett and Haynesville Shale (that I blogged about last week). Shale gas development has become economical in the last five years due to technology advances in horizontal drilling and hydraulic fracturing.  

As America contemplates relying on natural gas for transportation a la the “Pickens Plan” in addition to the already heavy role natural gas plays for electricity generation, as a chemical feedstock and for heating our homes, a 100-year supply would definitely be welcome news.

Subscribe via RSS »