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Discussion: (9 comments)

  1. Shale Gas according to Rex:

    Rex W. Tillerson, the chief executive of Exxon Mobil, which spent $41 billion to buy XTO Energy, a giant natural gas company, in 2010, when gas prices were almost double what they are today, minced no words about the industry’s plight during an appearance in New York this summer.

    “We are all losing our shirts today,” Mr. Tillerson said. “We’re making no money. It’s all in the red.”

    Source: WSJ, posted on yesterday’s shale post.

    1. From same article: “Mr. Eads” referred to below is one of the bankers brokering many of these deals….

      “He is like the bartender serving drinks for people who can’t handle it,” said Fadel Gheit, a managing director at Oppenheimer & Company, about Mr. Eads. “And the whole gas industry has gotten a rude awakening, a hangover, with gas prices plummeting. The investment bankers were happy to help with a smile and get their cut.”

      ..THAT sounds familiar.

        1. It’s not the novelty of people doing dumb things I am highlighting, it’s the contradiction between what I read in this article and the hype surrounding shale gas.

  2. Citizen B.

    There is not any National Hockey League action right now but there is a very powerful hockey stick in play.

    See the U.S. Natural Gas Production Chart graph above. :-)

    1. You mean this season’s “hockey stick” chart.

  3. 3. Over the same period, total US natural gas production has increased 25%, from 52 billion cubic feet (Bcf) per day to 65 Bcf per day, driven largely by unconventional gas activity (see bottom chart above).

    Great. Pipeline imports from Canada have declined, probably to minimum operating levels (MOLs), and LNG imports were never a factor in U.S. consumption. Now what. Oh, I know, U.S. natural gas production has flatlined in 2012. Now what. Let’s wait for LNG exports to start in 2015 and that elusive chemical sector to ramp tomorrow.

  4. MacDaddyWatch

    American entrepreneurship, capitalism and free-markets launched the current boom in mid-2006; years before Obama took office.

    WE DID THAT…Obama didn’t do that–he had nothing to do with that.

  5. Jim Kearns

    Right on Mark. And don’t forget the geopolitical realignment our energy independence is generating. Also, we are entering an era of abundance produced by computing and robotic power in manufacturing, water purification, agriculture, etc. etc. Mark, please take a look at a book entiled Abundance that covers this side of the equation and inform your readers about it.

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