13 Oct 09-Natural gas abundance

A recent story on the news website www.telegraph.co.uk had an interesting perspective on natural gas supply. An article by Ambrose Evans-Pritchard talked about information presented at the World Gas Conference held in Buenos Aires. Rather than stories about dwindling supplies, most of the presenters at the conference talked about rapidly expanding supply due to new technology. It now appears that 3-D seismic imaging combined with new technology will allow natural gas to be extracted from shale and methane beds in many locations around the world. The global energy balance could quickly change. Russia’s dominance in natural gas and America’s shortage could be altered. Some experts say proven natural gas reserves around the world have now risen to a 60 year supply and they continue to rise. According to the article, the U.S. Energy Department expects shale to meet half of U.S. gas demand within 20 years. That will cut the need for imports. If this analysis is correct, it will have huge ramifications for energy supply, and it will have a major impact on nitrogen fertilizer prices over the long term. Natural gas is the primary feedstock in nitrogen production. I’m Kevin Hursh.