Thursday, April 21, 2005

natural gas shortfall

Many of people have a corner on changes in the energy sector at this point, even if they don't have the full picture. Along those lines, Unplanner interviewed a Natural Gas company exec on his blog and the results were interesting. Some excerpts:

Natural Gas[p]! A conversation with an Industry Insider
The executive confirmed that the pessimistic projections of future gas supply were in fact the most probable to occur. In his professional opinion (which was backed by years of hands-on experience in the energy sector) the natural gas situation is on the verge of significant shortfalls. Depletion is taking an increasing toll on producers by forcing them to drill more frequently and in more challenging locations.
According to this executive, LNG is North America’s last hope. Although not expressed in those words, per say, it appeared to him that perhaps it is our only hope. (...)
. A further chokepoint for this country exists with the regasification plants. Only four are operational, none on the West Coast. Over a dozen have been proposed for construction along the coast but as of this spring, only one, Sempra’s Energy Costa Azul plant has actually completed the permitting stage and is under construction, with a completion date of early 2008, according to their website. The remaining LNG facilities still face numerous obstacles ranging from governmental permitting to local opposition groups.

A lot more at the source - check it out. The executive seems to think we needs lots of LNG to fill the gap by 2020, although it remains to be seen if the infrastructure will be in place to deliver.


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