Sorry for the length, but I didn't have time to write a short blog.

Monday, November 26, 2012

OPEC May Lose -- More about gasssssssssssssss


If the International Energy Agency report had been released during the campaign, imagine what would have happened to the talking points how lowered oil production, which was not entirely accurate, had lessened our dominance. With the release of the International Energy Agency's report, it would appear that we are indeed becoming a leader in production.

IEA reports that the US could lead in petroleum product production in as little as five years and be completely energy independent by 2035.  We will lead in exportation of natural gas by 2020.  Gas prices rise because of demand and the expanding growth of China, India and the Middle East account for 60 percent of that demand.  In other words, they continue to control demand and set market price by doing so.  As such, by the time the USA is oil net (exporting as much as we import) 90 percent of the demand for Middle Eastern oil will be going to Asia.  These gains for the US is in large part due to policy on use and efficiency.

Because the US actually has a policy is why we are showing growth and not the other way around. Other nations who do not have these policies will not fair so well.  The report also points that these policies could by time for a "much needed global climate agreement" which if put in place could reduce energy costs by as much as "20 percent on average."  The report goes on to say the controlled use of energy policy "would facilitate a gradual reorientation of the global economy, boosting cumulative economic output to 2035 by $18 trillion, with the biggest gains in India, China, the United States and Europe."

Looks like our efficiency policy may be paying off big dividends if we can convince a few folks that we do have a global climate problem and get busy doing what we needa to be done, instead of making jokes about it.