But what if it's all just a short-term bubble?
We’re being told that – thanks to technological advances like hydraulic fracturing and horizontal drilling – the US is undergoing an energy revolution, leading us in a few short years to become once again the world’s biggest oil producer and an exporter of natural gas. According to the Oil & Gas Industry and their proponents, “fracking” will provide the US with energy security, low energy prices for the foreseeable future, more than a million jobs, and economic growth.
“There’s no doubt that we’re seeing an industrial revolution… taking place because of the shale revolution.”
–Ed Morse, Global Head of Commodities Research at Citigroup
“We have a supply of natural gas that can last America nearly 100 years, and my administration will take every possible action to safely develop this energy.”
–President Barack Obama
“[The Utica Shale is] the biggest thing economically to hit Ohio, since maybe the plow.”
–Former Chesapeake Energy Corp. CEO Aubrey McClendon
“[The surge of U.S. oil and gas production] is the biggest change in the energy world since World War II.”
–Fatih Birol, Chief Economist at the International Energy Agency
“Many people in the oil industry were skeptical [that we had reached peak oil], and the extraordinary recent expansion of unconventional gas and oil production in North America proved the optimists to be correct.”
–Christof Rühl, Group Chief Economist at British Petroleum
Pointing to record low natural gas prices and increased production, policymakers and the media on both sides of the political aisle, as well as investors and utilities, have bought the hype and are shifting their plans and proposals with the expectation that the shale revolution is here to stay.