About Me

My photo
This site is the inspiration of a former reporter/photographer for one of New England's largest daily newspapers and for various magazines. The intent is to direct readers to interesting political articles, and we urge you to visit the source sites. Any comments may be noted on site or directed to KarisChaf at gmail.

Friday, December 20, 2013

Shale revolution reality checks -- By William C. Triplett II, The Washington Times

Illustration by Greg Groesch/The Washington Times (Illustration by Greg Groesch, The Washington Times)

America’s bright fuel future faces a hostile White House

The International Energy Agency (IEA) made a mistake. Formed in 1974 at the behest of Secretary of State Henry Kissinger and headquartered in Paris, the IEA was designed to be the organization for energy-consuming countries, countering OPEC, the organization representing the producers. It never really had much of a political role, and these days, its value lies in its statistics and energy predictions. Each fall, the IEA produces its "World Energy Outlook," and in 2012, the IEA estimated that "by around 2020 the U.S. is projected to become the largest global oil producer."

However, it looks like IEA's prediction was way off. In fact, this year, the IEA has predicted that the United States would take the lead in 2015, not 2020. We shouldn't be too hard on the IEA's number crunchers, though. Almost everyone who has looked at the American energy revolution has been on the low side, leading to a scramble to make revisions upward. Just this week, the U.S. Department of Energy's Energy Information Administration (EIA) predicted that U.S. oil production would near a "historic high" by 2016. By this time next year, we may find that projections from both the IEA and the EIA were still too low.

"Historic high"? "Largest global oil producer"? That's pretty heady stuff, given that less than a decade ago, the United States was looking at a death spiral in oil and gas production, and experts were making very good livings predicting the imminent arrival of "peak oil." Statistics and predictions are all very well, but how does this play on the ground?

Reality check I: Let's look at Atascosa County, Texas. It's the closest county south of San Antonio. Until five years ago, it was struggling and had been for decades. There was not a lot of economic activity, and the young people who could, left the county for San Antonio or elsewhere. Twenty percent or so of the population was below the poverty level. Average income was below $15,000 per year.

(Click link below to read more)
READ MORE Sphere: Related Content

No comments:

Post a Comment