Remember all this? America is running out of natural gas. Prices will soar, making imported liquefied natural gas (LNG) and T. Boone Pickens’ wind farm plan practical, affordable and inevitable. Well, reality intervened. We are having an energy transformation, but just the opposite of what the non-market energy planners predicted.

Shale Gas Revolution

Barely two years later, America (and the world) are tapping vast, previously undreamed-of energy riches – as drillers discover how to produce gas from shale, coal and tight sandstone formations, at reasonable cost. They do it by pumping a water, sand and proprietary chemical mixture into rocks under very high pressure, fracturing or “fracking” the formations, and keeping the cracks open, to yield trapped methane.

Within a year, U.S. recoverable shale gas reserves alone rose from 340 trillion cubic feet to 823 tcf, the Energy Department estimates.…

“Truth is tough.  It will not break, like a bubble, at a touch, nay, you may kick it all about all day like a football, and it will be round and full at evening.”

~Oliver Wendell Holmes, The Professor at the Breakfast Table

 Something big just happened in Ontario–something the Wind Lobby fears. Recently, Minister of the Environment John Wilkinson held fast to what had been a “for now” moratorium policy where tough talk about environment-before-wind was followed by turbine contracts and business-as-usual wind development.

It is about time for a change. Rural Ontarians are mad about wind development, as are Lakeside communities, fishermen, and boaters.

Indeed, Ontario is about as fed up as a province can be with a laundry list of discontent ranging from 1) increased hydro bills and announced electricity rate hikes of 40% in the next years; 2) a tax-grab ‘Harmonized Sales Tax’ and 3) a Green Energy Act, which took away Municipal rights to project planning and superseded other environmental legislation.…

[This post by Guillermo “Billy” Yeatts (see profile at the end of the post) originally appeared at MasterResource on April 30, 2010. It is reprinted in response to the move of the Middle East toward more open, democratic, and modern societies. Can private ownership of oil and gas assets be far beyond?]

The history of oil and gas production in Latin America has been characterized by a continuing tug of war between the state as owner of the subsurface (Spanish colonial tradition) and private producers in pursuit of profits. Private participation in the industry has been limited to brief periods and restricted to specific phases of oil and gas production.

The typical pattern is that foreign oil and gas companies are allowed into a country to locate and initiate production.…

[Editor note: Part II tomorrow will summarize unconventional gas developments in Europe and Asia.]

In 2003 and again in 2005, Alan Greenspan, Chairman of the Federal Reserve Board, called on America’s governors and natural gas users to embrace vastly larger imports of methane energy. In his words: “North America’s limited capacity to import liquefied natural gas (LNG) has effectively restricted our access to the world’s abundant gas supplies.”

As he was speaking, a revolution was brewing under his feet. New methods of producing gas from unconventional resources–tight gas, coalbed methane (cbm) and shale gas–had greatly expanded the universe of gas resources available throughout the world.

By the end of that decade, the U.S., Australia and Canada would be able to book unconventional reserve additions in excess of annual production from all gas sources.…