• 3 hours Saudi Aramco CEO Affirms IPO On Track For H2 2018
  • 5 hours Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 6 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 4 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 5 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 5 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 7 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 7 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 7 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
Alt Text

The New Challenger To Lithium Batteries

The lithium-ion battery is head…

Alt Text

The Approaching U.S. Energy-Economic Crisis

The connection between energy and…

Alt Text

The Next Big Digital Disruption In Energy

Blockchain technology is transforming the…

Gary Hunt

Gary Hunt

Gary Hunt is President, Scalable Growth Strategy Advisors, an independent energy technology and information services adviser and a partner in Tech & Creative Labs, a…

More Info

How Domestic Energy Production in the US will Stimulate Economic Growth

How Domestic Energy Production in the US will Stimulate Economic Growth

The Q2:2012 economic reports are in and—to use a technical term—the results suck!  GDP growth has slowed to 1.5%, unemployment rates remain stubbornly high at 8.2% over average nationwide but the damage to youth, black and Hispanic and those with less than college educations are horrible.  Clearly we need an economic shot in the arm.

How could there possibly be any good news on the horizon?

The good news is the big shift in energy is a complete reversal of fortunes for North America and the US economy in particular. Less than a decade ago, the conventional wisdom was America was running out of energy with ski slope-like depletion rates from conventional  oil and gas sources and the prospect of building a fleet of LNG terminals to import high priced natural gas from the same volatile and often unfriendly places that provide our imported oil.

But a funny thing happened on our way to the economic poor house and a world in climate crisis.  The inconvenient truth is a combination of disruptive innovation technology in the form of horizontal drilling and hydraulic fracturing, the ingenuity and persistence of wildcatters like Mitchell Energy and others who put it to work, and that innate ability of America to reinvent itself just when we need it most has resulted in a complete reversal of both our energy and our economic fortunes.

The inconvenient truth is low priced natural gas is doing more to clean our environment by reducing coal emissions than the sum of all the intrusive EPA regulations.  Natural gas produces an immediate 40% savings in emissions compared to coal.  There is no technical risk, no Solyndra-like deals required, no new Federal subsidies.  It’s faster, cleaner and a lot cheaper than US EPA.

It’s the economy stupid—-and we decided not to give up on the American dream!

The growth of domestic energy production from new technology and America’s renewed resolve is changing everything.  The election is still all about the economy and whether the country is going in the right or wrong direction.  But the growth potential for domestic energy production changes everything.

America’s recoverable energy resources could produce as much as $7 trillion of economic value rippling through our struggling economy according to a recent study by the Manhattan Institute.  That economic shot in the arm could generate perhaps $2 trillion in revenue for federal, state and local governments over the next 20 years. Domestic energy growth in places like North Dakota, Pennsylvania, Texas and elsewhere are showing results today producing jobs and unlocking hoarded cash sitting on the sidelines waiting for a better political, regulator and economic climate for investment.

Another inconvenient truth is that Americans broadly support a clean, healthy environment.  We get it, we do!

But we have come to the conclusion that it is not necessary to choose between a clean environment and a sustainable economy.  We support clean air and clean water but we increasingly believe our environmental laws have been hijacked by both business and environmental special interests.  They lack common sense, fail to require agencies to consider the economic consequences of their actions, and fail to reasonably balance competing interests equitably.  Congress created this mess and tolerates waves of onerous regulation that are hugely expensive,  create uncertainty and that may not serve the public interest.

Since the Carter Administration America’s de facto energy policy has been premised on a perception of peak oil, energy shortage and imports.  The inconvenient truth is the reversal of fortunes from the growth of domestic energy production in shales has debunked that theory.  Since our politicians cannot agree on a more realistic set of national energy policies—the market is deciding for them.

It’s still the economy stupid—but the markets are giving us domestic energy production growth and it is making a material difference.  The real question is whether politicians will jump on the domestic energy growth bandwagon or stand in the way of completing our reversal of our economic misfortunes and getting back to growth.

By. Gary L. Hunt




Back to homepage


Leave a comment
  • Scott on August 02 2012 said:
    Thank you for a realistic view of the energy and economical crises. It's refreshing.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News