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Linn Energy, LLC (LINE) Message Board

  • rlp2451 rlp2451 Jan 11, 2013 8:42 AM Flag

    Fitch: Shale Boom Does Not Lead to Energy Independence

    US shale 'boom' boosts manufacturing, not energy independence: FitchRatings

    Pittsburgh (Platts)--10Jan2013/349 pm EST/2049 GMT

    The ongoing shale "boom" brings with it a huge boost to manufacturing, but energy independence isn't among them, according to a FitchRatings report released Thursday.

    "The primary impact of shale gas will be lower costs for US industry and consumers and expanded capacity and profits for petrochemical companies and energy-intensive material producers [like] steel and other metals, cement, pulp and fertilizer," according to "Shale Boom: A Boost to Manufacturing but not to Energy Independence," produced by five FitchRatings analysts.

    "Net oil imports have decreased and will continue to decrease, but the US will not achieve energy independence [defined as zero net imports] over the near to medium term," FitchRatings said.

    Net oil imports fell to 8.5 million b/d in 2011, from 12.5 million b/d in 2005, FitchRatings said.

    The FitchRatings report said that if shale gas and oil production is allowed to expand, the volumes will add to other comparative advantages for the US economy, including labor costs, demographics, supply chain security and transportation costs.

    "Low natural gas prices provide an additional competitive advantage to US producers in many industries, including chemicals, steel, copper, aluminum, cement, and other energy-intensive industries," FitchRatings states.

    However, "the return of more sophisticated levels of manufacturing will be driven more by economic fundamentals and technology than low energy prices."

    The FitchRatings report said the contribution of reducing consumption often is overlooked, but "in the long run should be more important that the increase in [oil] production because the changes in technology [such as higher mileage] are permanent."

    Shale gas' impact on the electricity industry is mixed, FitchRatings said: beneficial in the long run, but disruptive in the short run.

    "In the long run, cheap natural gas will help satisfy the growing demand for electricity at relatively low environmental as well as economic cost," the report said.

    "In the short run, low gas prices translate into low wholesale prices. This makes many coal-fired plants uncompetitive," and has already led to defaults of coal-fired electricity producers

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    • "Net oil imports have decreased and will continue to decrease, but the US will not achieve energy independence [defined as zero net imports] over the near to medium term," FitchRatings said."

      Contradicts the head line. What counts economically and strategically is North American supplies

      "The primary impact of shale gas will be lower costs for US industry and consumers and expanded capacity and profits for petrochemical companies and energy-intensive material producers [like] steel and other metals, cement, pulp and fertilizer," according to "Shale Boom: A Boost to Manufacturing but not to Energy Independence," produced by five FitchRatings analysts.

      Only because Obama and Progressives are still purposefully obfuscating in favor of battery technology which simply is not economically viable. Making it even less viable by imposing and hiding the cost of completely economically impossible base load solar, wind and starve human beings for corn based ethanol corruption.

      The unstated assumption is nothing will be done to get our vast Americans natural gas supplies displacing imported oil. Simply because Obama churlish agenda is economically unviable and our dishonored press will not supply the American people with the facts.

      "The FitchRatings report said the contribution of reducing consumption often is overlooked, but "in the long run should be more important that the increase in [oil] production because the changes in technology [such as higher mileage] are permanent."

      This is completely unacceptable from some one calling themselves an analysts. CBO did the study of the impact of CAFE or millage standards. As any one who took and past Econ 101 would expect as the cost per mile decline Americans drove or consumed ever more miles. Until Obamanoics and the first in American history dramatic and sustained drop in our real living standards.

      "Shale gas' impact on the electricity industry is mixed, FitchRatings said: beneficial in the long run, but disruptive in the short run."

      Yet again an unstated assumption our natural gas will not go to displacing imported oil. Exactly where a free market economy would directed it first. To compete with wild premiums of oil rather than the now bargin basement prices for American coal Asia pays - thanks to Obama and Progressives.

      It is amazing how RLP always finds clearly inferior and plain wrong junk to post. But it is in print so Ron^3 proclaims it valid without critical reasoning.

      Kinda like less than 10% of Revolutionary Americans owning guns. All that achieves is to inform every one else Ron^3 does not bother to read American history or think critically. So much easier to surrender Individuality to the cause of the intellectual elite who actually stage their mental shadow puppet show. Very sad as he will never progress beyond his first year experience by his choice alone.

    • Maybe no energy independence, but the effects of fracking are still amazing. And the technology was developed after many, many years of experimenting. The drillers knew the gas and oil were there, they just didn't know a profitable way of getting it.

    • Shale boom is just an extraction method. What the hell are you talking about and why are you wasting this board with constant "cut and paste". We all have access to these reports just like you do RIP IDIOT. Stop tracking posting garbage !!

      Sentiment: Strong Buy

 
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