The Department of Energy met last week to discuss whether it’s worth going after more natural gas, and the answer to their question will have implications for the related exchange traded fund (ETF).
The Department estimates that there is at least 10 year’s worth of natural gas in coal and shale, enough for the entire United States, reports Renita Jablonski for MarketPlace. Geologists are also contemplating the oil trapped under Colorado, Utah and Wyoming. The amount in those places could equal the amount we have already used in all of civilization.
The main problem is that these natural resources ar trapped under non-porous rock, so it will not flow up easily. The gas would have to be flushed and the oil heated and extracted, costly procedures that use lots of water, energy and money.
The major problem is that carbon would be released into an already warming atmosphere, and limited groundwater would be wasted upon extraction. So, the double-edged sword remains, more domestic energy, or more harm to the environment?
United States Natural Gas (UNG) could be affected, either way. The fund is down 5.5% year-to-date.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.