Thursday, June 23, 2005

ExxonMobil CEO: North American Gas Production "Has Peaked"

Well, it doesn't get blunter than this: via, ExxonMobil CEO Lee Raymond says "Gas production has peaked in North America".
Asked whether production would continue to decline even if two huge arctic gas pipeline projects were built, Raymond said, "I think that's a fair statement, unless there's some huge find that nobody has any idea where it would be."


The U.S. Energy Information Administration estimates that natural gas production will be flat this year and increase only one-half percent next year.

At the same time, demand for the cleaner burning fossil fuel is expected to grow by two percent this year and almost 2.5 percent in 2006, according to EIA, the statistical arm of the Department of Energy.

Leaving LNG or demand destruction through pricing as the only mechanism for reducing cost. Ergo, coal, ergo nuclear for electricity baseload generation. You want a reason why we don't want an official energy policy? It's myopic policies that encourage natural gas use above all else.