Growing production of shale gas in recent years is helping to make natural gas (NYSE:UNG) an attractive fuel option by keeping prices low and making energy independence for the U.S. a possibility. Production has reached a record high and it’s expected to continue with plentiful resources. Shale has been touted for its low emissions as well.
MarketWatch quoted Dan Pratt, Director of Equity Research at IHS Herold, who said, “It’s hard to argue against natural gas as a clean, abundant, and domestic energy supply. It should be a growing component of our energy supply going forward.” He continued by saying, “However, the speed of development will depend on many things, including economic, political, and environmental issues.”
There are shale oil fields currently located in Pennsylvania, Ohio, West Virginia, North Dakota, Louisiana, Texas and Arkansas, but Kim Pacanovsky, Managing Director of Oil & Gas at boutique investment bank MLV & Co., says there are at least 20 other basins at various stages of development.
“It’s a lot of gas, and it gives us decades to invest in, research and transition to other fuel sources for both transportation and electric generation… These resources can positively change the energy mix of the U.S.” said Pacanovsky per MarketWatch. Chevron (NYSE:CVX) recently became one of the largest leaseholders in Pennsylvania by acquiring 700,000 acres in Marcellus Shale.