United States EIA chief safeguards gas manufacturing quotes

The head of the United States Department of Energy's data as well as analysis arm on Wednesday protected the method his company evaluates natural gas plays in the United States, in the wake of New York Times newspaper article earlier in the week that wondered about the financial feasibility of the US shale gas development.

" I assume EIA has actually done an exceptional job of keeping an eye on something that is a swiftly emerging adjustment in the [US energy] system," Richard Newell, the manager of DOE's Power Details Administration, informed Platts.

" It is something that a federal government agency could quickly not get on top of, as well as it belongs of the system that in a year points change a lot that you can be out of touch," he said. "So, to remain in touch you obtain accessibility to the most effective details, and also you include that into your expectation, and I think that is specifically what we have done."

Two tales in the New York Times on Sunday and Monday quoted interior EIA emails from authorities there who were cynical that US shale gas sources would measure up to the glowing production expectation from sector as well as the EIA.

The tales also led Agent Ed Markey, a Massachusetts Democrat as well as doubter of the debatable techniques made use of in accessing shale gas, to doubt whether the price quotes showed truth or a "speculative bubble hyped by the oil and also gas market." Markey asked for that Newell describe the methodology it makes use of to make estimates on shale gas manufacturing.

But Newell protected the work of his company, and emphasized that US gas production was raising.

"This isn't just understanding. Natural gas is being generated, it is being measured, as well as it is being produced from shale gas books," he stated.

The growth of hydraulic fracturing as well as horizontal drilling has caused huge boost in the quantity of natural gas created in the US over the previous a number of years. The new methods additionally resulted in independent quotes of gas gets virtually doubling in 2009, from 1,000 Tcf to 1,836 Tcf, with the boost influenced by shale gas activity. The NYMEX gas futures contract price additionally went down drastically in the past three years, from above $12/MMBtu in June 2008 to around $4.30/ MMBtu this week.

hedp na4 has its movie critics nevertheless, with many ecological groups and also state federal government's voicing problems over the concealed chemical products pumped into the ground by gas firms to obtain oil from shale.

Considering That the New York Times tales, experts as well as others within the natural gas market have actually also safeguarded quotes that natural gas production has raised and also will remain to enhance.