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http://www.energyandcapital.com/articles/natural+gas-solar-wind/426

When the Gas is Gone, We'll be Rich!

..........But a lack of investment in gas fields, and high spot prices, are really the least of our troubles.

The big concern is that we’re past Peak Gas in North America, and there is little hope for increasing imports. Here’s why.

A Yawning Gap

Gas production in North America topped out in 2002, and has been declining ever since, at the rate of about 1.7% annually in the U.S.

And this depletion has been relentless, despite a tripling of producing gas wells since 1971. We’re drilling more than ever, production is still declining…and now gas drilling rigs have been making an exodus from Canada.

Current supply and demand forecasts indicate that a serious shortfall in natural gas supply is looming.

Like, to the tune of 11 trillion cubic feet (Tcf) per year by 2025, or about half of our current usage of 22 Tcf/year.

Demand for natural gas is rising steadily along with demand for electricity, but drilling can’t make up for depletion, let alone additional demand.

That makes imports our last resort, right?

Wrong.

Natural gas production is mostly a landlocked business. We only import 19% of the natural gas we use, and 86% of that comes by pipeline from Canada and Mexico…both of which are both past their peaks.

Overseas suppliers provide the remaining imports as liquefied natural gas, or “LNG.” But those imports are inherently limited by a number of factors, including supply, tanker availability, and the lack of liquefaction and regasification terminals, and none of those issues look like they will be resolved any time soon. I explain the manifold reasons for this in the full report.

In short, every year we’re needing more imports, but getting about the same amounts, and paying more for them.

The bottom line: When it comes to natural gas, we’re on our own.

And even though new drilling in the Gulf (and eventually in Alaska) will produce some additional gas, it won’t be nearly enough to change the basic production picture..............