About that gas bubble . . .October 12, 2011
Yesterday, I posted a word of caution about a possible bubble in unconventional gas. I didn’t have any data to back it up, it was just a sense I was getting from all the proposals and news that cross my desk on a daily basis. Well, I may be close to some actual data. Today, I was reading a long interview with Stephan Singer, Global Policy Director for the World Wildlife Fund. The WWF is a big promoter of renewable energy, with a stated (and, in my opinion, delusional) goal of a 100% elimination of the use of fossil fuels by 2050. Singer sees that goal threatened by the sudden availability of trillions of cubic feet of unconventional gas. In the midst of that interview, Singer references “the McKinsey report,” which, among other things concluded “that by 2030, if all the gas investments taking place materialize, which are currently in the pipeline, we will have more than twice as much gas as even would be considered needed in a ‘business as usual’ scenario.”
Now, I have not read this study myself, so I can say neither whether Singer’s characterization is accurate nor whether the study itself is sound. I assume that he is referencing a study by McKinsey & Co., but I cannot find a recent natural gas study available on their website. If anyone knows what study Singer is speaking about and can direct me to a copy, I would be very grateful.