Sunday, April 11, 2010

Peak Oil: Will Natural Gas Smoothly Replace Petroleum?

This is a fascinating article posted at Seekingalpha:

SEEKING ALPHA: "BMO Capital Markets' Oil and Gas Analyst Mark Leggett says he doesn't see natural gas replacing oil in the near term. In this exclusive interview with The Energy Report, Mark says that the infrastructure isn't in place to allow natural gas to become a tangible replacement for oil any time soon."

'ML: It's interesting to look at the hypothesis of using natural gas. It is becoming very visible, and a lot of respected people in industry are pointing that out. However, when you look at the ramifications of building out infrastructure in places like Pennsylvania, where there are no pipelines or gas plants, it takes a while to build those up. Then more importantly, the infrastructure needed to supply transportation throughout the United States is significant and it will take a long time for that to be put in place. So that day may come, but I don't think that date is visible at this point.'"

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