Published on May 3, 2014

The International Energy Agency predicted that the energy boom will pave the way for the : golden age of gas. However, industry executives do not share similar views. Oil continues to be a prized possession, while gas has become a mere afterthought.

Abraxas Petroleum (AXAS) Corp. stated that majority of its proven reserves are oil and liquids. The industry prefers oil primarily because oil sells for three times as much as the same amount of natural gas.

Oil helps producers as well as shareholders make the best returns. Experts believe that natural gas will help the US economy transition from fossil fuels to clean energy.

US natural gas futures have dropped 72 per cent to 4.476 dollars as supply increased to record highs.   

Despite the harsh cold weather, fuel costs half as much as in Europe. Crude oil, however, continues to be at 100 dollars per barrel. The huge rise in US oil supplies has brought down domestic prices but it continues to be 7.6 per cent higher than the previous year.

US is heavily dependent on oil. Consumption is expected to reach 19 million barrels per day this year, more than the combined consumption of Europe and China. The increasing  output has reduced imports but has failed to limit the reliance on oil.

Natural gas needs to have more uses. The transition from fossil fuels to cleaner energy cannot rely on supply alone. Many power plants in the US have turned to using gas. However, US continues to get more electricity from coal.

The shale gas revolution has encouraged the chemical industry to invest over 100 billion dollars in expansion projects. The   Energy Department has given its approval to seven projects to export 9.3 billion cubic feet per day of natural gas in liquid form.

Despite being a clean source of energy, the production of natural  gas as a byproduct of oil drilling is causing more pollution.

Thus, while the industry may seem to be keen on establishing a sustainable economy, companies are busy exploiting oil fields of the country, making it evident as to where their interests lie.