Shale gas will save U.S. consumers billions, bank report says
Growing U.S. shale gas output means billions in cost savings for residential and industrial consumers, according to a report by TD Bank released Thursday.
Technological advances have unlocked enormous supplies of natural gas from rock formations across the United States, keeping the price suppressed at around $3.50 per 1,000 cubic feet. The same fuel, by contrast, fetches around $12 in Europe and $16 in Asia. The TD economists say the U.S. price would be in the $10 to $12 range if not for burgeoning production in places such as Texas and Pennsylvania.
“Lower prices have cut costs for businesses and consumers and dramatically shifted the economics of power generation,” Leslie Preston and James Marple write in the report. A growing switch from coal to natural gas in power generation will also have environmental benefits, since natural gas burns more cleanly and emits less carbon dioxide than coal, they added.
American residential consumers can expect to save around $75 billion in utility costs in 2013 — equivalent to about $650 per household — assuming prices average $3.75 over the next year.
Au Québec on est pauvre et on aime ça, le déclin tranquille…