Natural Gas: A Window of Opportunity
A window of opportunity has opened for the private participant in natural gas drilling, particularly on-shore USA. The major energy companies have recently shifted their interests overseas, allowing smaller energy companies to acquire prime leases in the heart of America’s gas producing areas. Domestic oil production is at a 31 year low and declining rapidly. Drilling activity is at a 50 year low and has recently rebounded due to increasing natural gas prices. For environmental reasons, the governments of the USA, some states, and Mexico have mandated increased usage of natural gas. The major automobile manufacturers have begun making compressed natural gas automobiles. Natural gas autos are also more economical and safer than gasoline autos.
Congress recently enhanced tax incentives to stimulate participation in drilling, especially for natural gas. Government and industry leaders are predicting increases in natural gas prices. Oil imports have recently exceeded 60% of USA consumption. (Imports were about 30% when OPEC caused the gas lines of the 1970′s.) Since banks no longer provide drilling funds, individuals are finding opportunities in the petroleum industry that previously were unavailable to them.