?????Shale's second, and perhaps greater attraction, is money. Of the $317 billion in oil and gas deals struck in 2011, $66 billion were shale-related, according to accounting firm Ernst & Young. The trend, they believe, will continue, and at the expense of investment in traditional renewables. Already, the shale surge has minted a half-dozen new billionaires, and is being likened to the Internet boom. But just as the latter went bust, so is the shale El Dorado at risk. Shale prices have tumbled from about $8 for a unit of gas in 2008 to roughly $2.50 now. With supply outstripping demand, low prices are crippling producers.
????President Obama claims that America has a nearly 100-year supply of natural gas, but his own Energy Information Administration contests his contention. A blight has already descended on the clean tech industry. Policymakers have to decide whether shale is enticing enough to give renewables a rebuff, or whether the two can coexist, just like what China, which has much greater shale deposits than us, is fostering.
????Sunil Sharan is the founder of Sierra Consulting, an energy consulting firm. He was formerly with General Electric (GE), where he served as the director of GE's Smart Grid Initiative from 2008 to 2009. He has worked in the energy industry for over 11 years, and can be reached at Email?.
