Daniel Yergin had covered a lot of territory when he arrived at the US Chamber of Commerce on Feb. 16. The appearance, sponsored by the Chamber's Institute for 21st Century Energy, ostensibly was to help the IHS Cambridge Energy Research Associates chairman promote his latest book, "The Quest." But Yergin quickly began to describe what he had heard as he visited 27 cities in 11 US states.
He said people wanted to discuss shale gas issues, the Obama administration's Keystone XL pipeline stance, Iran's threats to close the Strait of Hormuz, gasoline and crude oil prices, and growing recognition that shale gas and tight oil resources have changed the US energy outlook.
"There was also a focus on the job development aspects of energy that had not been there earlier," he added.
Yergin noted that a study by another IHS division, Global Insight, found the US shale gas potential has created about 600,000 jobs, not including positions resulting from gas consuming companies having to spend less for energy.
"When you look at shale gas's economic impact, it's striking how far the economic chain reaches to industries which create jobs and generate revenue that stays in this country," he said.
In his Jan. 24 State of the Union speech, US President Barack Obama referred to jobs that would be created with full development of US gas resources. It reflected a strong awareness across government that the issue matters a lot in an election year, Yergin told OGJ following his remarks. "Nobody wants to be on the wrong side of the jobs issues in 2012," he said.
Three main questions
The three main global energy questions remain whether supplies will be abundant or scarce, research and development support will be consistent or sporadic, and energy development can be balanced with environmental concerns, Yergin said in his address.
He's reasonably optimistic, he continued. "There are risks and challenges, yet energy has been used for more than two centuries to address economic issues," he said.
Yergin, who will be at IHS CERA Week March 5-9 in Houston, also expressed confidence that the power of innovation will make this continue. "I see no reason that the innovative spirit that has got us this far is going to cease, and there will be a lot more people involved," he said.
Domestically, he suggested that energy permits be considered promptly so that it's less like the movie "Groundhog Day" as regulators and applicants repeat the same process, and that permits be approved for the Keystone XL pipeline, which would bring crude equal to about a third of Iran's total oil exports to the US.
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