Can Shale Oil Help America’s Economy?

After sitting idle for two decades, there’s steam billowing from the top of the big old steel plant in Youngstown, Ohio.

“Years ago we couldn’t figure out how to get it out of there in an economical way, but somebody came up with a better mousetrap,” said oil analyst Phil Flynn of PFGBest.  “Instead of only getting maybe 10 percent of that oil and gas out of the market, now we get 75 to 80 to 90 percent of that oil and gas out” he said.

Flynn, who is very enthusiastic when talking about the possibilities of natural gas, said this can change everything, including foreign policy. “We’re the Saudi Arabia of natural gas. This single-handedly can change the US economy” he said.

The shale oil industry seems to have many heading toward Ohio with dollar signs in their eyes. On its website, the Ohio Department of Natural Resources posted this statement: “In the spring of 2010, the Division started receiving a number of calls from landowners who were being approached by land persons seeking to lease the Marcellus Shale and subsequently, the Utica Shale beneath their property for oil and natural gas exploration. We expect the permitting and drilling to the Marcellus Shale and Utica Shale to increase but at a gradual pace.”

It’s too soon to say business is booming, but Tom Humphries, from the Youngstown Warren regional chamber of commerce, estimates more than 400,000 jobs could be created in the area from the shale oil industry.

Still, for now shale oil is tightly gripped in a tug of war with environmental concerns versus jobs and a domestic fuel source.


Source: Fox News

Image: Scientific American