Oil and gas have long been a foundational industry for the U.S., often dominating the lists of high revenue grossers. The country is now the largest producer and consumer of oil. But what does the future look like as internal and external forces reshape the energy game? Has the power of oil and gas fizzled? Derek Brower, the U.S. Energy Editor for the Financial Times, shares his insights based on a recent post, “Is the Party Finally Over for U.S. Oil and Gas?”
The discussion about oil and gas in the U.S. right now includes environmental, economic, and political implications. Brower said, “The broad theme is that environmentalists are winning court battles. Then there’s the questionable future of oil demand. With so much uncertainty, oil and gas investment now seem risky.”
Oil and gas investment hasn’t always been a sure thing, but with advancements, including shelling, it was certainly less volatile. As of late, the rollback of regulations and the construction of large-scale pipelines would seem to boost the industry, but now there is less confidence in returns. “Oil and gas won’t stop being produced or consumed. It’s a huge industry that won’t be taken down, but margins are the real problem. Extra costs for infrastructure mean margins are slipping,” Brower commented.
The real future of energy may come in the form of renewables—something the U.S. is dominating with its technological innovations.
“The U.S. will remain powerful in energy. There is a great opportunity in the U.S. to be dominant as a green energy producer. The future is bright,” Brower said.
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