Years of booming production have generated a huge surplus of natural gas in the United States. In a recent NPR interview, Wallace S. Wilson Fellow in Energy Studies Amy Myers Jaffe says the glut of natural gas is good news for the U.S. economy, consumers and even U.S. foreign policy. Natural gas producers, however, could very well become "victims of their drilling successes."
"One of the things I think we"re going to see over time, as the price of natural gas probably is going to stay low, [is] consolidation in the industry," Jaffe said. "So companies that borrowed and used leverage funds to do all this drilling activity are going to be under increasing pressure. And you"re going to see bigger players step in and buy small companies -- we"ve already seen that."
Jaffe also comments on how natural gas will change the way the United States views energy, as well as prospects for turning the surplus natural gas into a profitable export.