The prices of natural gas in the United States have come down drastically, due to increased domestic production derived from technological advances, such as hydraulic fracking. For this reason, as informed by Drew Johnson, from the Taxpayers Protection Alliance in The Wall Street Journal, it seemed odd that, in early January, a tanker docked in Boston Harbor carrying natural gas from Siberia to heat New England homes.
As a consequence of those technological advances, in 2017, natural gas provided 32 percent of the electricity generated in the United States, from 22 percent in 2007, overtaking coal which accounted for 30 percent of electricity generation in the same year, down from 49 percent a decade earlier. Nuclear energy comes third, generating 20 percent of electricity in 2017, while renewable sources, such as wind and solar, accounted for 8 percent, up from 1 percent in 2007.
Additionally, the United States this year will become a net exporter of natural gas, which was not seen in almost six decades. Mexico and Canada are the main purchasers of US natural gas, with Mexico in the first place importing 4 million cubic feet per day, almost two thirds of US exports, which are expected to grow to 6 million cubic feet in 2020.
How then can it be that New England is importing natural gas from Russia, despite the fact that it neighbors the Marcellus Formation, which stretches across Pennsylvania and West Virginia, into Ohio and upstate New York and contains the largest US source of natural gas. The explanation is because several states are restricting the construction of gas powered plants, to promote renewable sources of energy. Also, there is strong environmental opposition against the construction of a pipeline to bring natural gas from the Marcellus Formation into New England.
*International analyst and consultant, former Director ECLAC Washington Commentator on economic and financial issues for CNN en Español TV and radio, UNIVISION, TELEMUNDO and other media.
