Breitling Oil and Gas Morning Podcast #135 August 20th, 2012

This week the National Petroleum Council handed Energy Secretary Steven Chu a study of transportation fuels that found the internal combustion engine would remain king of the road for at least the next four decades. Fuel economy will improve, perhaps dramatically. Greenhouse gas emissions will drop per vehicle, though not overall as many more cars and trucks take to the roads. Biofuels, hybrid vehicles with batteries and fuel cell cars using hydrogen are good to have, but they’ll remain subordinate to gasoline and diesel.
These are good times in the U.S. oil patch. Hydraulic fracturing and horizontal drilling, combined with information technology advances, have led to renewed abundance of natural gas and a remarkable surge in oil production. Refiners are surviving a decline in domestic demand by exporting products to Latin America and Europe. The availability of cheap natural gas has revived the petrochemicals business and is bringing billions of dollars in new manufacturing investments to the Gulf Coast.

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