Unconventional gas discoveries

I’ve been hearing a lot about unconventional gas discoveries in northern BC. Has anyone else seen news on this? I found three articles below.
Apparently the forecasts of Canadian natural gas production are all about to change dramatically. I’ve even heard people say BC could be the next Alberta. Could this undermine BC’s climate action goals I wonder? Hopefully they are planning for carbon capture and storage in the processing plants they will need to build.

• Technology spurs gas exploration in new places, Globe and Mail Update,
  May 7, 2008.
• B.C. land rights sale hits a record, Globe and Mail, May 23, 2008
• Shale discoveries lead natural gas revival, Calgary Herald, June 17, 2008.
• Shale Game: Do the Rockies Hold the Key to Energy Independence? Wall Street Journal, July 9, 2008

The future of energy

The following article from The Economist describes some of the opportunities that exist in the energy industry and suggests a boom in innovation that could be spurred by high prices and the scale of demand.

• The power and the glory, The Economist, Jun 19th 2008

The recent decline in US petroleum consumption

The graph below shows US petroleum consumption since 1995. Demand peaked in March 2007 and the decline since then is quite obvious – it is now back down to 2004 levels. Remember how everyone used to say demand is inelastic? It will be interesting to see how long the decline continues. Will it cause a drop in prices or will rest-of-world demand keep the price up, or will supply increases come online in time to prevent further decline?

Related news articles:

• Driving Less, Americans Finally React to Sting of Gas Prices, a Study Says, NY Times, June 19, 2008.
• Prices Curtail U.S. Gasoline Use, Wall Street Journal, June 20, 2008.
• Gas demand may have topped off, Bloomberg, June 19, 2008.
• With gas prices soaring, Americans driving less, Associated Press, June 19, 2008.
• Gas May Finally Cost Too Much, BusinessWeek, April 23, 2008.
• Short-Term Energy Outlook, US Energy Information Administration.