For those who believe that hydraulic fracturing is the reason that overall energy prices have been dropping, they need to take a second look at the causes and effects of the price reductions. Natural gas prices have come down to $2MCF to the current $3.85MCF which is still lower than they were three years ago. What is really behind this drop in price is increased renewable energy supplies and use. It’s the old theory of supply and demand determining prices. When energy levels increase due to renewable energy supplies and the demand levels stay the same, the prices of energy will decrease.
It’s quite possible that as energy supplies, including alternative energy supplies increase, that jobs in these sectors will increase as well. The need for oil is actually on the decrease of need and production. It’s interesting that according to the state leading indexes as researched by the Federal Bank of Philadelphia, the report released on May 28, 2013 shows that forty five states will continue to show growth. Five states will not and they are Alaska, Louisiana, North Dakota, Wisconsin, and Wyoming. With the exception of Wisconsin, the others are all oil producing states.
The production and use of renewable energy supplies is on the rise. The cost of renewable energy such as solar and wind have decreased. Europe has embraced solar energy and is using less oil, coal, and natural gas while increasing renewable energy supplies. Spain and Germany lead Europe in their energy goals regarding solar energy.
Another example of good news about renewable energy supplies is due to what is happening across the globe. China leads the world in solar panel production. They have a glut in inventory which has brought the prices down considerably. The current estimate is that solar energy supplies and installation have decreased by ten percent. China now has one hundred gigawatts online and that is a great supply.
Greater improvements in technology have merged various energy forms. For instance, natural gas and solar energy are now working in tandem to avoid intermittent electricity periods. Also, the smart grids such as those that were started in Florida are now available to find problems in consistent energy flow before they become unmanageable. Programs have been put together in states where geothermal energy is available and have discovered ways that this form of energy can work well with solar techniques. Developing industrial nations are finding that alternative energy works better for them than oil, coal or natural gas because renewable energy does not have to be transported. The future is definitely with renewable energy.