Since the oil shocks of the 1970s, the US has been seeking energy independence. Now natural gas is seen as a possible solution. But at best it will probably only give Americans a breather while they look beyond hydrocarbons.
David Sanders/Arizona Daily Star/AP/File
Synfuel technology had been developed by oil-starved but coal-rich Germany. It was put on the back shelf during the postwar era of cheap gasoline and was now getting a fresh look. Synfuel processing was complex and expensive, but the oil era was ending, many analysts believed. Any alternative would be useful in the new energy war.
A few years later, while on a trip to Saudi Arabia, I heard oil industry specialists speaking with alarm about a coming bust. Those higher prices in the late 1970s had prompted an oil glut. In 1984, the bottom fell out. Synfuels and most alternative energies were packed away. From Texas to the North Sea to the Middle East, oil fields were shut down and workers were laid off.
Oil stayed relatively cheap until the first decade of this century, when it surged again as demand increased in China, India, and other developing economies. Once again, a warlike effort was urged to break foreign oil dependence – this time by developing alternatives such as solar, wind, and geothermal as well as reviving nuclear .
Now a curious thing is happening. The hydrocarbon supply chain is forking. The oil side is still costly and dependent on overseas sources. The natural gas side, which used to rise or fall in lock step, is emerging as the great hope of energy independence. As Alex Marks writes in a Monitor special report, natural gas has become so plentiful and cheap that it has fundamentally altered the energy security outlook for the United States.