June 25, 2012
By Blaine Rollins, CFA, Managing Director, 361 Capital
The shale gas boom in the U.S. has led to a big drop in its carbon emissions, as power generators switch from coal to cheap gas. According to the International Energy Agency (IEA), U.S. energy-related emissions of carbon dioxide, the main greenhouse gas, fell by 450 million tonnes over the past five years – the largest drop among all countries surveyed. Fatih Birol, IEA chief economist, attributed the fall to improvements in fuel efficiency in the transport sector and a "major shift" from coal to gas in the power sector. "This is a success story based on a combination of policy and technology – policy driving greater efficiency and technology making shale gas production viable," Mr. Birol told the Financial Times.
Source: This was excerpted from Financial Times via 361 Capital's 361 Capital Weekly Research Briefing, May 28, 2012 publication, http://361capital.com.
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