Ryan Avent in The Economist’s “Free Exchange” argues that the most notable part of the latest World Energy Outlook report is the expected shifts in energy supply and demand. He notes that new techniques, including hydraulic fracturing or fracking, will make the U.S. an net exporter of energy within the next few decades, which will have large effects on energy trade. In the Hamilton Project discussion paper, “Modernizing Bonding Requirements for Natural Gas Producers,” UC Berkley’s Lucas Davis argues that fracking could provide significant benefits to the nation’s economy, but suggests this and other technological advances raise many environmental concerns. To ensure funds are available for clean-up when natural gas accidents occur, Davis discusses new approaches to bonding requirements for producers, including increasing federal minimum bond amounts and encouraging states to adopt similar minimum bond amounts for drilling on non-federal land.
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