In the Commodities Corner of Marketwatch, journalist Myra P. Saefong has shown today that the strategy is working. Seeking to “cut back on exploration and postpone new projects is finally starting to show signs of success as demand for the commodity begins to improve,” which is good news for both the industry and for the general health of the energy markets.

I think natural gas will be a huge place of growth while we wait for solar, wind, and other alternative energy forms to gain a foothold in the global market. Until then, it’s certainly the more sustainable option, and is already used in millions of homes the world over.

At the same time, this shift in production should be a good thing over the long term, saving resources for when they are more urgently needed in the future. According to Ben Smith of First Enercast Financial, an information vendor catering to energy markets, ” Today, there are half the rigs searching for natural gas in the U.S. than there were last year,” a trend which is sure to continue until prices regain their old levels.

[image via Mountain Madman]

While certainly a boon to the local economy – according to the Economist: “They have brought a bonanza of jobs and wealth to the area and to the province. In 2008 the provincial government netted C$2.66 billion in sales of land and drilling rights, and a further C$1 billion in royalty payments.” - tapping into these new sources has proven disruptive, with many locals upset at the increased traffic, construction, and pollution brought about by the drilling.

Encana, the company with the most established drilling operation, has suffered setbacks to its infrastructure in the form of eco-terrorists attempting to shut down the project. The latest attack on July 4th of this year created a 500 meter fissure in one of the natural gas pipelines which was still in repair from an attack four days prior. The bomber who took credit for the attack wrote a letter to Encana asking them to cease drilling operations or suffer even more serious attacks. In response, Canadian authorities have beefed up security and patrols, and even went so far as to bring in counter-terrorist experts.

In my mind, natural gas provides a stable, clean alternative to fossil fuels, and should represent – even to locals affected by natural gas drilling – both an economic and environmental opportunity. While it’s true that there needs to be limits in place on how and where this gas can be accessed, I think it’s necessary that businesses take the lead on discussing their practices openly and honestly before anyone feels compelled to resort to potentially dangerous and destructive acts.

Companies have to recognize their impacts on communities, both positive and negative, and be committed to working with local residents to set address any doubts or issues that may arise in all cases, but especially when they’re reaping significant windfalls. It’s the intelligent and responsible approach and will ultimately benefit everyone involved.

[image via Sam Beebe/Ecotrust]

He begins by outlining the well-documented hazards of the coal power plant age: Ozone and particulates from coal plants cause widespread illnesses and disease. Acid rain emissions have destroyed the forests and polluted waterways. The industry’s strip mines have altered the landscape and coal which supplies 46% of the nation’s electric power, is the biggest contributor to our greenhouse gases.

Pointing to the inefficiencies in America’s antiquated coal plants – they “burn 20% more coal per megawatt hour than modern large coal units and are 60-75% less fuel efficient than high-efficiency gas plants” – Kennedy illustrates the necessity of this transition. This move would immediately lessen the amount of carbon released into the atmosphere, as the oldest of these coal plants “can be eliminated very quickly–in many instances literally overnight by substituting power from America’s existing and underutilized natural gas generation, which is abundant, cleaner and more affordable and accessible today than dirty coal.”

In terms of local economies, this substitution not only helps ensure that no jobs are lost, but in many instances, creates more opportunities both for workers and investors. Kennedy cites California’s Bright Source, a company that just won a massive contract to build a solar array in the Mojave Desert capable of supplying nearly 2.6 gigawatts annually, as an example of the huge potential of these untapped markets in smarter, cheaper renewables.

With more and more companies and investors looking to capitalize on the trajectory of green technology, we’re only witnessing the beginning of this transformation, a trend that will benefit the bottom line while saving our planet in the process.