Gas is even cheaper now at $2.27.
The problem they have is they can produce but nobody can use it and it
will take a long time to convert their trucks (the best usage) and to
build the supporting infrastructure.
There are technical problems with it as vehicle fuel but they are not
a real problem just an inconvenience that requires dedicated drivers.
There are buses in Sydney using natural gas.
The other major problem is that the credit is not available.

However that is only one problem and it will help but it cannot keep
up with depletion rates.
It is like bailing a sinking boat with a teacup.

http://www.businessspectator.com.au/bs.nsf/article/peak-oil-shale-gas-fracking-energy-nuclear-budget-pd20120229-rwr7c?opendocument&src=msp

Bazz, this is Alan Kohler's take on the subject and he does not agree with you.

There is not only shale gas, but shale oil too. But a whole lot of
petroleum in the US goes for plastics, fertilisers and of course
heating. Heating oil is basically diesel and if you live anywhere
in the northern half of the US, you'll need heating during the snow periods. If people start to use more gas to heat their homes, its
going to free up huge amounts of diesel for transport, instead of
home heating, as they burn it now.

I note that China's growth has slipped to 6% and they are actively sourcing energy/resources from countries not controlled by the Western Oligarchs.Our close alliance with the USA is hurting us.Perhaps we like India should play a more neutral role and not let US bases expand in our area.It is not in our interest to be a toady boy war mongerer to the USA/Great Britian.

Yabby, yes I read what he wrote a few days back.
In the last two or three weeks there has been a string of articles
in the US saying such as the US has become an oil exporter, that there
is a surplus of oil and many other comments, not as wild as that one
but all along the same theme.
Remember they are in the midst of an election over there.

However it is mainly smoke and mirrors because the contribution from
gas is really very minor in the total picture.
They still import 9 Mbd of oil !

Yabby, you might find this article interesting.

http://tinyurl.com/7tobzj6

I had a look at your URL, Bazz. Lots of people claim to be able
to predict the future, but in my experience they are invariably
wrong, because some game changer comes along and changes everything.

The ongoing oil pumping always interested me, where was it all coming
from? Then one day I read that there are something like 4.5 million
oil wells out there and you only have to squeeze an average of
20 barrels a day out of each one and you live to survive another day.

The BP well which blew up showed how much oil is still out there,
yet to be discovered. We've really only scratched the surface on
deep water drilling. Only high oil prices will give people a reason
to drill in the first place. Then we have huge areas of the globe
where nobody drills, due to political risk.

So unlike yourself, I claim no certainty about knowing the future.

At some point however, I do think that this thing called civilisation
as we know it, will collapse, when the wheels fall off for a host
of reasons. If that happens a bit sooner or a bit later, for me
is neither here nore there. Fact is people now think that they
are above nature and IMHO it will eventually bite them in the arse.
So be it. I don't worry about things that I cannot change