Harvard University professor Niall Ferguson, author of ‘The Ascent of Money,’ said he expects the dollar to rally after shale gas discoveries in North America.
“I am long U.S. dollar, which is somewhat a contrarian position,” he said today in Abu Dhabi. “The benefits of the shale gas type oil revolution are still being underestimated by most observers and I think there’s a lot more upside to come in the United States than most people anticipate.”
The U.S. is poised to become a net exporter of liquefied petroleum gases for the first year ever as shale-based energy production jumps, prompting new orders for specialized ships to haul propane and butane. The boom in natural gas and oil production helped the U.S. meet 84 percent of its energy needs in the first 10 months of last year, on pace to be the highest annual level since 1991, EIA data show.
“If you think about what the shale gas type oil story means for the current account it has to be positive,” Ferguson said later in an interview. “It has to be reducing it, so that’s another dollar positive force,” he said.
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