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An Auction of the Leases to Drill for Natural Gas

Question 300

Multiple Choice

An auction of the leases to drill for natural gas on about 55,000 acres on the Roan Plateau in western Colorado in August 2008 generated nearly $114 million, a record for onshore energy lease sales in the lower 48 states. Is natural gas a renewable or non-renewable resource? Why?


A) Renewable, because the resource can be recycled
B) Non-renewable, because the used resource cannot be reused
C) Non-renewable, because the value of marginal product for natural gas is diminishing
D) Renewable, because oil, natural gas, and coal are traded in global community markets

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