05 Feb '12, 4pm

Cheap Natural Gas Reshaping Power Generation & Home Heating: Coal Will Take The Loss.

Cheap Natural Gas Reshaping Power Generation & Home Heating: Coal Will Take The Loss.

The latest US Energy Information Agency (EIA) report demonstrates natural gas prices continue to stay below historic levels. As shown in chart form (above), the remarkably low natural gas prices of early 2012 were bolstered by balmy winter weather and increased production. As to the climate factor, USEIA reports that "Population-weighted heating degree days since November 1, 2011 are down 12% nationally from the 30-year average." Fracking, of course, is a big part of what accounts for the increased gas production. More on that below. As long as this trend holds, utilities will see natural gas as the fuel of choice for electricity production. Coal is falling out of favor not only because of mountain top removal controls and public protest, coming mercury emission restrictions, coming PM2.5 particulate emission restrictions, and fly ash management issues. Price rules, even b...

Full article: http://www.treehugger.com/economics/cheap-natural-gas-kee...

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