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Natural Gas is Killing Coal

There’s no denying that natural gas is revolutionizing our energy economy, but few believed it could deal such a swift death blow to coal, the commodity that brought us into the Industrial Revolution and has been our backbone ever since. But the signs are irrefutable. Here’s what you need to know. A historic battle Coal and natural gas have been going at it for a while. Traditionally, these were actually complementary energy sources. As a cheaper fuel that was more difficult to manage, coal-fired generation plants were the “slow burners” that kept our energy capacity steady throughout the day. Relatively expensive and more malleable natural gas-fired power plants served as the “pinch hitters” that powered up during peak hours when we needed that extra bit of juice. Today, things look a bit different. Natural gas and coal are no longer complements: natural gas has become a substitute for coal. […]

Posted On : Published By : Tom Whipple
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Big US Shale Field Marcellus Faces Output Drop Due To Low Gas Prices

May 28 (Reuters) – Natural gas production in the Marcellus shale, which has grown over the past decade from next to nothing to the source of about a fifth of U.S. output, may decline for the first time if prices in the basin remain low for much longer, according to federal government data. Such a reduction may be worrisome since the United States is counting on the Marcellus to continue producing vast amounts of cheap gas needed to meet growing demand from industrial customers and power generators, and to enable the country to transition into a net gas exporter by 2017. The U.S. Energy Information Administration says production in the fast-growing field in Pennsylvania and West Virginia is set to remain flat for the next few years before beginning a very slow decline primarily because of depressed gas prices. Recent data supports signs of a slowdown. The number of […]

Posted On : Published By : Tom Whipple
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Bill is wrong way to speed gas pipeline approvals, House panel told

WASHINGTON, DC, May 27 A bill that would give the US Department of the Interior authority to approve natural gas pipelines crossing National Parks Service land is unnecessary and unwanted, a US Bureau of Land Management official told a House Natural Resources subcommittee. “Most of the authorizations of HR 2295 are already within the scope of existing [Interior] authorities, and consistent with current priorities and activities,” Timothy Spisak, BLM’s senior advisor for energy, minerals, and realty management, said during the Energy and Minerals Subcommittee’s May 20 hearing. “Additionally, the department strongly opposes the bill’s provisions that would authorize the secretary to issue natural gas pipeline rights of way on NPS lands,” Tpisak said. The bill’s sponsors, Reps. Tom McArthur (R-NJ) and Cedric Richmond (D-La.), said their measure, the National Energy Security Corridors Act, is necessary to reduce federal bureaucratic roadblocks. “All along the East Coast, families are paying higher […]

Posted On : Published By : Tom Whipple
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Net imports of natural gas fall to lowest level since 1987

U.S. Energy Information Administration, based on U.S. Department of Energy Office of Fossil Energy U.S. net imports of natural gas decreased 9% in 2014, continuing an eight-year decline. As U.S. dry natural gas production has reached record highs, lower domestic prices have helped to displace natural gas imports. Net natural gas imports (imports minus exports) totaled 1,171 billion cubic feet (Bcf) in 2014, the lowest level since 1987. Imports by pipeline from Canada account for nearly 98% of all U.S. natural gas imports, and were the main driver of the decrease in total imports. Net imports from Canada represented 7% of total U.S. natural gas consumption in 2014, down from 11% in 2009. U.S. natural gas exports also decreased in 2014, but at a slower rate than the decrease in imports, and were still 9% above the previous five-year average. Natural gas exports to Mexico, which account for nearly […]

Posted On : Published By : Tom Whipple
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Duke To Build Natural Gas Power Plant, Retire Coal Plant

Duke said the new 650-megawatt plant will allow it to capitalize on low natural gas prices and cut its carbon dioxide emissions by about 60%. The plant would also be about 35% cheaper to operate than the 376-megawatt coal plant, based on current natural gas prices. Duke said the key parts of the plan, which also includes building a $320 million transmission substation in South Carolina, should be completed by the end of 2019. Charlotte, N.C.-based Duke operates utilities that serve more than seven million customers in the Carolinas, Florida, Indiana, Ohio and Kentucky. Duke in February agreed to settle charges that it violated the federal Clean Water Act by spilling coal ash into the Dan River in North Carolina last year, and said it would pay $102.2 million in penalties and restitution. The deal with federal investigators includes a five-year probationary period with a court-appointed monitor to ensure […]

Posted On : Published By : Tom Whipple
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New York fracking ban closer to law

State report from New York finds uncertainty surrounding hydraulic fracturing and may pave the way to making the governor’s ban formal law. File Photo by UPI/Kevin Dietsch. ALBANY, N.Y., May 14 (UPI) — Parts of the Marcellus shale natural gas play in New York may be off limits to hydraulic fracturing because of potential adverse risks, a state review found. New York Gov. Andrew Cuomo banned the use of hydraulic fracturing , or fracking, as a means of extracting natural gas after a years-long study by environmental and health officials. His December move triggered a review from the state Department of Environmental Conservation, which found "significant uncertainty remains" regarding the risks to public health and the environment that would result from fracking in the state. Interstate movements on fracking have been fluid since a moratorium was first introduced in 2008. A federal report finds that, while the amount of […]

Posted On : Published By : Tom Whipple
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Power generation from coal and natural gas expected to temporarily converge this spring

Republished May 14, 2015, 2:00 p.m. to correct an error in the graph EIA’s most recent Short-Term Energy Outlook forecasts that the amount of electricity generation fueled by natural gas in April and May will total just 3.5% less than the projected amount of coal-fired generation. This convergence has occurred only once before, in April 2012, when natural gas fueled just 1.5% less generation than coal. Power generation from the two fuels is expected to rise at similar rates over the next couple months, and then diverge again later in the summer as demand rises and coal unit capacity utilization continues to rise. Natural gas-fired generation has been rising over the past few months, as the cost of natural gas has fallen to levels not seen since 2012 . These low fuel costs have made natural gas combined-cycle generating units in some areas of the country cheaper to operate […]

Posted On : Published By : Tom Whipple
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New York environmental report calls for more fracking restrictions

New York has released its long-awaited report on high-volume hydraulic fracturing, which appears to cast doubt on whether the state will ever give a green light to the drilling completion practice, which essentially has been prohibited since 2008. The Department of Environmental Conservation released Wednesday the final supplemental generic environmental impact statement on fracking "that identifies and examines continued major uncertainties about potential significant adverse health and environmental impacts associated with the activity," according to a statement. The DEC will issue its formal findings statement after a required 10-day period in accordance with the state’s Environmental Quality Review Act. In a statement, DEC Commissioner Joe Martens said he would rely on the conclusions of the FSGEIS when he issues his findings statement. New York has had a de facto moratorium on fracking since 2008 while it first began to develop rules and regulations to govern the practice, which has […]

Posted On : Published By : Tom Whipple
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Natural gas generation poised to nearly equal coal in April, May: US EIA

Generating power with natural gas will come close to equaling generation from coal in April and May, the US Energy Information Administration predicts in its May Short-Term Energy Outlook report, released Tuesday. Coal and gas generation are expected to make up 31.7% and 30.7%, respectively, of all generation in the US in April, EIA said. For May, EIA predicts coal to make up 33% of all generation and gas to account for 31.6%. Recent low gas prices have significantly increased the use of the fossil fuel rather than coal for generation, the EIA said, with utility switching in April and May resulting in the closest convergence in generation shares between the two fuels since April 2012, when gas prices neared record lows. Coal consumption in the electric power sector will fall 6% in 2015, making up 35.8% of all generation, the EIA said. The use of gas-fired generation is […]

Posted On : Published By : Tom Whipple
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Study shows proposed Pennsylvania gas severance tax would be costly

HOUSTON, May 7 A proposed natural gas severance tax in Pennsylvania would have negative economic consecutives for the state, according to a Natural Resource Economics Inc. study released May 7 by the Associated Petroleum Industries of Pennsylvania (API-PA). “Higher energy taxes could put a damper on energy activity, and the commonwealth could be worse off with a new severance tax,” said Stephanie Wissman, API-PA executive director. “Natural gas development supports hundreds of thousands of jobs in Pennsylvania, contributes $34.7 billion annually to the state economy.” The report, “The Economic Impacts of the Proposed Natural Gas Severance Tax in Pennsylvania,” analyzed the impact of Gov. Tom Wolf’s proposal to implement an additional gas severance tax. Proposals include adding 5% on the gross market value of production plus a fixed fee of 4.7¢/Mcf produced and establishing an artificial floor of $2.97/Mcf regardless of the actual gas price ( OGJ Online, Mar. […]

Posted On : Published By : Tom Whipple