Coal, Gas Shares of Electricity Equal for 1st Time
From the EIA website today -- "Recently published electric power data show that, for the first time since EIA began collecting the data, generation from natural gas-fired plants is virtually equal to generation from coal-fired plants, with each fuel providing 32% of total generation (see chart above). In April 2012, preliminary data show net electric generation from natural gas was 95.9 million megawatthours, only slightly below generation from coal, at 96.0 million megawatthours."
See related CD post here.
11 Comments:
"In April 2012, preliminary data show net electric generation from natural gas was 95.9 million megawatthours, only slightly below generation from coal, at 96.0 million megawatthours."
Interesting to note that April was the inflection point(bottom) for natural gas prices.
what event in 2011 backhanded what looks like the reciprocating cycle of production?
Was last years summer not a very hot summer? There was no spike in production for the summer of 2011, where as all other years have a spike in the hot season. Also, it was not a cold winter this past season so I understand the lack of a winter spike this year.
Just a perfect storm to allow such a reduction in electricity production??
Was last years summer not a very hot summer?
No.
There was no spike in production for the summer of 2011, where as all other years have a spike in the hot season.
I believe that electricity went up during the summer months in 2011.
Also, it was not a cold winter this past season so I understand the lack of a winter spike this year.
Just a perfect storm to allow such a reduction in electricity production??
The real economy is still very weak and shale wells are still producing at a loss. With shale drilling falling supply will go down again and prices have to rise. Sadly for the optimists the producers still need a price above $7.50 per Mcf to break even so you could see a double before serious activity picks up again.
Obama's war on coal is setting up the poor rate payer for some nasty bills when natural gas prices go back up. Of course the Sierra Clubbers always get what they want from the Democrats.
Buddy-
If I may nitpick a little, I may just add "tentative inflection point" to your sentence. I mean, I agree that it likely is the bottom, but its hard to tell from just two months of data.
How can we blame Obama for this??
What are we missing??
jon states:
"Buddy-
If I may nitpick a little, I may just add "tentative inflection point" to your sentence. I mean, I agree that it likely is the bottom, but its hard to tell from just two months of data."
jon,
Here is a chart of weekly natural gas prices that is more current. Look at the bottom and to me it does look like a major move,
Besides, when one is an economics pundit, rather than a real economist, then you go big in declartions. Thus, "inflection point" :>)
Obama blames Bush for everything...this is Obama's first job you know.
Note that the conversion to NG has not been costly. Given the monthly demand for electricity, the capacity provided by renewables would have to grow by a factor of six to replace coal. Has anybody costed that effort? I'll betcha it's pricey...
Given the monthly demand for electricity, the capacity provided by renewables would have to grow by a factor of six to replace coal. Has anybody costed that effort? I'll betcha it's pricey...
Well, the IEA in June released a statement that global investment in green energy needs to grow by an additional $36 trillion. Considering the world GDP is $63 trillion, I think that answer speaks for itself.
Looking around the web, one can conclude the true cost of generating electricity from wind farms is still unknown, despite the claims of advocates that it is comparable to coal-generated electricity. It appears that the principal motive to build wind capacity is preferential tax treatment.
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