Coal declines as fuel for power generation, natural gas usage surges

The latest information from the US Energy Information Administration shows that total electricity production during the past summer rose by just 6% over the past decade. However, during this same period, electricity generation by natural gas surged by 61%. Power generation from coal fell 17% during this time. Clearly, natural gas is gaining market share in power gen.

For the first time ever, the EIA says that generation from natural gas and coal are roughly equal. These two remain the two largest fuels for generating electricity. Nuclear, in third place, remains flat since no new nukes have been built in the US since the 1970s. Hydroelectric power increased by 6% during this time, and renewable power – mostly wind generation – grew by 7%.

Although the EIA report doesn’t say this, it would seem cheap and readily available natural gas from the nation’s shale plays is helping end coal’s dominance as the fuel of choice for power generation. Although a fossil fuel, natural gas burns much cleaner than coal and produces fewer emissions. Old coal-fired power plants still in operation have been shown to cause acid rain and other forms of pollution and environmental hazards and have been targeted by the Environmental Protection Administration for shutdown. Many have been replaced by new facilities that use natural gas and renewable energy as the fuels of choice.

Horizontal drilling techniques and hydraulic fracturing technology have been utilized by North American producers to make shale gas economic. As a result, current natural gas consumption in the US has soared to more than 24 trillion cubic feet in recent years.

Related Articles

Corlena Oil II to sell horizontal Texas Panhandle properties

04/18/2014 Corlena Oil Company II LLC has retained E-Spectrum Advisors LLC to sell its properties targeting the Cleveland, Granite Wash, and Douglas play in Hemphill and Ochiltree counties, Texas.

Athlon Energy prices $650 million of senior notes

04/17/2014 Athlon Energy Inc. has priced $650 million of 6.00% senior unsecured notes by Athlon Holdings LP and its co-issuer and wholly owned subsidiary, Athlon Finance Corp. The company expects to close the...

Athlon Energy begins public offering

04/17/2014 Athlon Energy Inc. has begun an underwritten public offering of 11 million shares of common stock pursuant to a registration statement on Form S-1 filed previously with the US Securities and Exchan...

Stabilis Energy to purchase Encana’s domestic LNG business

04/15/2014

Stabilis Energy has signed a definitive agreement to purchase substantially all of the US-based assets of Encana Natural Gas Inc., a subsidiary of Encana Corp.

American Energy Partners hires Launer as senior VP

04/15/2014

American Energy Partners LP has hired Curt Launer as its senior vice president of capital formation.

 

More Oil & Gas Financial Articles

Corlena Oil II to sell horizontal Texas Panhandle properties

Fri, Apr 18, 2014

Corlena Oil Company II LLC has retained E-Spectrum Advisors LLC to sell its properties targeting the Cleveland, Granite Wash, and Douglas play in Hemphill and Ochiltree counties, Texas.

Athlon Energy prices $650 million of senior notes

Thu, Apr 17, 2014

Athlon Energy Inc. has priced $650 million of 6.00% senior unsecured notes by Athlon Holdings LP and its co-issuer and wholly owned subsidiary, Athlon Finance Corp. The company expects to close the sale of the notes on May 1.

Athlon Energy begins public offering

Thu, Apr 17, 2014

Athlon Energy Inc. has begun an underwritten public offering of 11 million shares of common stock pursuant to a registration statement on Form S-1 filed previously with the US Securities and Exchange Commission.

Stabilis Energy to purchase Encana’s domestic LNG business

Tue, Apr 15, 2014

Stabilis Energy has signed a definitive agreement to purchase substantially all of the US-based assets of Encana Natural Gas Inc., a subsidiary of Encana Corp.

American Energy Partners hires Launer as senior VP

Tue, Apr 15, 2014

American Energy Partners LP has hired Curt Launer as its senior vice president of capital formation.

 

Most Popular

Oil & Gas Jobs

Search More Job Listings >>
Subscribe to OGFJ