Monday, April 29, 2013

Gas Generation Takes Beating, Falling 7.7% Because Coal Generation Jumps 8%

Gas is getting beat by coal in the electric generation market in 2013 and beat soundly.

Natural gas generation fell a sharp 7.7% in February 2013 compared to February 2012.

And the cause of gas's decline is rising coal generation.  Coal jumped 8% in the same period.

Coal and gas duke it out daily in power generation markets. and the price of gas has reached levels that insure gas will lose in 2013 a significant portion of the market share that it gained from coal during 2012, when gas was about $1.50 per thousand cubic feet than it is now.

Last year, coal provided 37% and gas 30% of US electricity.  This year coal may well supply 40% and gas just 25% of our power. One consequence of the shift back to coal from gas will be higher carbon dioxide emissions this year.

The US said "no" to gas and "yes" to coal in almost equal amounts through February 2013. It is an energy fact of life that some still resist.


  1. Concerned ScientistApril 29, 2013 at 10:58 AM

    I guess right around $4/mcf coal becomes cheaper than gas. As the old coal plants continue to shut down shouldn't we see a more permanent shift?

  2. As EPA cranks up the regulations, more coal plants will be shut down or converted to gas, regardless of how high gas prices go.