Others have noted
the falling price of natural gas as a reason not to pursue natural gas exploration.
But several factors have changed grid economics, among
them the falling price of both natural gas and renewable energy (fuels that are often used in microgrids), environmental rules and declining use of electricity in the U.S.
Not exact matches
Its coal volumes have been
falling for several years, and the combination
of tougher environmental regulations and, in all probability, continued low
natural -
gas prices make it likely that the decline will persist.
Falling within his portfolio are the company's Canadian operations, including the Athabasca oilsands project and its growing interests in liquefied
natural gas (LNG), including a proposed export terminal in Kitimat, B.C., with a rumoured
price tag
of more than $ 12 billion.
The gold and copper miner, which also drills for oil and
gas, has seen its bottom line dry up as the
price of each
of those
natural resources has
fallen sharply recently.
The first was that
natural gas prices also
fell hard in 2012, hitting a 21st - century low
of around $ 2 per thousand cubic feet (MCF) last June.
The low
natural gas prices caused coal's share
of the power grid to
fall from 42 % in 2011 to 37 % in 2012.
We have contracted nearly 50 %
of our
natural gas and electricity usage through the
fall and the deregulated markets in which we operate at
prices favorable to calendar 2011.
This is one
of the main factors why the
price of natural gas has
fallen and remained relatively low.
A boom in
natural gas drilling in the U.S. has caused
prices of that commodity to
fall precipitously in recent years.
And as we have moved through 2009 the downward trend in
gas prices has continued accelerating in recent weeks to leave
prices hovering around the $ 2.60 mark at today's close — that's a massive 80 %
fall in the
price of natural gas since July 2008 and it's lowest
price in since March 2002!
I think sooner or later this
price divergence will have to close, either by
natural gas prices rising, oil
prices falling or a combination
of the two.
FitzPatrick has been hurt by Central New York's low wholesale power
prices, which have
fallen along with the
price of natural gas, a common fuel for power plants.
«In electric power,» Fratus says, «the
price of natural gas is the big driver,» and since
fall 2005 the wholesale
price of natural gas — though its still high in historical terms — has
fallen significantly.
With coal
prices falling and
natural gas prices rising, the EIA says coal's share
of U.S. power generation in the first four months
of 2013 averaged 39.5 percent, compared with 35.4 percent in the same period last year.
The company claims its technology can produce steam at a cost
of $ 3 per million BTUs, based on U.S. National Renewable Laboratory calculations;
natural gas currently costs some $ 4 per million BTUs, though that
price may continue to
fall as
natural gas freed up by fracking floods the market.
At the same time,
falling natural gas prices — combined with warm temperatures in much
of the country — will mean big savings on heating bills.
When oil
prices fall, it can rely on strong amounts
of natural gas, its transporting division, and its chemical division to provide the profits to continue the dividend growth.
Another notable finding is the influence
of a big switch from coal to
natural gas for electricity generation, as
gas prices fell nearly 50 percent while coal
prices rose 6.8 percent relative to 2008.
Ethanol makers experienced improved financial performance because
of changes out
of their control - as in the case
of natural gas prices falling drastically in response to increased fracking for
natural gas production - but lost money because
of increased corn
prices caused by escalating Chinese grain demand.
A decade or two into the future, electricity generated through solar power is projected to
fall to half the
price of that from coal or
natural gas.
Cheap
natural gas, stagnant power demand, and power
prices that have
fallen significantly since 2008 have jeopardized the economics
of about two - thirds
of the nation's 100 - GW nuclear capacity, according to a working paper from the Massachusetts Institute
of Technology (MIT) Center for Energy and Environmental Policy Research.
However, mild weather during the winter
of 2011/2012 combined with
falling natural gas prices dampened demand for coal - fired electricity.
There is evidence that the Midwest is steadily decarbonizing its electricity generation through a combination
of new state - level policies (for example, energy efficiency and renewable energy standards) and will continue to do so in response to low
natural gas prices,
falling prices for renewable electricity (for example, wind and solar), greater market demand for lower - carbon energy from consumers, and new EPA regulations governing new power plants.
The
fall in oil - indexed
natural gas prices, continued growth in renewables, the impact
of EU air quality directives, and the introduction
of a carbon
price floor in the UK have all contributed to coal generation retreating in Europe.
Carbon
prices fell in early October, along with the
price of oil and
natural gas, but not nearly as far as stocks.
The difference has now widened enormously with the advent
of $ 1.70
natural gas, $ 30 oil, and
falling coal
prices.
During the 1990s and 2000s, the generation costs for plants fueled by
natural gas fell dramatically as a result
of lower
natural gas fuel
prices and the increased use
of combined cycle technology for power generation.
In the last few years it has made even less given the rapid
fall of oil, coal, and
natural gas prices, which have made «green energy» even less economically competitive with fossil fuels than it already was.
Coal producers say they are scaling back operations and laying off thousands
of workers due to fierce competition from
natural gas,
falling coal
prices and tougher power plant regulations.
The trend
of decreasing coal generation can be attributed to both
falling natural gas prices and stagnant demand for electricity, but it can also be partially attributed to the increasing role
of solar and wind generation: March 2016 set records for both the highest amount
of monthly wind generation ever measured and the highest amount
of monthly utility - scale solar generation ever measured.
A recent report from the Institute for Policy Integrity shows that the rapidly
falling cost
of renewable energy technologies (wind and solar, but not only wind and solar), coupled with the stubbornly low
price of natural gas, mean that CPP compliance is likely to be cheaper than anyone projected.
Skeptical Science notes that when the coal externalities
of the study are included in coal's
price, it increases the levalized costs to approximately 28 cents per kWh, which is more than the 2009 U.S. Energy Information Administration cost
of hydroelectric, wind (onshore and offshore), geothermal, biomass, nuclear,
natural gas, and solar photovoltaics, and is on par with solar thermal, although the costs
of solar thermal are
falling.
Heading into the 2013 spring shoulder season (between winter and summer), when demand for electricity typically
falls, higher
prices for
natural gas reduced the fuel's share
of total generation below the record levels
of last April.
Natural gas generation
fell further than coal despite a net addition
of 5.9 GW
of new
gas generation capacity, due to higher
gas prices earlier in the year.
As a result, long - term forecasts — the ones that help determine the
price of oil or
natural gas futures, the ones that determine how much road salt your town buys this
fall — are looking a bit like guesswork.
Natural gas fired plants are much less expensive to build and the
price of gas may
fall even more.
As the
price of natural gas has
fallen, utilities are dropping coal.
In contrast to wind - generated electricity, where costs are
falling, the
price of natural gas is on its way up.
As costs for those alternative sources
of power have
fallen, renewable power producers are now able to sell electricity into certain markets — depending on factors such as transmission availability and weather — at a
price that is competitive or in some cases lower than
natural gas - fired generation.