He said his entire $ 2 billion investment in a Texas utility company may be wiped out unless
natural gas prices rise substantially.
It is because so little energy is being used, and because alternatives are ruled out ab initio (the model contains no nuclear power, and no technology for storing away carbon emissions from fossil fuels;
natural gas prices rise strongly and coal plants are retired well before they are clapped out) that the model ends up with such a high percentage of renewables; indeed given the premise it's slightly surprising it doesn't end up with even more.
And as
natural gas prices rise, keeping nuclear plants on - line will protect consumers and industries from future price shocks.
Eventually, coal production will rebound somewhat as overall U.S. electricity demand increases over time and as
natural gas prices rise.
Until carbon pricing is in place, or
natural gas prices rise significantly, owners of economically vulnerable nuclear plants will continue asking policymakers for financial assistance.
The analysis comes on the heels of widespread speculation that the reactors will be carefully mothballed by their builder and could eventually be revived by Southern Company or Duke, two neighboring electric utilities, when
natural gas prices rise in the future.
In its early days, when
natural gas prices rose and fell in lockstep with oil, investors questioned its business plan.
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.
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.
With oil and
natural gas prices rising rapidly and nuclear power stuck in political limbo, the world's appetite for coal is soaring.
Not exact matches
Our energy sector has been hurt partly by low
natural gas prices and the discount placed on Canadian oil compared to world benchmarks, but
gas and oil
prices have generally been flat or on the
rise.
Rising property taxes and increasing utility costs are the big ones, but it has entered into a
natural gas contract that caps future
gas prices at $ 4.50.
The company expects coal demand to
rise in the coming year, but relatively low
natural gas prices will continue to add downward
pricing pressure.
Rather, its problems are related to the
rise of fracking, which depressed the
natural -
gas prices that private - equity buyers had expected would climb and help the company boost revenue and service its debt.
A recovery in commodity
prices was due primarily to
rising prices for oil and
natural gas and was thus a strong positive for exporters of those commodities.
On the shale revolution, the report concedes that energy
prices for U.S. businesses might well
rise if Washington decides to lift an old prohibition to export
natural gas to countries who haven't signed a free trade agreement with the U.S. (which includes Japan and China, among America's best potential customers.)
In 2007, KKR and the other private equity firms were betting on
rising natural gas prices.
This suggests
natural gas prices could
rise as well.
Natural gas is still so cheap that solar has trouble competing with existing plants, but when it comes to new
gas plants, solar is getting within striking distance, especially if
gas prices rise more than forecasted.
From the mid 2000s, the
prices for commodities used to produce steel and generate energy — including iron ore, coal and
natural gas —
rose sharply.
Not only does this
rising production directly boost real GDP, but also the large drop in
natural gas prices has significantly improved the industrial competitiveness of U.S. - based businesses.
As the
price of oil
rises and supplies of petroleum become constricted, the popularity of — and demand for —
natural gas will more than likely
rise as well.
Energy goods and services
prices rose 0.2 % after their drop in April of 4.5 %; Gasoline
prices continued lower modestly, but other energy costs
rose markedly, especially
natural gas for household utilities, which was up 2.4 % (16.6 % y / y).
Energy company Royal Dutch Shell says first - quarter earnings
rose 67 percent, boosted by a rebound in oil
prices and growth in its
natural gas business.
Natural gas is used as the primary heating fuel in about half of U.S. households, and
prices can
rise rapidly when extreme weather comes.
Natural -
gas prices on Nymex ended lower after the EIA on Thursday reported the first weekly supply increase of the injection season — a time when inventories build ahead of the expected
rise in summer cooling demand.
With
natural gas supplies predicted to run down over the next 25 to 50 years1, N fertiliser
prices will continue to
rise, reflecting
rises in
gas prices.
The economy is bad,
gas prices are high, food
prices are
rising and many green families may be wondering how they can afford organics, costlier
natural items, and some of those green gadgets that cost more now and end up helping you save later.
Eventually the flood of
natural gas will come to a halt and
prices for electricity with once again
rise.
Russian oil companies have benefited greatly from
rising international oil
prices and the country has also succeeded in signing lucrative
natural gas energy supply deals with European countries.
U.S. coal eventually headed overseas While
natural gas prices are currently hovering around $ 2 per million British thermal units, EIA projects that
prices will gradually
rise to a long - term average of around $ 6 per million Btu.
Meanwhile,
natural gas prices would
rise only about 50 cents over what they otherwise would be, to about $ 5.50 rather than $ 5 per thousand cubic feet.
Two years ago the U.S. Department of Energy predicted a resurgence of coal - fired power plants because of the
rising price of oil and
natural gas.
And, even if those targets are met, greenhouse
gas pollution may remain:
Rising prices for
natural gas in the U.S. meant an uptick in coal burning in 2013 — and an attendant 2 percent
rise in CO2 from electricity production.
Crude oil and
natural gas prices have historically
risen and fallen in concert.
Rising natural -
gas and oil
prices have left energy - rich Wyoming in a financial position that state officials usually can only dream of — a $ 1.8 billion surplus projected for this year, and barely enough ways to spend the money in the sparsely populated state.
According to the federal Energy Information Administration,
natural -
gas prices are projected to
rise an average of 38 percent nationally this winter, compared with last winter.
While the share
prices certainly
rise and fall (as do all stocks), oil and
natural gas entities have proven themselves to be very secure.
If the
price of oil
rises, the share
price for an oil and
natural gas will go up, no matter where it is headquartered.
-- If
natural gas prices were to
rise from their depression - like lows, HAWK could experience a significant boost in demand for its services.
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.
Increasing our use of
natural gas increases our contribution to a
rising world
price of
natural gas, which benefits all
natural gas exporters alike, including Hugo.
He added that 2012 emissions cuts could turn out to be temporary — EIA projects energy - related carbon emissions to tick up 2.4 percent this year, driven mainly by coal, Lindstrom explained, since
natural gas prices have
risen recently.
Rising production, record end - of - winter storage inventories, and mild weather contributed to spot
natural gas prices nearing their lowest levels in a decade until
prices rebounded at most trading points to the high $ 2 / MMBtu range by the end of June.
The grid operator testified that «wholesale energy
prices and emissions will
rise when extreme weather results in
natural gas pipeline constraints — driving up the
price of
natural gas (and wholesale energy) and forcing New England to rely on oil - and coal - fired generation for multi-day (or multi-week) periods.»
In the Reference case, coal generation at existing coal plants is supported by a steady
rise in
natural gas prices beyond 2020, with annual average spot
prices exceeding $ 7.50 per million Btu by 2040.
Recently, with
natural gas prices declining and coal
prices rising, dispatching
natural gas generators in some parts of the country has become increasingly competitive with running coal generators.
However, the short - term flexibility to take immediate advantage of low
natural gas prices is limited in this sector, because many manufacturers that relied heavily on
natural gas as fuel or feedstock closed down or moved abroad in the late 1990s and early 2000s in the face of
rising natural gas prices.
Expanded generation from renewables,
rising natural gas prices, and static CPP targets in the post-2030 period in the CPP case allow existing coal - fired plants to operate at a higher utilization rate which
rises from a low of 60 % in 2024 to 71 % in 2040.
So as California was doubling its share of electricity from costly renewables, its retail electricity
prices rose in line with the rest of the nation as the cheaper
natural -
gas - generated electricity covered for the more expensive green energy.