Could the current price of natural gas kill coal ??

With natural gas prices at a low right now, one could start to wonder if natural gas will becomes a worthy competitor to coal as the primary source for electricity in the U.S.

The price of natural gas has fallen from $13 per million British thermal units to $4 per million btu in less than a year. Today, coal provides almost 50% of the U.S.’s electricity while natural gas provides 21%.

The price and amounts of natural gas in the U.S with the shale play in Haynesville (area in Louisiana that could become the world’s largest producing gas field) could give ‘dirty’ coal a run for its money. Coal is cheap and an entrenched old technology. Clean atural gas and technology improvemets will cause coal costs will dip even further. The growth in takeup for domestic, secure and clean natural gas is going to be explosive !

Posted: C. Keddy

Short URL: http://naturalgasforamerica.com/?p=434

Posted by admin on June 23rd, 2009. Filed under Natural Gas. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry