tag:blogger.com,1999:blog-8861605.post8470729220028677571..comments2024-02-20T13:32:06.704-05:00Comments on Resource Insights: Patient contrarians: The natural gas market isn't what it seemsKurt Cobbhttp://www.blogger.com/profile/05330759091950742285noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-8861605.post-4394415028211865722013-05-07T14:33:14.440-04:002013-05-07T14:33:14.440-04:00Thanks Laurent and Gail for your comments and info...Thanks Laurent and Gail for your comments and information. As for Don Bates remaining question, I have talked to people about how easy it would be for utilities to switch back to coal. The answer I invariably get is, "it depends." It will be a company-by-company and plant-by-plant issue. So many things figure into such a decision: the price and availability of coal where the plant is built, the need for peaking power from natural gas fired plants, the regulatory limits for emissions and requirements for emissions controls, and on and on.<br /><br />One thing seems clear. Any decision to switch to coal will not be effected immediately. It will take time, which is why I think a train wreck and probably something worse is coming in the natural gas market.Kurt Cobbhttps://www.blogger.com/profile/05330759091950742285noreply@blogger.comtag:blogger.com,1999:blog-8861605.post-50898981950869734672013-05-07T09:27:41.806-04:002013-05-07T09:27:41.806-04:00Great post! You have a lot of good insights here. ...Great post! You have a lot of good insights here. <br /><br />It will be interesting to see how things really work out. Issues I see:<br /><br />1. Where will all the investment dollars come from to drill new wells, unless price is a lot higher? We have pretty much run through the sucker investment list.<br /><br />2. How much capping effect will coal price have on natural gas prices?<br /><br />3. What will the economy in general doing? If the economy in general is heading for deep recession, higher natural gas prices will be another force sending it in that direction.Gail Tverberghttp://ourfiniteworld.com/noreply@blogger.comtag:blogger.com,1999:blog-8861605.post-27917784025170786812013-05-07T04:31:33.386-04:002013-05-07T04:31:33.386-04:00In 2012, the U.S. used 25.5 trillion cubic feet of...In 2012, the U.S. used 25.5 trillion cubic feet of natural gas servus 22 trillion cubic feet in 2005.<br /><br />In 2012, natural gas use for electric power generation was 9.1 trillion cubic feet versus 5.8 trillion cubic in 2005.<br /><br /><br />EIA Natural Gas Consumption by End Use<br />http://www.eia.gov/dnav/ng/ng_cons_sum_dcu_nus_a.htmLaurentnoreply@blogger.comtag:blogger.com,1999:blog-8861605.post-6007324773521698112013-05-05T23:42:02.771-04:002013-05-05T23:42:02.771-04:00Two questions:
1) do you know how much US consumpt...Two questions:<br />1) do you know how much US consumption has increased since, say, 2005? We read about how much natural gas consumption has increased, at the expense of coal. How much of total US demand is going to the electricity market?<br />2) For those power plants that have switched from coal to NG, is that change readily reversible?<br /><br />The answers to these would have a big effect on what future prices might be.don bateshttps://www.blogger.com/profile/05799694410755093963noreply@blogger.com