Coal Generation

This year’s natural gas power burn is shaping up as a record-breaker, mostly because gas consumption needs to rise sharply to offset increased production and the power sector is best able to ramp up its gas use. But what will it take, gas-price-wise, for utilities and independent power producers to increase their 2015 power burn by 2, 3 or even 4 Bcf/d this year? And which parts of the U.S. are likely to see the most dramatic coal-to-gas switching? Today we continue our look at this year’s power burn and its significance to Marcellus and other gas producers.

Several key factors point to a gradual increase in natural gas power burn over the next few years. More gas-fired units are coming online, and more coal-units are being retired.   But with gas prices trending higher this spring and summer than in the same periods last year, 2014 gas use by the electric sector may end up unchanged from 2013--unless this summer is a scorcher. The stronger pricing is good news for producers, of course, as is the very real need to replenish depleted gas stocks. Today, in the first episode of a new series on power burn demand for natural gas, we look back at 2013 and forward to prospects for 2014