New EIA Report Shows Huge Growth in NatGas Electric Generation

We talk a fair bit about the price of natural gas, which drives how willing drillers are to drill for it. The higher the price, the more willing they are to drill. The converse is also true. If you can’t make a profit, why drill? One of the major users of natural gas, a source that is increasing its use, are electric generating plants. Price is driven by supply and demand. More demand is good–and using natural gas to power electric generating plants is one of the most efficient and environmentally friendly ways of producing electricity. So when we saw a new report being published (monthly) by our favorite government agency, U.S. Energy Information Administration (EIA) that covers the monthly inventory of electric plants–what’s powering them and how much electricity they’re producing–we perked up. In reviewing the stats, two things clearly stand out: using coal for electric generation is cratering, and using natural gas to power electric generating is rapidly rising…

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