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Karl W Miller
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NEAH Energy
  • Coal and Nuclear Continue to Dominate U.S. Power Generation 0 comments
    Jul 22, 2011 1:40 PM | about stocks: CHK, DVN, EOG, RRC, SD, SWN, HK, BHP, KMI, OXY, WMB, COP, MRO, BP, XOM, CVX

    Data from Electric Power Monthly
    Report Released: July 20, 2011

    We have modeled virtually every natural gas power plant built in the U.S. during the past ten (10) years. Natural Gas has not made a dent in the overall Electricity Generation mix in the United States, despite the construction of over 250,000 MW of new natural gas fueled generators.

    We do not see Natural Gas going beyond 22-25% of U.S. Electricity Generation in the next 15-20 years, as Nuclear and Coal plants will continue to dominate "Baseload Generation" while renewable energy will fill the gaps. Natural Gas will continue to be a "peaking fuel" and seasonal topping fuel in extreme heat/cold weather conditions.

    Year-to-date, coal-fired plants contributed 43.9 percent of the power generated in the United States. Natural gas-fired plants contributed 21.3 percent, and nuclear plants contributed 19.9 percent. Of the 0.8 percent contributed by petroleum-fired plants, petroleum liquids accounted for approximately 0.4 percent and petroleum coke accounted for roughly 0.3 percent. Conventional hydroelectric sources provided 8.7 percent of the total, while other renewables (biomass, geothermal, solar, and wind) and other miscellaneous energy sources generated the remaining 5.5 percent of electric power.

    While Natural Gas is a solid "insurance fuel" for the power generation fleet, and a stable home heating fuel, we remain skeptical that it can have any long lasting or meaningful impact in the overall U.S. Economy. Natural Gas has been around a very long time, and was traditionally flared/burned off as useless in oil production.

    Natural Gas has had 15 years to gain traction and gone through catastrophic boom and bust cycles with power plant construction, LNG debacles and massive trading fraud/manipulations.


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