Entering text into the input field will update the search result below

Power sector may be losing appetite for natural gas, analysts say

Mar. 01, 2017 5:57 PM ETIDU, XLU, VPU, RSPU, SDP, UPW, UTG, UNG, FXU, GAZ-OLD, GUT, UNL, DCNG, BOIL, KOLD, BUI, UGAZF, DGAZF, FUTYBy: Carl Surran, SA News Editor47 Comments
  • Energy analysts are forecasting that gas demand from the U.S. power sector will flatline and possibly fall off significantly over the next five years as gas-fired plants come under increasing competition from wind and solar farms.
  • Adding to the uncertainty is the fate of former Pres. Obama's Clean Power Plan, which would dramatically cut carbon emissions from power plants and was seen as a boon to natural gas, and even potential gains for coal as Pres. Trump pledges to support that industry.
  • Global demand for liquefied natural gas is growing, and U.S. chemical makers are seeking more natural gas as a feed stock, and growing demand in these markets is expected to lift prices off of last year's lows, pressuring generators that fuel plants with natural gas to shift towards other energy sources.
  • Wood Mackenzie's Prajit Ghosh estimates gas prices could rise more than 40% this year to as high as $3.70/MMBtu, up from an average of $2.62 in 2016, a point at which he says coal plants would start competing with gas plants again.
  • ETFs: UNG, UGAZ, XLU, DGAZ, UTG, BOIL, IDU, VPU, GAZ, KOLD, GUT, BUI, UNL, FUTY, RYU, DCNG, UPW, FXU, SDP

Recommended For You