An article on coal-to-gas switching, environmental regulation and US compliance quotes data and analysis from PA’s energy experts Matt Mooren and Mark Repsher from an interview with Thompson Reuters energy reporter Jeanine Prezioso.
According to Mark and Matt’s analysis (described in the interview), through the first three quarters of 2011, U.S. natural gas prices were approximately $0.35/MMBtu (or 8%) lower than corresponding 2010 figures, while Powder River Basin commodity and transportation prices were relatively flat.
The article quotes them as saying “coal-fired power generation in the Midwest fell about 4 per cent in the first three quarters of 2011, while gas-fired generation rose roughly 8 per cent.”
Mark and Matt also mentioned in the interview that current February-December 2012 U.S. forward natural gas prices are projected to be approximately $0.95/MMBtu below 2011 natural gas prices (which is equivalent to a further ~25% decline in natural gas prices); combined with flat-to-increasing Powder River Basin commodity and transportation prices, this trend may further exacerbate the coal-to-gas switching witnessed in the MISO wholesale electricity market.
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