Frack Gas Not Likely to Displace King Coal, Study Suggests

Well, I suppose, on the upside, GE will be adding to our exports.

 

http://www.forbes.com/sites/danielfisher/2011/09/01/frack-gas-not-l...

 

That isn’t going to happen, the authors conclude, for a variety of reasons. First, pipelines would have to be expanded by a third just to move an additional 10tcf of gas to power plants. There’s also no economic evidence to support wholesale fuel-shifting when gas prices drop relative to coal. A 1973 to 2007 study by EIA, World Bank and University of Calgary showed cross-elasticity of coal to gas of 0.064, meaning gas use in electricity increases 0.6% for every 10% decrease in gas prices relative to coal.

 

80P

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Oil & Gas ProPermalink Reply by dbob on October 2, 2011 at 17:28

Sesport I don't think this study gets it:

 

The fuel shift will occur more due to changes in environmental regulation, the age of coal fired power plants, and need to provide flexible/scalable base load to balance wind and other renewables.  Its juts bonus that the price of gas is getting lower now.

 


landownerPermalink Reply by essay on October 4, 2011 at 3:49
permitting and building a new nuclear facility might be on the short list of things that would make building pipelines look quick and easy.

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