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Natural gas power generation in high demand

Environmental concerns over coal emissions have caused a noticeable trend among power plants in recent months to abandon the hazardous power generator completely. According to the American Petroleum Institute (API), a continued increase in demand for natural gas for use in power generation is expected to be the biggest driver for U.S. gas demand in 2015.

John Felmy, chief economist for API:

“The biggest trend is probably what we’ve seen in previous years and that’s more natural gas in power generation, as we see more coal plants shut down, primarily for environmental regulations.”

With rapid advancements in horizontal drilling over the past three years, the United States has taken over as the global leader in energy development. Look no further than the Marcellus and Utica shale plays in the Pennsylvania and Ohio region, respectively. The shale combines to form the largest natural gas producing region in not only the United States, but the entire world. In fact, the region is projected to produce 16 Bcf/d of natural gas in 2015, up from 2 Bcf/d in 2010. The increase domestically in natural gas production has seen the transportation industry in the United States take advantage, from standard vehicles, to trains, to big rigs, the market for natural gas is growing quickly.

“We’ve seen, for example, some truck stops invest in the infrastructure to be able to supply LNG or CNG,” said Felmy. “I just saw an announcement of a couple of ships to be built in San Diego that would be powered by natural gas. Clearly the railroads are looking at natural gas as an opportunity because of relative cost, although that’s narrowed somewhat because of the sharp fall in diesel prices.”

Felmy says that steep challenges still face the auto industry when it comes to incorporating natural gas.

“Vehicle use of natural gas is very small,” Felmy says. “It’s only about one-tenth of 1 percent of the gas consumption. So it’s got a ways to go to catch up with the other sectors.”

Felmy says that the biggest challenge for automobiles is the upfront cost to convert a gasoline—or diesel fueled—vehicle to natural gas or to build a new natural gas-fueled vehicle. He says that even the project that’s the furthest along is not going to be operational until the beginning of 2016. What natural gas producers must focus on now is how many terminals ultimately get built and how much LNG can be exported from those terminals.

57 comments

  1. Coming to a power plant near you.

  2. Seems if this were the case then the Bakken woukdnt be flaring so much

  3. If gas prices keep falling everything will run on natural gas

  4. Gotta make up somewhere.. Just look forward to that natural gas bill to increase..

  5. Curt….if you only knew. This is possibly the single “dirtiest” form of energy there is, sure at the end user it burns pretty cleanly,but, to get it to your doorstep…..it’s a very dirty process for the environment.

  6. Hey Mountãin Man have you seen how they mine REE’S for solar panels and windmills. Then tell me how dirty natural gas is.

    • You should do some follow up on those claims. Not the decline since pre drill testing started. Also pay attention to poor water well construction. Also take a look at water samples from Pa. Before shale drilling started in those areas. You can Google these …. but you wont.

    • I know most of those people in Dimock for 30 years or more….NEVER was there any water issues.

  7. ^ haha you are a troll, Google the lawsuit that was brought against WPX and see how the people tried to make that stuff up….the water is dirty there to began with there “mountain man”

  8. I’m with ya on that bro, some bs there

  9. So the penna DEP made ALL this up then huh ? By the way I heat my home with wood ( only the dead trees too ). I suppose all those earthquakes are the work of nature all by herself as well. ( funny how those quakes are always near fracking ) Go ahead and deny that too.

  10. Also….I am not affiliated with ANY party or groups…..I am affiliated with the truth.

  11. What exactly is the “truth” you believe depends on how ignorant you are

  12. Woop, lunch break is over, time to get back to fracking….

  13. Liberals think all these cars and home necessities run on unicorn milk and fairy dust

  14. If any body s looking for a labor or boom hand give me a shout 3304019625 will work no matter the conditions

  15. Every year something like this comes out- I’ll believe it when I see. I’m all for it, I would love to see the Barnett Shale come back to life

  16. Mountain man change your name hippi man freak

  17. Mountain man your all about being Green but you automatically believe something you see on national news, if your going to be a green keeper you should understand that the national news reports are funded by Someone, they all get a paycheck as well, they report what they are told to report. Back your opinions up with facts other then from news sources and people might be more willing to hear your arguments.

    • So now we are not to trust the NATIONAL NEWS. ABC news will always put their nuts on the chopping block for a few anti-frackers? Speaking of backing up what I say…..I guess you didn’t see the posts I put above? Penn DEP must also be liars too then ?

  18. Mountain man isn’t a hippy or he would know that mass media is not to be trusted lol don’t insult us true hippies

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