April 12, 2012

Gas Glut Rejiggers Industry - WSJ.com

A cost curve such as shown below will disrupt the energy business as the WSJ story describes. Coal is being displaced by natural gas as a primary fuel for baseload electricity generation. With so much natural gas supply coming on line, electricity costs are coming down and greenhouse gas emissions should also be coming down because natural gas burns cleaner (less CO2) than coal. The laws of economics work!

Even here in Vermont where our natural gas comes form Canada via Vermont Gas, Tom Evslin and partners have created a new company to take advantage of these low prices. NG Advantage hopes to compress the gas at a central location and truck it to large fuel users in northern NH, VT and NY not reached by pipelines at a price lower than their present fuel.
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