Energy past, present and an LNG future? - Re: Energy

Posted - Wednesday, July 24, 2013 - Re: Energy


Lawrence Livermore National Laboratory found that in 2012, America continued the trend of using more natural gas, solar and wind to generate electricity, and less coal. The Livermore report found that overall energy use was down 2.2 quadrillion BTUs in 2012 when compared to 2011. The report also showed a direct correlation between the increase in natural gas use in the electric power sector and the decrease in coal use for electricity. Apparently, 2012 was the first year in at least a decade where nuclear energy production has decreased, with up to four reactors going offline last year. The report cites "extraordinary declines in prices of photovoltaic panels" being responsible for the almost 50 percent increase in solar production, and cites significant gains in wind production, reaching 1.36 quadrillion BTU. 

2012 Energy Flow Chart by Lawrence Livermore National Laboratory

The spot price of natural gas has risen to almost 60 percent in the first six months of 2013 (averaging $3.75 per MMBTU) compared to the same time period in 2012 (averaging $2.39). EIA recently released data showing that wholesale electricity prices in every region of the lower 48 states have also risen in the first half of 2013 when compared to the same period in 2012. The primary reason EIA cites for this increase is the rise in the price of natural gas. However, even with these price increases, the overall price of natural gas is still extremely low compared to historical prices. So low, in fact, that gas production in many states is stalling, with the exception of production in the Marcellus Shale play, which has increased around 50 percent in the first half of 2013 versus the same period in 2012.

Many natural gas producers see the development of a robust U.S. natural gas export market, via liquified natural gas (LNG) production and export terminals, as an attractive solution to secure higher prices for their gas product and open up addition gas-rich shale plays. Federal regulators are debating the issue in D.C. and earlier this month, nearly three dozen bipartisan Senators sent a letter to the Obama Administration urging swift decision-making that could open up cheap U.S. gas to international markets.

Post to be found at:
http://pfenergycenter.blogspot.com/2013/07/energy-past-present-and-lng-future.html