Prior to the recent surge in oil and gas production, U.S. energy consumers were facing all-time high prices for petroleum-based products and natural gas. EIA forecasts continued to suggest that energy prices would likely climb even higher going forward. Instead,…
The ongoing drop in the number of drilling rigs searching for crude oil now exceeds the collapse in natural gas rigs suffered back in the 2008-2009 period. Our pic of the week illustrates the similarity in size and pace between the respective oil and gas drilling collapses. Crude rigs are off
Has the Shift From Coal to Natural Gas in Electricity Production Stalled? Just ten years ago, coal was used to generate 50% of U.S. electricity while natural gas held only an 18% share. Toss in the shale gas revolution and move forward to early 2012 and you have both coal and natural gas producing 32% of U.S. power each. It appeared natural gas was well on its way to replacing much of the coal-fired production in the U.S.
However, our pic-of-the-week illustrates that since early 2012 the shift has taken a clear short-term breather. Coal has made a small comeback and is now closer to 40% of total production. Natural gas has eased back a bit to just under a 30% share. Is the shift from coal to natural gas over?
Natural Gas Production Gains Since 2005 are Highly Concentrated in Only a Few States – U.S. natural gas production has increased by nearly 50% since 2005, from about 18 trillion cubic feet to nearly 27 trillion cubic feet annually.
Domestic crude oil production is similarly up about 50% since 2009.
Texas remains the largest player, with production up 50% the
Natural gas price spike temporary, analysts say Mark Snead is quoted in John Stancavage's article in the Tulsa World on the recent natural gas spike .