Search Results for: gas price

Caveat Emptor – Be Wary of Gas Salesmen Claiming Long Term Low Prices

…e with which new equipment can be installed and due to a bubbling economy, gas prices can soar. Since high prices encourage high hopes for fast profits, drilling activity will increase to provide a larger supply which can initially be sold at a wonderful profit. Unlike consumption equipment, however, drilling equipment is complicated and expensive; there is a limited supply of the rigs and the crews required to operate them. The change in supply i…

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Natural gas burners file suit challenging fairness of New York Zero Emission Credts

prices below the level necessary to keep some nuclear plants operating. If gas prices rise faster than currently expected by most market observers, energy prices will quickly rise to levels that are sufficient to keep nuclear plants operating. NYSDPS recognized and accounted for this possibility when it designed the ZEC; the price for the ZEC phases down gradually once prices exceed a certain level and disappears completely once prices hit a secon…

Cheap Gas Drumbeat – Quotes from the Chorus of Chanters

…methane gas, I would post the same price picture of gas with the caption “Gas prices might be low now, but in the past 10 years we’ve seen at least 4 price peaks escalating the price 4 to 5 times.” If the chart is somewhat consistent, we might see another small to large peak come in the next year or two. Tom But is the past always prologue? Rod, you have put that graph on gas up a lot, but how do you address the argument that the unconventional r…

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Shale gas – boom, bubble, financial manipulation or smoking gun attack on competition?

…ations in a new report, “Shale and Wall Street: Was the Decline in Natural Gas Price Orchestrated,” which was released in February. Rogers reveals how Wall Street drove the shale gas drilling frenzy by overestimating the amount of well returns, which resulted in prices lower than the cost of production for the operators who bought the drilling leases. Consequently, these operators borrowed millions of dollars on assets that either don’t exist or m…

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Logical Basis For Sec. Rick Perry’s Resiliency Pricing Rule.

…entury when the only use for electricity was “keeping the lights on.” When gas prices rise, electricity prices rise just as rapidly if coal, nuclear and hydro plants have been pushed into retirement. That’s one of the reasons that so many suppliers have reacted so negatively to Secretary Perry’s order to establish sustainable pricing rules for power plants that are not vulnerable to dramatic changes in the natural gas market or the natural gas del…

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Where is the huge increase in US natural gas supply?

…d to the US energy market. They keep telling me that is the reason that US gas prices have stubbornly remained at levels about 1/6th to 1/3 the levels in Europe, Japan and India. The ads – often disguised as a political speech – say that this new technology is what allows gas producers to promise that they can replace the output from coal plants that are being forced to shutdown. Those coal plant shutdowns, by the way, are often as a result of foc…

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FERC Proposal Supporting Coal And Nuclear Prompts Howls From Gas, Wind, Solar, Antinuclear

…store as electricity > Here is a graph of the monthly variation in natural gas prices for the past 20 years at the most commonly cited trading point in the U.S.[showing large gas, not electricity, price variations] Am I the only one who sees these natural (gas, and oil, coal, and uranium) supply/demand price variations as being similar to the natural variations in wind and solar supply (at earth surface)? Natural phenomena we should be adapting to…

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Why do nuclear energy developers ask for predictable market prices?

…US, we have had the “luxury” of about four years of extremely low natural gas prices. The nuclear renaissance that was gaining steam before 2008 has just about died out with only four reactors actually moving forward out of the 30 or so that were once in serious planning. Surprise, surprise, natural gas prices have started to rise again, with a 75% increase from the low point. (The low was just under $2 per MMBTU, the current price is $3.52 per M…

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Power In New England: Why are Prices Increasing so Rapidly?

…trong cold-spell and residential gas demand reached record levels. Natural gas prices on the spot market rose as high as $120 / MMBTU from a pre-cold wave price of about $4-6 / MMBTU. Gas-fired generators without firm supply contracts could not afford that gas. Simultaneously, electricity demand spiked. As oil-fired power stations came online to meet the grid demand, electricity prices spiked as high as $1290/MWh (compared to the annual average of…

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Existing nuclear plants are valuable and worth saving

…History Lesson The US has been here once before; during the 1990s natural gas prices went through a lengthy period of sustained low prices and several nuclear plants were closed only part way through their useful life. During the period from 2004-2009 the remaining nuclear plants minted cash as natural gas prices inexorably rose from the 1990s price of $2 per MMBTU to remain above $5 per MMBTU for five straight years with a peak monthly price for…

NIRS, Natural Gas and Aggressive Competition For Calvert Cliffs Unit 3

…300 million cubic feet of natural gas each day. At today’s “cheap” natural gas prices, that amount of gas would cost $1.2 million per day, but once gas prices return to the levels that existed in 2008, that amount of gas will cost almost $5 million per day. In comparison, the nuclear fuel for an EPR costs about $190,000 per day. Power companies can lock in nuclear fuel prices for many years into the future if desired. (Remember, a cost to utilitie…

Betting for consumers on the volatile price of natural gas

…me scrutiny on fuel price increases as there are for capital expenditures. Gas price volatility should be analyzed for gas turbines at the permitting stage just as capital costs are reviewed. After all, nuclear units run for at least 60 years these days and fuel price variability should be taken into account. David Lewis The World Energy Assessment, put out by the UNDP (United Nations Development Program), sets total gas reserves (“conventional” +…

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