For the first time ever, natural gas has overtaken coal as the primary source of U.S. electric power generation earlier this year. For years this milestone has been in the making, as the price of gas has fallen, and new regulations have increasingly made coal riskier for power generators, and the power gen industry switches from coal to gas.
SNL Energy, a research company, said in a new report utilizing data from the Energy Department that approximately 31% of electric power generation in April came from natural gas, and 30% from coal.
The U.S. drilling boom that began in 2008 has increased domestic natural gas production by 30% and rendered the U.S. the world’s largest O&G producer.
U.S. coal production is forecast to decline by 7.5% this year, according to the EIA. Meanwhile, U.S. coal mining firms’ shares and bonds have steeply fallen.Read more…