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Recent Rally in Natural Gas Prices Could See Utilities Switch Back to Cheaper Coal

Before It's News -- The recent rally in natural gas prices could prove beneficial to coal miners. The spread between the NYMEX Central Appalachian coal and Henry Hub natural gas futures on Thursday was the widest it has been in over a year. The gap on Thursday reached $1.25 per million British thermal units (mmBtu) according to data from Reuters. The cost of transporting Eastern coal is roughly $1 per mmBtu, so when the discount is above $1 per mmBtu it becomes more cost effective for utilities to burn coal instead of natural gas. Since April, natural gas has rebounded to $3.28 per mmBtu from $1.902, while coal has dropped to $2.13 per mmBtu from $2.03, according to Reuters.

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Submitted Oct 06, 2012 By: NOTSOGRN
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: Recent Rally in Natural Gas Prices Could See Utilities Switch Back to Cheaper Coal Back to Topics
REPLIES (newest first) Post a Reply
teenitup
Champion Author Houston

Posts:5,390
Points:968,270
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Message Posted: Oct 8, 2012 10:16:57 PM

This is why the Obama administration's (using the EPA) attacks on coal and existing coal plants are so shortsighted. Coal's abundance alone is a threat to threat to the green agenda. Fracking is a threat to the green agenda as it has brought on an oversupply of natural gas and the whole "threat" of cataclysmic, end of all our water supply, earthquakes, breast cancer, etc. scenarios from the EPA and 'environmentalists'.

There's simply no indication that natural gas prices would stay at these near historic lows for long. Natural gas should easily triple from this years earlier lows of $2 per MCF, just an increase to $4 per MCF would certainly bring coal right back into the picture.

DerHahn
Champion Author Illinois

Posts:17,780
Points:2,879,530
Joined:May 2004
Message Posted: Oct 8, 2012 9:57:04 AM

the "rally" in nat gas prices was totally expected. t-boone pickens wouldn't be pushing it if he wasn't thinking about making money on it.
remay
Champion Author Houston

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Message Posted: Oct 8, 2012 5:53:23 AM

It always about the big green stuff ($$$$)...
listerone
Champion Author Boston

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Message Posted: Oct 7, 2012 8:44:23 AM

We have *lots* of coal which is excellent for generating electricity.We should use it...along with gas,oil,nuclear,hydroelectric,etc.
Martinman
Champion Author Mississippi

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Message Posted: Oct 7, 2012 8:36:04 AM

Amazing that websites such as this are allowed to remain.

Here are some of the other "Top Stories" high-lighted by "Before It's News" on its main splash page:

- Shocking FEMA Bill HR6566: Ordering National Preparation For Mass Death, Video

- Prophetic: The Lord God warns many countries now!

- Early On Line Poll Shows Ron Paul (write in) Three Percent Ahead of Romney - Worth Following...

- Clinton Assassination Threat? Santilli Contacts Russian Embassy For Protection

- Hollow Earth Strange Photos

- FEMA To Mobilize For “Mass Fatality Planning”

- 100% Proof Of Alien Civilizations Exist On The Moon - NASA Lies Uncovered In Colour

- The ‘Surprise’ Job Report This Morning Spell Serious Trouble For Stock Market

- Moon Object Is 200 Miles Long! -The Next Big Thing Is Already Here, SF

Yep - that's "credible" reporting there...

.

[Edited by: Martinman at 10/7/2012 9:36:51 AM EST]
Martinman
Champion Author Mississippi

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Message Posted: Oct 7, 2012 8:28:52 AM

Article is poorly written.

Isn't a change in "cost" from $2.03 per mmBTU to $2.13 per mmBTU an INCREASE, not a "drop" as reported?

Second, the article is quite misleading (surprize!)

Even for existing electric generating plants, natural gas fired units are twice as efficient as coal-fired units.

Efficiency generally ranges from 28% to 31% for coal-fired, 60% to 61+% for natural gas fired generating units (electricity generated per BTU burned).

Thus coal would not just need to reach parity, natural gas would have to become TWICE as expensive as coal for the cost-basis to reach parity.

Third, the story assumes that while natural gas futures prices are volatile, that coal futures prices are not.

Fourth, coal-fired units take significantly longer to bring online (up to 4 days compared to hours for natural gas).

Fifth, coal-fired units required more workers per mega-watt of power generation to operate.

Then there is the cost of settling ponds, ash removal, and other post-production costs that burning natural gas simply does not have.

[Edited by: Martinman at 10/7/2012 9:33:41 AM EST]
bababooey2
Champion Author Hartford

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Message Posted: Oct 7, 2012 5:53:55 AM

Good
yardslave
Champion Author Oklahoma City

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Message Posted: Oct 7, 2012 5:51:07 AM

Repost?
melvindale
Champion Author Michigan

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Message Posted: Oct 7, 2012 12:21:41 AM

The rich get richer and the rest of us are screwed.
dwh724
Champion Author Pittsburgh

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Message Posted: Oct 6, 2012 11:53:38 PM

Okay
jetskijerry
Champion Author North Carolina

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Message Posted: Oct 6, 2012 11:50:13 PM

Make up your mind.
jjw0608
Champion Author Milwaukee

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Message Posted: Oct 6, 2012 11:47:05 PM

ALL GARBAGE!!!!!!!!!!!!
jtfftj
Champion Author New Hampshire

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Joined:Sep 2005
Message Posted: Oct 6, 2012 11:46:26 PM

Re: Boatmen: So were self-serve gas stations. Retailers would save labor and pass the savings on to us. Didn't happen. Didn't have to happen in New Jersey because they didn't buy in to the argument and still have mandated full serve. Good job, Gov. Christie, and all you who support it.
clermont40miles
Champion Author Cincinnati

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Message Posted: Oct 6, 2012 11:44:55 PM

Good to see coal coming back. Also good to see NG being affordable. Will take some time for the supply and demand to even out.

Are speculators artificially boosting prices on NG as they do daily on gasoline, diesel and crude?

We MUST stop the commodity market from being used as a stock market with paper traders causing price changes at whim, having nothing to do with market realities.

.
boatmen
Champion Author New York

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Message Posted: Oct 6, 2012 11:40:24 PM

Like everything else When enough buy in price goes up remember ATM cards were to save money
SHEP20715
Champion Author Maryland

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Points:2,494,740
Joined:Nov 2007
Message Posted: Oct 6, 2012 11:39:03 PM

Steelpenny...You can't even look forward to 2016, after the actions of the Regressives, trying to carry the country back 100 years, it will be a cold day in hell before they get anywhere near the White House
WilW
Champion Author Atlanta

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Message Posted: Oct 6, 2012 11:38:28 PM

Glad I locked in my price for the winter.
chyguy3
Champion Author Wyoming

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Message Posted: Oct 6, 2012 11:38:12 PM

No way. Too little and won't last.
aggietim
Champion Author Fort Worth

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Message Posted: Oct 6, 2012 11:37:38 PM

ok
thinkaboutit
Champion Author Colorado

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Message Posted: Oct 6, 2012 11:36:15 PM

Paragon stock could rise or fall in the future. Nobody can predict individual developments for sure.
cheapertvs
Champion Author Richmond

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Message Posted: Oct 6, 2012 11:35:17 PM

Coal makes a comeback!!!
monieet
Champion Author California

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Message Posted: Oct 6, 2012 11:34:54 PM

OK
10k
Champion Author North Carolina

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Message Posted: Oct 6, 2012 11:34:51 PM

steel penny:

and my family is doing their part to help him out the door..we have 19 registered voters, of which 14 are dems, 4 are repubs, and i am the lone independent..we will vote 19-0 to remove zero boy ;)
pa79th
Champion Author Pennsylvania

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Message Posted: Oct 6, 2012 11:34:16 PM

Nah! Too much regulation in coal. Obama killed it for now.
boatfloyd
Champion Author Jacksonville

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Message Posted: Oct 6, 2012 11:32:16 PM

More bad air.
RoadKing95
Champion Author San Jose

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Message Posted: Oct 6, 2012 11:30:11 PM

The purpose of this "article" is nothing more than an advertisement for you to buy coal futures from paragon. If you're dumb enough to believe it jump in and buy all you can. It simply is not going to happen. You're all being duped. But then that's why they put it in a right wing blog (they know the audience is gullible).

[Edited by: RoadKing95 at 10/7/2012 12:33:46 AM EST]
LostInNY
Champion Author New York

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Message Posted: Oct 6, 2012 11:30:06 PM

no free lumps on Xmas
langolera
Champion Author Akron

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Message Posted: Oct 6, 2012 11:29:00 PM

ok
goldrose1
Champion Author Cleveland

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Message Posted: Oct 6, 2012 11:28:53 PM

speculators...
defiancegasman
Champion Author Ohio

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Joined:May 2006
Message Posted: Oct 6, 2012 11:26:40 PM

" while coal has dropped to $2.13 per mmBtu from $2.03, "

Good Article, full of usefull info like a rise is a drop. Figures don't lie, BUT LIARS FIGURE!!!
Badjef
Champion Author Florida

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Message Posted: Oct 6, 2012 11:25:32 PM

liberals at work. Conservatives behind them to clean up the mess.
TFowler513
Champion Author Memphis

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Message Posted: Oct 6, 2012 11:24:53 PM

speculators at it again.
yakstar
Champion Author Montreal

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Message Posted: Oct 6, 2012 11:24:26 PM

switch to a cleaner fuel?
Yankee829
Champion Author Dallas

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Message Posted: Oct 6, 2012 11:23:50 PM

Ok
Aviator_Rob
Champion Author New York

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Message Posted: Oct 6, 2012 11:23:40 PM

Do you actually hear yourself sometimes, @judgemobile? We don't import oil or natural gas to fuel our powerplants. All of that is produced domestically.

Retrain those coal miners and ship them to the Dakotas where they can be put to use drilling oil and gas wells.
don10
Champion Author North Carolina

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Message Posted: Oct 6, 2012 11:23:28 PM

ok
Zonk
Champion Author Michigan

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Message Posted: Oct 6, 2012 11:21:15 PM

Personally, I would stay with Natural Gas.
Aviator_Rob
Champion Author New York

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Message Posted: Oct 6, 2012 11:20:14 PM

So, @SteelPenny, what are you gonna do if your prediction doesn't come true?

It's a long way to 2016.
tedjm1
Champion Author New York

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Message Posted: Oct 6, 2012 11:19:32 PM

okay
dirt girl
Champion Author Twin Cities

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Message Posted: Oct 6, 2012 11:18:43 PM

Rising price of natural gas is not good news for people who heat their homes with it.
chuckwthompson
Champion Author Charlotte

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Message Posted: Oct 6, 2012 11:15:21 PM

The price will always continue to rise.
danol43
Champion Author Modesto

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Message Posted: Oct 6, 2012 11:13:58 PM

That's what the market does.
crreed1
Champion Author West Virginia

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Message Posted: Oct 6, 2012 11:13:38 PM

back to coal
Rooster922
Champion Author Wilmington

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Message Posted: Oct 6, 2012 11:13:12 PM

Really?
pastorpaulcg
Champion Author Virginia

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Message Posted: Oct 6, 2012 11:11:58 PM

As demand goes up, price goes up
millerin
Champion Author Orlando

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Message Posted: Oct 6, 2012 11:11:44 PM

hmm...
nurdco
Champion Author Colorado Springs

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Message Posted: Oct 6, 2012 11:11:15 PM

pay the stove or pay the plug....

YOU STILL PAY
SteelPenny
Champion Author Dallas

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Message Posted: Oct 6, 2012 11:11:09 PM

Zero'BOY loses his job soon (January 2013)
Ebaz
Champion Author Oklahoma City

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Message Posted: Oct 6, 2012 11:11:07 PM

Er no not likely
TheSicilian
Champion Author Jacksonville

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Message Posted: Oct 6, 2012 11:10:36 PM

what next
cheap59
Champion Author Michigan

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Message Posted: Oct 6, 2012 11:10:00 PM

This will be interesting.
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