Eastern Railroad Discussion > Shell: No shortage of natural gas in sight

An article in MarketWatch looks at the supply of liquified natural gas, and the worldwide demand for same. There's been concern (hope?) that a glut of natural gas will push coal prices through the floor, and shutter more coal fired generation plants.  The argument is the supply of gas will dry up, and suppliers will raise their prices, sticking it to the electric makers.

Royal Dutch Shell has invested heavily in natural gas.  With a bet the ranch project in Australia, with the purchase of British Gas,it is actively promoting conversion or replacement of older coal plants arund the world.  Shell anticipates a 2% growth in the fuel supply on an annual basis from now until 2030, with demand growing at 4-5%.

(A cynic would note they have  to make that argument. Betting the ranch as world prices collapse would take the company into the gutter.)


MarketWatch

The stronger US dollar also makes export coal less competitive, because US-supplied sources cost more than their overseas counterparts.

Natural Gas is for sure being overproduced due to the shale area and other factors. Being under $3 per MCF it is hard to make a profit currently.



Edited 1 time(s). Last edit at 02/21/17 14:42 by WLE2679.

Shell is building a large  "cracker" plant in the Pittsburgh, PA area 
using natural gas as a feedstock.
Be Well,
Tim Colbert  K3HX
 



Edited 1 time(s). Last edit at 02/22/17 22:11 by K3HX.