Coal’s Unexpected Ally: Natural Gas
Guest post by David Middleton
I concluded my previous coal post, The Resurgence of the American Coal Industry, with the following:
The U.S. coal industry is doing exactly what the oil & gas industry did from 2014-2016. In the face of oversupply relative to demand and a collapsing commodity price, the industry is making itself “leaner and meaner.” Mr. Denning referred to natural gas as the “enemy” of coal. That’s funny, I find oil & gas for a living and have never thought of coal or nuclear power as enemies. Fair competition is good for business… And as an electricity consumer, I don’t like paying more than 10¢ per kWh for electricity.
Natural gas prices are unlikely to remain this low for very long. $2.50/mmbtu is uneconomic in most of the shale plays and very uneconomic in the Gulf of Mexico, except on a…
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