The natural gas commodity cycle at work…

May 24, 2016 by Jim Colburn Leave a Comment

Low natural gas prices stimulate demand for gas-fired power plants… From the EIA (http://www.eia.gov/todayinenergy/detail.cfm?id=26312):

“Growth in natural gas-fired generation capacity is expected to continue over the next several years, as 18.7 gigawatts (GW) of new capacity comes online between 2016 and 2018. Many of the new natural gas-fired capacity additions in development are near major shale gas plays. The Mid-Atlantic states and Texas have the most natural gas-fired capacity additions under construction with planned online dates within the next three years (2016–18).”

From barchart.com, here is the long term price chart of natural gas:

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