Assuming our six- to 18-month time horizon, the nonregulated energy businesses remain challenged by low gas prices and oversupply of natural gas. Regulated utilities are less sensitive to low gas prices, and actually are positively exposed to low gas prices. The United States energy industry is rapidly evolving or undergoing a significant revision to its landscape driven by a sudden abundance of natural gas. As a result, natural gas prices have fallen from over $10 per MMMBtu to as low as $2. So it's become cheap at the same time that EPA regulations are making many older coal plants uneconomical. The biggest beneficiaries are regulated utilities and U.S. consumer.Disclaimer: this is not an investment site; do not make any investment decisions based on what you read at this site. But that doesn't mean you can't use some common sense when reading the tea leaves.
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Monday, November 26, 2012
About As Clear As One Can Be: Coal Is Dead; Natural Gas Turbines To Benefit
Link here to Wall Street Transcript/Yahoo.
No crony capitalism.
ReplyDeleteIt isn't like the head of GE also is head of the Obama Jobs Council.
It isn't like GE build gas turbine electric generators.
It ... oh, never mind.
http://www.cbsnews.com/2100-250_162-7267745.html
http://www.ge-energy.com/solutions/
Of course, http://www.mrctv.org/videos/obamas-jobs-council-chief-ge-ceo-jeff-immelt-says-he-will-vote-romney-obama-has-had-no-jobs-meetings-months
anon 1
Yes, it's quite incredible.
DeleteAnd to think two years ago I would have never known these relationships; I've learned a lot through blogging.
Now, on the bright side, the silver lining as it were: this pretty much means it would be foolhardy to do anything to hurt the natural gas industry. I don't think the administration would want to kill two industries: the coal industry AND the natural gas industry. But, I suppose, one never knows.