Natural gas is now a common source of electrical power and its price could be rising in 2018. Coal was ahead of natural gas for years when it came to use as fuel to create electricity. This was not because of its properties. Natural gas only releases one molecule of carbon dioxide and two water molecules when it is burnt making it a great source for fuel.
Coal was portable and cheap which made it dominant. Not only was natural gas expensive but without pipelines it was difficult to move. In the 1990s the U.S. was swept by the shale revolution. Natural gas prices plummeted, and pipelines were put in everywhere. Coal lost the top spot to natural gas. Visit Matt Badiali at medium.com to know more.
Power generation is easy with natural gas while the power from coal needs to run constantly. This is the reason coal mines had giant plants built at them by companies. It is more difficult to continually truck fuel in than it is to run power directly from the plant out to where it needs to go. Natural gas provides fuel on demand. When you need electricity quickly all you do is turn on the gas turbine. A gas turbine is like the oversized engine of a jet.
Natural gas is the new go-to source for electrical power. And the price of natural gas could soar in 2018. Here’s why . . .#Energy #NaturalGas #investing #Markets #Commodities #BanyanHill $DIG $DUG $UNG https://t.co/WIw7KglLIj
— Matt Badiali (@Matt_B_Guru) December 19, 2017
Natural gas is a good partner for wind and solar alternative power sources. You can fire up the turbine if it’s dark or the wind isn’t blowing. The supply of natural gas increased along with the demand and the price went from fourteen dollars per thousand cubic feet during 2008 to as low as $1.65 during 2016. That is a drop of eighty-eight percent over an eight-year time span. The price increased during 2016 but then hit its lowest price in more than a year. The trend of natural gas is currently down. Follow Matt Badiali at stocktwits.com
The Energy Information Administration keeps track of natural gas in storage and the price per trillion cubic feet. During the summer the production of natural gas is put into storage. In the winter the supply of natural gas is used to make electricity that cooks food and heats homes. The notable drop in prices during 2014 should be seen again during 2018.
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