Natural Gas Boom May End Coal's Dominance in US - IEA
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A surge in natural gas production and use in the United States may herald the end of the hundred-year dominance of coal in US power generation," according to an IEA report.
In 2005, coal produced almost three times as much power in the US as gas. By 2017, the race will be almost even.
Natural gas consumption is expected to grow 17 percent by 2017, according to the IEA report. The increase in consumption is expected to be driven by rising demand from China and the US.
"On the long-term, our world energy outlook sees gas demand growing faster than any other fossil fuel to 2035, and it's likely to overtake coal as the second most popular fuel and can provide a bridge, a bridge to a clean-energy future," said IEA director general Maria van der Hoeven.
The United States is currently the top consumer natural gas in the world, followed by Russia, but Asia is the fastest growing region. Increasing consumption in China is projected to make it the third largest gas user by 2012, according to the IEA.
Natural gas futures in the US, often traded using the ETF, (NYSE: UNG), are slightly lower on Tuesday. The price of natural gas reached 10 year lows earlier in the year, but has since stabilized as production and supply begin to balance out.
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In 2005, coal produced almost three times as much power in the US as gas. By 2017, the race will be almost even.
Natural gas consumption is expected to grow 17 percent by 2017, according to the IEA report. The increase in consumption is expected to be driven by rising demand from China and the US.
"On the long-term, our world energy outlook sees gas demand growing faster than any other fossil fuel to 2035, and it's likely to overtake coal as the second most popular fuel and can provide a bridge, a bridge to a clean-energy future," said IEA director general Maria van der Hoeven.
The United States is currently the top consumer natural gas in the world, followed by Russia, but Asia is the fastest growing region. Increasing consumption in China is projected to make it the third largest gas user by 2012, according to the IEA.
Natural gas futures in the US, often traded using the ETF, (NYSE: UNG), are slightly lower on Tuesday. The price of natural gas reached 10 year lows earlier in the year, but has since stabilized as production and supply begin to balance out.
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