While last year’s unique market conditions drove 1 trillion cubic feet (Tcf) in coal-to-gas switching, Platts reports that those unique circumstances in the power sector created a head fake - a false market signal that appeared to promise that increased power burn demand would help offset ongoing supply growth in shales. Although gas continues to make gains in the power sector, that rate of increase is expected to decline.
Platts Market Alert titled Power Burn Head Fake Catches Market Off Guard examines the U.S. power sector, focusing on increased demand for natural-gas-fired capacity and the prospects for increased coal-to-gas switching.
In this report, Platts examines the impact that volatile gas prices and the construction of new gas-fired power plants have had on gas-fired power demand growth. Platts predicts the impacts that record gas production will have on pricing and the ability of gas to capture power generation market share. In addition, Platts includes a five-year power burn forecast along with several scenarios of how power burn might react to major market, regulatory and legislative events. As part of Platts' Forward Curve Suite™, this market alert lays the groundwork for understanding how power burn and coal-to-gas switching over the next five years will interact with other upcoming market events in the overall U.S. gas supply and demand picture.
The Forward Curve Suite™ is a Platts report series that examines the top natural gas market issues for the 2010 to 2015 timeframe. This market analysis package includes Forward Curve Quarterly™ and a five-part Market Alert series. The Forward Curve Quarterly™ is a quarterly assessment of U.S. supply, demand and prices for the upcoming five-year term.
The LNG Market: New World Order – The major shift in U.S. LNG market changes are put into perspective in this report, and Platts offers a broad overview of how these changes are affecting current global LNG supply and demand conditions, including regasification and liquefaction capacity additions.
The Big Squeeze: Canada, Ruby and Marcellus – details Canadian supply and demand trends as well as Canadian supply displacement from U.S. shale gas growth. Platts studies production and consumption patterns in Canada to determine the relative level of gas available for export to the U.S. The report assesses U.S. regional import trends to see where Canadian gas will be needed. The impact of the Ruby Pipeline on both Canadian and Pacific Northwest supply/demand balances are examined along with a forecast of Alberta gas prices and basis based on expected production, demand and net western Canadian exports.
The Sky Is the Limit? U.S. Shale Gas Soars! – focuses on the explosive growth of production over the last few years from U.S. unconventional gas plays and how new applications of technologies, such as hydraulic fracturing and horizontal drilling, lowered costs and boosted productivity beyond their means. The Market Alert details key issues U.S. gas producers face as the industry responds to a challenging oversupply correction period.
Natural Gas Demand: Waking the Sleeping Giant – completes the Market Alert series with a long-term outlook recap of the entire Forward Curve SuiteTM that highlights the key market events and factors that could impact the natural gas outlook for the next five years.