Insight
US coal retirements put natural gas to the test
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Economic gas-to-coal displacement has historically provided a powerful balancing mechanism during the summer injection seasons for North American gas markets. Higher gas prices would normally result in utilities switching generation from gas to coal units. However, as Henry Hub prices rallied higher in summer, the economic displacement stalled with fewer coal units dispatching. As the US power market continues to transform with increased penetration of renewable generation, the capability of the gas market to support power demand throughout the year will be tested by mounting coal unit retirements.
Table of contents
- Where’s the ceiling?
- Gas-to-coal switching stalled
- Changes in store for seasonal dispatch
Tables and charts
This report includes the following images and tables:
-
Henry Hub gas price in the short term goes off the rails as it searches for a new ceilingUS gas production response to higher prices more muted than in the pastPrice elasticity of gas power burns disappears at higher pricesUS gas demand seasonality (bcfd)
What's included
This report contains:
Other reports you may be interested in
Insight
North America gas: 2023 in review
Our recap of the key trends shaping market fundamentals and prices in 2023
$950
Asset Report
Tubarao steel plant
Tubarao is ArcelorMittal's largest steelmaking unit in the Americas with a 7.6-Mtpa crude steel capacity.
$2,250
Asset Report
Antero Resources - Lower 48 upstream
A valuation of Antero Resources upstream assets in the US lower 48.
$22,800
