In 2018, energy-related CO2 emissions forecast to rise for each fossil fuel—petroleum, natural gas, and coal—for a total increase of 111 million metric tons. According to EIA’s Short-Term Energy Outlook (STEO), this rise in energy-related emissions is caused by an overall rise in electricity output, and reverses a 3-year trend of falling emissions in the power sectors.
Coal-fired electricity generation in China, the world’s largest coal consumer, is expected to remain flat through 2040, according to EIA’s International Energy Outlook 2017 (IEO2017). Other fuels, such as renewables, natural gas, and nuclear power, are expected to make up increasing shares of China’s electricity generation.
Rising costs of fuels burnt for power generation have caused a substantial rise in residential electricity prices across the United States. The price of natural gas averaged $3.53/mmBtu in the first half of 2017 – a 37% rise compared with the first half of 2016; meanwhile the average delivered cost of coal dropped 2%, according to EIA figures.
Despite declining costs for generating electricity from fossil fuels in the U.S., retail electricity prices have continued to rise in line with inflation – mainly due to higher expenses for delivering the electricity to end-customers. Power transmission costs have increased in real 2016 dollar terms from 2.2 cents/kWh in 2006 to 3.2 cents/kWh in 2016, roughly offsetting the decrease in the generation costs.
Having moved to a competitive market, Mexico’s Energy Regulatory Commission (CRE) released its first monthly price report on August 18 which shows that Mexican marketers sold gas at $4.10/mmBtu on average in July. CENAGAS, Mexico’s pipeline system operator also launched its natural gas capacity reservation system with electronic bulletin boards for posting natural gas flows.
Drilling activity and production of crude oil and natural gas is picking up in Oklahoma’s Anadarko Region, notably in two areas commonly known as the STACK (Sooner Trend Anadarko Canadian and Kingfisher) and the SCOOP (South Central Oklahoma Oil Province) plays. According to EIA’s Drilling Productivity Report, the rig count in the region has risen from 84 in January to 129 in July.
Heat rates of gas-fired power plants in the U.S., and notably of combined-cycle units, have decreased 7% between 2006 and 2015 – indicating more efficient generation, because less fuel is needed per kilowatthour. In contrast, heat rates of coal power plants remained stable, according to EIA data, showing no improvement.
Dirty king coal is still on track to surpass natural gas generation for 2017, with total shares of almost 32 % and 31%, respectively, the latest short-term energy outlook from the Energy Information Administration (EIA) shows. That near-tie comes after natural gas generated 34% of the nation’s electricity needs in 2016, with coal finishing at 30%.
Aug 16 - To complete coverage of U.S. crude oil and natural gas production, the US Energy Information Administration (EIA) is expanding the Drilling Productivity Report (DPR) to cover the Anadarko region. This prolific area covers most of the production from the Anadarko Basin in 24 counties in Oklahoma and five counties in Texas.
Aug 15 – The United States’ status as a net exporter is expected to continue for the rest of this year and past 2018 because of growing U.S. natural gas exports to Mexico, declining pipeline imports from Canada, and increasing LNG exports the US Energy Administration (EIA) forecasts.