Combined marketed production from the top five natural gas producing states - Texas, Louisiana, Wyoming, Oklahoma, and Colorado – has risen about 7.5% in 2011, according to latest EIA statistics. Abundant domestic supplies and low gas prices reinforce the trend among U.S. power producers of switching from coal to gas.
Transco, a key gas transmission pipeline in the U.S., is preparing to increase gas transport capacity to satisfy rising gas demand for power generation. "Power generation is the driver behind about a third of the volumes in proposed projects in development on our Transco pipeline," Alan Armstrong, chief executive of Williams Partners' said.
February 2012 was an "outlier" in electricity consumption and should be considered as such, Societe Generale analysts, led by Paolo Coghe and Thierry Bros, wrote in the Energy Pulse report issued today. The prolonged and record-breaking cold spell endured by Europe during the first half of February resulted in strong electricity consumption – but just for the month itself.