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Analyst: Low Demand Growth Driving Energy Market Shift

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"The coal industry has taken a beating from cheaper natural gas and environmental regulations, but an overall lack of new demand for electricity is also slicing into the electricity market."

Grounded, Taylor Kuykendall

The coal industry has taken a beating from cheaper natural gas and environmental regulations, but an overall lack of new demand for electricity is also slicing into the electricity market, a new analysis states.

Wood Mackenzie, a company that analyzes world energy and metals markets, recently released "A Lost Decade of Demand Growth." The report highlights radical changes in demand growth projections and how that is "transforming the future of the power industry and complicating strategic and operational choices."

"On one hand, the gas industry has witnessed a dramatic change with the advent of new shale gas resources and their generous supply of low cost natural gas for the power sector," said Prajit Ghosh, senior analyst for North American Power Research at Wood Mackenzie said in an announcement of the report. "The abundance of low cost gas supplies has transformed the supply side of the equation for the power sector, driving tight competition between coal and gas generators, and contributing to premature coal-fired plant retirement decisions.". . .View Full Article


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