Chicken Little has cornered the market on gas price doom and gloom, but the data is inconsistent on whether high gas prices are here to stay.

A near-universal consensus of alarm appears to be emerging concerning North American gas supply adequacy. The steady march upward of spot gas prices and NYMEX futures over the past year confirms this coalescence of market sentiment. Way back in June 2002, you could still buy Rocky Mountain wellhead production for about $1.25/MMBtu, although Eastern U.S. markets had already exceeded $3.00/MMBtu.

Meeting tougher CO₂ emissions limits will require deep pockets.

It's a tough problem that we have less than 22 years to solve. I had the occasion to chat with Dr. Henry R. Linden, Max McGraw Professor of Energy and Power Engineering at the Illinois Institute of Technology, about how the U.S. power industry must face the necessity of sharply reducing its CO₂ emissions while having to increase its summer electric generating capacity from 781 GW in 2000 to 1,174 GW in 2025, according to the Energy Information Administration.

Fossil Fuel Politics

 

 

How the New Congress Might Change the Mix

The 108th Congress will very likely resurrect the comprehensive energy and environmental legislation introduced in the 107th Congress, again raising questions about the effectiveness of market intervention in the area of electric generation.

Green Generation Feels the Squeeze