November 2004

Trends and Resources

HP Impact: HPImpact: Price of natural gas, emissions cleanup rules drive coal markets

Prices for natural gas will have a profound impact on the markets for US steam coal, according to a new long-range forecast of the coal and electricity industries by Hill & Associates. The forecast al..

Weirauch, Wendy, Hydrocarbon Processing Staff

Prices for natural gas will have a profound impact on the markets for US steam coal, according to a new long-range forecast of the coal and electricity industries by Hill & Associates. The forecast also analyzes the considerable impact that EPA's newly proposed Clean Air Interstate Rule (CAIR) will likely have. "The report clearly shows that there are precipitous threshold values of future natural gas price that cause coal use to drop dramatically at a lower threshold and to start building a new wave of coal-fired generation capacity at a higher one," says Lloyd Kelly, vice president of Hill & Associates. In a counter-intuitive result, the report concludes that the proposed ne

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