“The drop in natural gas prices,” writes Chris Mayer, “may be one of the best things to ever happen to natural gas long term. That’s because natural gas is taking market share from coal. Low prices bring new buyers to the table.
“I was thinking of this after reading a piece about the big natural gas discovery in northern Louisiana. The so-called Haynesville Shale could hold 200 trillion cubic feet of natural gas. That is about 18 years worth of current U.S. oil production. And those estimates could well be too low.
“This adds to a list of huge new fields in recent years in Texas, Arkansas and Pennsylvania. One study says the U.S. has enough natural gas for 100 years of current demand.
“Well, this is one heck of an opportunity. You looking to cut our dependence on foreign oil? Think natural gas. You want to reduce carbon emissions? Think natural gas. In fact, natural gas is setting up to be the fuel of choice over the next several years. It is already cheaper than coal in most parts of the country. Already, of the 372 power plants we’ll build in the U.S., 206 will use natural gas, versus only 31 using coal. Natural gas is going to eat coal’s lunch.”
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