The production of shale gas in the United States is skyrocketing. Supply and demand balance of natural gas is eased significantly and the price sagged to one quarter of the last highest level recorded four years ago.
Wider use of natural gas in power generation has been seen due to the drop in natural gas price. The trend was significant in 2012 and electricity generated by natural gas was almost as much as coal in April.
However, most of the current increase in natural gas power generation stems from the rise of its load factor— changes in operation—rather than by expansion of capacity. In other words, fuel choice for power generation can be changed significantly depending on fuel prices.
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