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Recent Rally in Natural Gas Prices Could See Utilities Switch Back to Cheaper Coal

Before It's News -- The recent rally in natural gas prices could prove beneficial to coal miners. The spread between the NYMEX Central Appalachian coal and Henry Hub natural gas futures on Thursday was the widest it has been in over a year. The gap on Thursday reached $1.25 per million British thermal units (mmBtu) according to data from Reuters. The cost of transporting Eastern coal is roughly $1 per mmBtu, so when the discount is above $1 per mmBtu it becomes more cost effective for utilities to burn coal instead of natural gas. Since April, natural gas has rebounded to $3.28 per mmBtu from $1.902, while coal has dropped to $2.13 per mmBtu from $2.03, according to Reuters.

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Submitted Oct 06, 2012 By: NOTSOGRN

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teenitup Champion Author Houston Posts:1,652 Points:250,120 Joined:Sep 2012	Message Posted: Oct 8, 2012 8:16:57 PM Ignore teenitup Report Abuse This is why the Obama administration's (using the EPA) attacks on coal and existing coal plants are so shortsighted. Coal's abundance alone is a threat to threat to the green agenda. Fracking is a threat to the green agenda as it has brought on an oversupply of natural gas and the whole "threat" of cataclysmic, end of all our water supply, earthquakes, breast cancer, etc. scenarios from the EPA and 'environmentalists'. There's simply no indication that natural gas prices would stay at these near historic lows for long. Natural gas should easily triple from this years earlier lows of $2 per MCF, just an increase to $4 per MCF would certainly bring coal right back into the picture.
DerHahn Champion Author Illinois Posts:13,710 Points:2,114,135 Joined:May 2004	Message Posted: Oct 8, 2012 7:57:04 AM Ignore DerHahn Report Abuse the "rally" in nat gas prices was totally expected. t-boone pickens wouldn't be pushing it if he wasn't thinking about making money on it.
remay Champion Author Houston Posts:6,968 Points:2,117,615 Joined:May 2006	Message Posted: Oct 8, 2012 3:53:23 AM Ignore remay Report Abuse It always about the big green stuff ($$$$)...
listerone Champion Author Boston Posts:3,380 Points:878,765 Joined:Aug 2008	Message Posted: Oct 7, 2012 6:44:23 AM Ignore listerone Report Abuse We have lots of coal which is excellent for generating electricity.We should use it...along with gas,oil,nuclear,hydroelectric,etc.
Martinman Champion Author Mississippi Posts:14,739 Points:2,093,830 Joined:Sep 2005	Message Posted: Oct 7, 2012 6:36:04 AM Ignore Martinman Report Abuse Amazing that websites such as this are allowed to remain. Here are some of the other "Top Stories" high-lighted by "Before It's News" on its main splash page: - Shocking FEMA Bill HR6566: Ordering National Preparation For Mass Death, Video - Prophetic: The Lord God warns many countries now! - Early On Line Poll Shows Ron Paul (write in) Three Percent Ahead of Romney - Worth Following... - Clinton Assassination Threat? Santilli Contacts Russian Embassy For Protection - Hollow Earth Strange Photos - FEMA To Mobilize For “Mass Fatality Planning” - 100% Proof Of Alien Civilizations Exist On The Moon - NASA Lies Uncovered In Colour - The ‘Surprise’ Job Report This Morning Spell Serious Trouble For Stock Market - Moon Object Is 200 Miles Long! -The Next Big Thing Is Already Here, SF Yep - that's "credible" reporting there... . [Edited by: Martinman at 10/7/2012 9:36:51 AM EST]
Martinman Champion Author Mississippi Posts:14,739 Points:2,093,830 Joined:Sep 2005	Message Posted: Oct 7, 2012 6:28:52 AM Ignore Martinman Report Abuse Article is poorly written. Isn't a change in "cost" from $2.03 per mmBTU to $2.13 per mmBTU an INCREASE, not a "drop" as reported? Second, the article is quite misleading (surprize!) Even for existing electric generating plants, natural gas fired units are twice as efficient as coal-fired units. Efficiency generally ranges from 28% to 31% for coal-fired, 60% to 61+% for natural gas fired generating units (electricity generated per BTU burned). Thus coal would not just need to reach parity, natural gas would have to become TWICE as expensive as coal for the cost-basis to reach parity. Third, the story assumes that while natural gas futures prices are volatile, that coal futures prices are not. Fourth, coal-fired units take significantly longer to bring online (up to 4 days compared to hours for natural gas). Fifth, coal-fired units required more workers per mega-watt of power generation to operate. Then there is the cost of settling ponds, ash removal, and other post-production costs that burning natural gas simply does not have. [Edited by: Martinman at 10/7/2012 9:33:41 AM EST]
bababooey2 Champion Author Hartford Posts:6,352 Points:1,302,840 Joined:Sep 2009	Message Posted: Oct 7, 2012 3:53:55 AM Ignore bababooey2 Report Abuse Good
yardslave Champion Author Oklahoma City Posts:2,555 Points:596,805 Joined:Dec 2005	Message Posted: Oct 7, 2012 3:51:07 AM Ignore yardslave Report Abuse Repost?
melvindale Champion Author Michigan Posts:1,438 Points:351,230 Joined:Jun 2011	Message Posted: Oct 6, 2012 10:21:41 PM Ignore melvindale Report Abuse The rich get richer and the rest of us are screwed.
dwh724 Champion Author Pittsburgh Posts:1,536 Points:635,150 Joined:Apr 2011	Message Posted: Oct 6, 2012 9:53:38 PM Ignore dwh724 Report Abuse Okay
jetskijerry Champion Author North Carolina Posts:3,901 Points:773,245 Joined:Mar 2011	Message Posted: Oct 6, 2012 9:50:13 PM Ignore jetskijerry Report Abuse Make up your mind.
jjw0608 Champion Author Milwaukee Posts:6,874 Points:1,701,030 Joined:Nov 2005	Message Posted: Oct 6, 2012 9:47:05 PM Ignore jjw0608 Report Abuse ALL GARBAGE!!!!!!!!!!!!
jtfftj Champion Author New Hampshire Posts:2,180 Points:1,249,135 Joined:Sep 2005	Message Posted: Oct 6, 2012 9:46:26 PM Ignore jtfftj Report Abuse Re: Boatmen: So were self-serve gas stations. Retailers would save labor and pass the savings on to us. Didn't happen. Didn't have to happen in New Jersey because they didn't buy in to the argument and still have mandated full serve. Good job, Gov. Christie, and all you who support it.
clermont40miles Champion Author Cincinnati Posts:10,576 Points:1,772,940 Joined:Apr 2008	Message Posted: Oct 6, 2012 9:44:55 PM Ignore clermont40miles Report Abuse Good to see coal coming back. Also good to see NG being affordable. Will take some time for the supply and demand to even out. Are speculators artificially boosting prices on NG as they do daily on gasoline, diesel and crude? We MUST stop the commodity market from being used as a stock market with paper traders causing price changes at whim, having nothing to do with market realities. .
boatmen Champion Author New York Posts:3,085 Points:622,805 Joined:Jan 2011	Message Posted: Oct 6, 2012 9:40:24 PM Ignore boatmen Report Abuse Like everything else When enough buy in price goes up remember ATM cards were to save money
SHEP20715 Champion Author Maryland Posts:8,468 Points:1,714,845 Joined:Nov 2007	Message Posted: Oct 6, 2012 9:39:03 PM Ignore SHEP20715 Report Abuse Steelpenny...You can't even look forward to 2016, after the actions of the Regressives, trying to carry the country back 100 years, it will be a cold day in hell before they get anywhere near the White House
WilW Champion Author Atlanta Posts:12,223 Points:2,672,880 Joined:Aug 2004	Message Posted: Oct 6, 2012 9:38:28 PM Ignore WilW Report Abuse Glad I locked in my price for the winter.
chyguy3 Champion Author Wyoming Posts:2,855 Points:859,540 Joined:Sep 2006	Message Posted: Oct 6, 2012 9:38:12 PM Ignore chyguy3 Report Abuse No way. Too little and won't last.
aggietim Champion Author Fort Worth Posts:1,756 Points:693,325 Joined:Oct 2008	Message Posted: Oct 6, 2012 9:37:38 PM Ignore aggietim Report Abuse ok
thinkaboutit Champion Author Colorado Posts:1,071 Points:75,875 Joined:Jul 2005	Message Posted: Oct 6, 2012 9:36:15 PM Ignore thinkaboutit Report Abuse Paragon stock could rise or fall in the future. Nobody can predict individual developments for sure.
cheapertvs Champion Author Richmond Posts:10,285 Points:2,741,720 Joined:Jan 2004	Message Posted: Oct 6, 2012 9:35:17 PM Ignore cheapertvs Report Abuse Coal makes a comeback!!!
monieet All-Star Author California Posts:964 Points:530,080 Joined:Mar 2011	Message Posted: Oct 6, 2012 9:34:54 PM Ignore monieet Report Abuse OK
10k Champion Author North Carolina Posts:21,259 Points:2,254,995 Joined:May 2006	Message Posted: Oct 6, 2012 9:34:51 PM Ignore 10k Report Abuse steel penny: and my family is doing their part to help him out the door..we have 19 registered voters, of which 14 are dems, 4 are repubs, and i am the lone independent..we will vote 19-0 to remove zero boy ;)
pa79th Champion Author Pennsylvania Posts:1,787 Points:1,217,075 Joined:Jun 2007	Message Posted: Oct 6, 2012 9:34:16 PM Ignore pa79th Report Abuse Nah! Too much regulation in coal. Obama killed it for now.
boatfloyd Champion Author Jacksonville Posts:1,723 Points:388,950 Joined:Mar 2012	Message Posted: Oct 6, 2012 9:32:16 PM Ignore boatfloyd Report Abuse More bad air.
RoadKing95 Champion Author San Jose Posts:20,555 Points:3,603,240 Joined:May 2003	Message Posted: Oct 6, 2012 9:30:11 PM Ignore RoadKing95 Report Abuse The purpose of this "article" is nothing more than an advertisement for you to buy coal futures from paragon. If you're dumb enough to believe it jump in and buy all you can. It simply is not going to happen. You're all being duped. But then that's why they put it in a right wing blog (they know the audience is gullible). [Edited by: RoadKing95 at 10/7/2012 12:33:46 AM EST]
LostInNY Champion Author New York Posts:1,721 Points:648,045 Joined:Apr 2011	Message Posted: Oct 6, 2012 9:30:06 PM Ignore LostInNY Report Abuse no free lumps on Xmas
langolera Champion Author Akron Posts:1,766 Points:666,955 Joined:Sep 2005	Message Posted: Oct 6, 2012 9:29:00 PM Ignore langolera Report Abuse ok
goldrose1 Champion Author Cleveland Posts:10,941 Points:1,925,580 Joined:Feb 2005	Message Posted: Oct 6, 2012 9:28:53 PM Ignore goldrose1 Report Abuse speculators...
defiancegasman Champion Author Ohio Posts:7,080 Points:1,323,260 Joined:May 2006	Message Posted: Oct 6, 2012 9:26:40 PM Ignore defiancegasman Report Abuse " while coal has dropped to $2.13 per mmBtu from $2.03, " Good Article, full of usefull info like a rise is a drop. Figures don't lie, BUT LIARS FIGURE!!!
Badjef Champion Author Florida Posts:4,045 Points:817,840 Joined:Jan 2011	Message Posted: Oct 6, 2012 9:25:32 PM Ignore Badjef Report Abuse liberals at work. Conservatives behind them to clean up the mess.
TFowler513 Champion Author Memphis Posts:3,824 Points:1,413,985 Joined:Mar 2008	Message Posted: Oct 6, 2012 9:24:53 PM Ignore TFowler513 Report Abuse speculators at it again.
yakstar Champion Author Montreal Posts:2,420 Points:479,645 Joined:Jan 2012	Message Posted: Oct 6, 2012 9:24:26 PM Ignore yakstar Report Abuse switch to a cleaner fuel?
Yankee829 Champion Author Dallas Posts:2,206 Points:559,590 Joined:Sep 2010	Message Posted: Oct 6, 2012 9:23:50 PM Ignore Yankee829 Report Abuse Ok
Aviator_Rob Champion Author New York Posts:3,800 Points:414,090 Joined:Mar 2012	Message Posted: Oct 6, 2012 9:23:40 PM Ignore Aviator_Rob Report Abuse Do you actually hear yourself sometimes, @judgemobile? We don't import oil or natural gas to fuel our powerplants. All of that is produced domestically. Retrain those coal miners and ship them to the Dakotas where they can be put to use drilling oil and gas wells.
don10 Champion Author North Carolina Posts:1,527 Points:310,355 Joined:Jun 2012	Message Posted: Oct 6, 2012 9:23:28 PM Ignore don10 Report Abuse ok
Zonk Champion Author Michigan Posts:6,486 Points:2,102,990 Joined:Oct 2005	Message Posted: Oct 6, 2012 9:21:15 PM Ignore Zonk Report Abuse Personally, I would stay with Natural Gas.
Aviator_Rob Champion Author New York Posts:3,800 Points:414,090 Joined:Mar 2012	Message Posted: Oct 6, 2012 9:20:14 PM Ignore Aviator_Rob Report Abuse So, @SteelPenny, what are you gonna do if your prediction doesn't come true? It's a long way to 2016.
tedjm1 Champion Author New York Posts:5,609 Points:800,300 Joined:Dec 2006	Message Posted: Oct 6, 2012 9:19:32 PM Ignore tedjm1 Report Abuse okay
dirt girl Champion Author Twin Cities Posts:35,960 Points:3,072,980 Joined:Oct 2004	Message Posted: Oct 6, 2012 9:18:43 PM Ignore dirt girl Report Abuse Rising price of natural gas is not good news for people who heat their homes with it.
chuckwthompson Champion Author Charlotte Posts:3,755 Points:577,185 Joined:Sep 2011	Message Posted: Oct 6, 2012 9:15:21 PM Ignore chuckwthompson Report Abuse The price will always continue to rise.
danol43 Champion Author Modesto Posts:1,701 Points:589,235 Joined:May 2011	Message Posted: Oct 6, 2012 9:13:58 PM Ignore danol43 Report Abuse That's what the market does.
crreed1 Champion Author West Virginia Posts:1,990 Points:2,527,310 Joined:May 2005	Message Posted: Oct 6, 2012 9:13:38 PM Ignore crreed1 Report Abuse back to coal
Rooster922 Champion Author Wilmington Posts:3,793 Points:657,045 Joined:Jan 2009	Message Posted: Oct 6, 2012 9:13:12 PM Ignore Rooster922 Report Abuse Really?
pastorpaulcg Champion Author Virginia Posts:3,615 Points:775,785 Joined:Dec 2010	Message Posted: Oct 6, 2012 9:11:58 PM Ignore pastorpaulcg Report Abuse As demand goes up, price goes up
millerin Champion Author Orlando Posts:2,310 Points:481,365 Joined:Jan 2012	Message Posted: Oct 6, 2012 9:11:44 PM Ignore millerin Report Abuse hmm...
nurdco Champion Author Colorado Springs Posts:9,231 Points:1,694,410 Joined:Apr 2008	Message Posted: Oct 6, 2012 9:11:15 PM Ignore nurdco Report Abuse pay the stove or pay the plug.... YOU STILL PAY
SteelPenny Champion Author Dallas Posts:30,963 Points:2,607,490 Joined:Sep 2005	Message Posted: Oct 6, 2012 9:11:09 PM Ignore SteelPenny Report Abuse Zero'BOY loses his job soon (January 2013)
Ebaz Champion Author Oklahoma City Posts:3,246 Points:715,310 Joined:Apr 2011	Message Posted: Oct 6, 2012 9:11:07 PM Ignore Ebaz Report Abuse Er no not likely
TheSicilian Champion Author Jacksonville Posts:5,384 Points:1,470,725 Joined:Feb 2009	Message Posted: Oct 6, 2012 9:10:36 PM Ignore TheSicilian Report Abuse what next