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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:1,638 Points:248,960 Joined:Sep 2012	Message Posted: Oct 8, 2012 10:16:57 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:13,704 Points:2,113,160 Joined:May 2004	Message Posted: Oct 8, 2012 9:57:04 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:6,963 Points:2,116,640 Joined:May 2006	Message Posted: Oct 8, 2012 5:53:23 AM Ignore remay Report Abuse It always about the big green stuff ($$$$)...
listerone Champion Author Boston Posts:3,375 Points:877,790 Joined:Aug 2008	Message Posted: Oct 7, 2012 8:44:23 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 8:36:04 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 8:28:52 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:6,347 Points:1,301,865 Joined:Sep 2009	Message Posted: Oct 7, 2012 5:53:55 AM Ignore bababooey2 Report Abuse Good
yardslave Champion Author Oklahoma City Posts:2,549 Points:595,830 Joined:Dec 2005	Message Posted: Oct 7, 2012 5:51:07 AM Ignore yardslave Report Abuse Repost?
melvindale Champion Author Michigan Posts:1,438 Points:351,230 Joined:Jun 2011	Message Posted: Oct 7, 2012 12:21:41 AM Ignore melvindale Report Abuse The rich get richer and the rest of us are screwed.
dwh724 Champion Author Pittsburgh Posts:1,531 Points:634,175 Joined:Apr 2011	Message Posted: Oct 6, 2012 11:53:38 PM Ignore dwh724 Report Abuse Okay
jetskijerry Champion Author North Carolina Posts:3,891 Points:771,295 Joined:Mar 2011	Message Posted: Oct 6, 2012 11:50:13 PM Ignore jetskijerry Report Abuse Make up your mind.
jjw0608 Champion Author Milwaukee Posts:6,869 Points:1,700,055 Joined:Nov 2005	Message Posted: Oct 6, 2012 11:47:05 PM Ignore jjw0608 Report Abuse ALL GARBAGE!!!!!!!!!!!!
jtfftj Champion Author New Hampshire Posts:2,176 Points:1,248,180 Joined:Sep 2005	Message Posted: Oct 6, 2012 11:46:26 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:10,569 Points:1,771,920 Joined:Apr 2008	Message Posted: Oct 6, 2012 11:44:55 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:3,080 Points:622,580 Joined:Jan 2011	Message Posted: Oct 6, 2012 11:40:24 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:8,464 Points:1,714,690 Joined:Nov 2007	Message Posted: Oct 6, 2012 11:39:03 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:12,218 Points:2,671,905 Joined:Aug 2004	Message Posted: Oct 6, 2012 11:38:28 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 11:38:12 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 11:37:38 PM Ignore aggietim Report Abuse ok
thinkaboutit Champion Author Colorado Posts:1,071 Points:75,875 Joined:Jul 2005	Message Posted: Oct 6, 2012 11:36:15 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:10,280 Points:2,740,745 Joined:Jan 2004	Message Posted: Oct 6, 2012 11:35:17 PM Ignore cheapertvs Report Abuse Coal makes a comeback!!!
monieet All-Star Author California Posts:959 Points:529,105 Joined:Mar 2011	Message Posted: Oct 6, 2012 11:34:54 PM Ignore monieet Report Abuse OK
10k Champion Author North Carolina Posts:21,249 Points:2,254,020 Joined:May 2006	Message Posted: Oct 6, 2012 11:34:51 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:1,777 Points:1,215,875 Joined:Jun 2007	Message Posted: Oct 6, 2012 11:34:16 PM Ignore pa79th Report Abuse Nah! Too much regulation in coal. Obama killed it for now.
boatfloyd Champion Author Jacksonville Posts:1,718 Points:387,975 Joined:Mar 2012	Message Posted: Oct 6, 2012 11:32:16 PM Ignore boatfloyd Report Abuse More bad air.
RoadKing95 Champion Author San Jose Posts:20,549 Points:3,602,265 Joined:May 2003	Message Posted: Oct 6, 2012 11:30:11 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:1,716 Points:647,070 Joined:Apr 2011	Message Posted: Oct 6, 2012 11:30:06 PM Ignore LostInNY Report Abuse no free lumps on Xmas
langolera Champion Author Akron Posts:1,761 Points:665,980 Joined:Sep 2005	Message Posted: Oct 6, 2012 11:29:00 PM Ignore langolera Report Abuse ok
goldrose1 Champion Author Cleveland Posts:10,936 Points:1,924,605 Joined:Feb 2005	Message Posted: Oct 6, 2012 11:28:53 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 11:26:40 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:4,040 Points:816,865 Joined:Jan 2011	Message Posted: Oct 6, 2012 11:25:32 PM Ignore Badjef Report Abuse liberals at work. Conservatives behind them to clean up the mess.
TFowler513 Champion Author Memphis Posts:3,824 Points:1,413,110 Joined:Mar 2008	Message Posted: Oct 6, 2012 11:24:53 PM Ignore TFowler513 Report Abuse speculators at it again.
yakstar Champion Author Montreal Posts:2,415 Points:479,070 Joined:Jan 2012	Message Posted: Oct 6, 2012 11:24:26 PM Ignore yakstar Report Abuse switch to a cleaner fuel?
Yankee829 Champion Author Dallas Posts:2,201 Points:558,615 Joined:Sep 2010	Message Posted: Oct 6, 2012 11:23:50 PM Ignore Yankee829 Report Abuse Ok
Aviator_Rob Champion Author New York Posts:3,795 Points:412,565 Joined:Mar 2012	Message Posted: Oct 6, 2012 11:23:40 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:1,522 Points:309,380 Joined:Jun 2012	Message Posted: Oct 6, 2012 11:23:28 PM Ignore don10 Report Abuse ok
Zonk Champion Author Michigan Posts:6,481 Points:2,102,015 Joined:Oct 2005	Message Posted: Oct 6, 2012 11:21:15 PM Ignore Zonk Report Abuse Personally, I would stay with Natural Gas.
Aviator_Rob Champion Author New York Posts:3,795 Points:412,565 Joined:Mar 2012	Message Posted: Oct 6, 2012 11:20:14 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 11:19:32 PM Ignore tedjm1 Report Abuse okay
dirt girl Champion Author Twin Cities Posts:35,954 Points:3,072,005 Joined:Oct 2004	Message Posted: Oct 6, 2012 11:18:43 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:3,750 Points:576,210 Joined:Sep 2011	Message Posted: Oct 6, 2012 11:15:21 PM Ignore chuckwthompson Report Abuse The price will always continue to rise.
danol43 Champion Author Modesto Posts:1,697 Points:588,180 Joined:May 2011	Message Posted: Oct 6, 2012 11:13:58 PM Ignore danol43 Report Abuse That's what the market does.
crreed1 Champion Author West Virginia Posts:1,985 Points:2,526,335 Joined:May 2005	Message Posted: Oct 6, 2012 11:13:38 PM Ignore crreed1 Report Abuse back to coal
Rooster922 Champion Author Wilmington Posts:3,788 Points:656,070 Joined:Jan 2009	Message Posted: Oct 6, 2012 11:13:12 PM Ignore Rooster922 Report Abuse Really?
pastorpaulcg Champion Author Virginia Posts:3,615 Points:775,785 Joined:Dec 2010	Message Posted: Oct 6, 2012 11:11:58 PM Ignore pastorpaulcg Report Abuse As demand goes up, price goes up
millerin Champion Author Orlando Posts:2,305 Points:480,390 Joined:Jan 2012	Message Posted: Oct 6, 2012 11:11:44 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 11:11:15 PM Ignore nurdco Report Abuse pay the stove or pay the plug.... YOU STILL PAY
SteelPenny Champion Author Dallas Posts:30,951 Points:2,606,515 Joined:Sep 2005	Message Posted: Oct 6, 2012 11:11:09 PM Ignore SteelPenny Report Abuse Zero'BOY loses his job soon (January 2013)
Ebaz Champion Author Oklahoma City Posts:3,241 Points:714,335 Joined:Apr 2011	Message Posted: Oct 6, 2012 11:11:07 PM Ignore Ebaz Report Abuse Er no not likely
TheSicilian Champion Author Jacksonville Posts:5,374 Points:1,469,525 Joined:Feb 2009	Message Posted: Oct 6, 2012 11:10:36 PM Ignore TheSicilian Report Abuse what next