| Natural Gas: The Biggest Contributor for US Electricity Generation | |
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How Long Will Consumption Boost Natural Gas Prices? (Continued from Prior Part) US electricity generation
In April 2015, electricity generation from natural gas surged to 31%, according to an SNL Energy report. During the same period, electricity generation from coal was at 30%. In 2010, coal accounted for 44% of US electricity—compared to natural gas at 22%.
Lower natural gas prices, cleaner fuel, and slowing demand for coal led to the drastic change. Switching coal-based plants to natural gas power plants, due to lower natural gas prices, also led to the falling coal consumption. Retiring old coal-based plants to natural gas plants, due to its lower cost and cleaner fuel, supported natural gas consumption. The warm weather estimates also supported natural gas consumption in the near term.
Gas inventories
Despite the low cost of natural gas, the abundance of natural gas played a pivotal role in shaping the natural gas demand from electric power plants. Last week, the EIA (U.S. Energy Information Administration) published that natural gas inventories rose by 91 Bcf (billion cubic feet) to 2,668 Bcf for the week ending July 3, 2015. US natural gas stocks rose for 14 straight weeks. The estimates of rising gas stocks will continue to put downward pressure on natural gas prices.
The recent surge in natural gas prices will benefit oil and gas producers like Memorial Resources (AR), Energy EXXI (EXXI), and Range Resources (RRC). Combined, they account for 4.08% of the Spider Oil and Gas ETF (XOP). These stocks also have a gas production mix that’s greater than 45% of their production portfolio. They also benefit ETFs like the Energy Select Sector SPDR ETF (XLE) and XOP.
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Energy XXI
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EXPLORATEUR |
CODE : EXXI |
ISIN : BMG100821401 |
CUSIP : G10009101 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Energy X X I est une société d’exploration minière et de pétrole basée aux Etats-Unis D'Amerique. Son principal projet en exploration est VERDA RAGEN en USA. Energy X X I est cotée au Royaume-Uni et aux Etats-Unis D'Amerique. Sa capitalisation boursière aujourd'hui est 370,4 millions US$ (302,0 millions €). La valeur de son action a atteint son plus haut niveau récent le 18 septembre 2009 à 9,63 US$, et son plus bas niveau récent le 15 avril 2016 à 0,12 US$. Energy X X I possède 95 459 002 actions en circulation. |