Monday, June 11, 2012

Power producers shifting away from coal

As discussed back in March, the US coal sector is facing severe headwinds as the power industry shifts to natural gas. That trend has now become quite evident based on the latest data from EIA. Net generation using coal has declined sharply on an absolute basis.

Source: EIA

And on a relative basis coal is becoming a smaller component of the net. Given the US natural gas supply fundamentals, this trend is likely to continue.

Source: EIA
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