Power Update

Is the Gas Shortage Short Term?

The future of coal in the U.S. depends on the price and availability of natural gas. There is considerable controversy on this subject. One possibility is that gas will cease to be an option for baseload power generation. The other possibility is the one included in the 2004 EIA forecast which shows gas being the fuel of choice for new power plants built after 2010. However, this is the same group that failed to predict the present high prices.

Analysis

United States

EIA provided its annual forecast in early 2004 with projections through 2025 for the U.S. We are providing the details of these forecasts in this section. However, the McIlvaine forecasts (as reflected under “Forecast” differ somewhat from the EIA. McIlvaine believes that substantial additions to coal-fired plants will be made in the 2005-2010 period. EIA does not reflect these additions even though a number of plants are actually in construction.

World Forecast

FIGURE :  Coal-Fired Plant Capacity (MW)

COUNTRY 2008 2009

2010

2011 2012
  Net Additions In Operation Retirements New Construction Net Additions In Operation Retirements New Construction Net Additions In Operation Retirements New Constr. Net Additions In Operation Retirements New Constr. Net Additions
United States 300 330,240   2,500 2,500 332,740   5,000 5,000 337,740   5,000 5,000 342,740   6,000 6,000
Canada 1,350 21,510   1,000 1,000 22,510   1,000 1,000 23,510   1,000 1,000 24,510   1,000 1,000
Mexico 0 4,050     0 4,050   500 500 4,550   500 500 5,050   500 500

 

Revenues

INDUSTRY AND SUBJECT TOTALS

Industry:
Subject:

($ Millions)

World Region 2001 2002 2003 2004 2005 2006 2007 2008
Africa

 11.07

 0.00

 0.00

 4.75

 1.06

 1.06

 2.12

 53.86

CIS

 0.00

 0.00

 0.00

 2.12

 2.12

 2.12

 13.74

 0.00

East Asia

 146.95

 187.45

 267.45

 294.55

 272.62

 256.73

 246.13

 225.01

Eastern Europe

 18.59

 27.23

 17.53

 12.68

 13.74

 13.74

 27.48

 12.68