Bloomberg Government has published The Twilight of Coal Power?, an assessment of how EPA’s new greenhouse gas rules might affect coal-fired power plants. The report concludes that although coal will remain in the energy mix for decades due to existing plants, the EPA’s new rule will effectively ban new coal plants. The new rules require that fossil plants not exceed 1,000 lbs. of CO₂/MWh.

Scott Segal, executive director of the Electric Reliability Coordinating Council, which represents utility interests, warns that EPA’s rule will disrupt utility hedging by eliminating coal from the fuel mix and “depriving the market of its flexibility.”… [read more]

The Bureau of Land Management (BLM), an arm of the Department of the Interior (DOI), last updated its hydraulic fracturing (“fracking”) rules in 1988, before many current technologies and techniques were adopted. Now, after more than 20 years, BLM has released a set of proposed changes to the regulations, including a requirement for disclosure of the chemicals used in fracking on federal lands, and standards for gas well construction.

Currently, most fracking occurs on private lands, and is subject only to state regulations. A recent report found that only 5% of active shale wells in the past… [read more]

A new report from the Energy Security Leadership Council, a group including business leaders and retired military officials, warns that U.S. energy policy advocates are conflating “energy independence” with “energy security.”  Relying on increased domestic production oil and natural gas is misguided, they argue, and the country should instead seek to decrease reliance on all oil.

The report acknowledges that the recent boom in energy production in the U.S. will have positive economic impacts, and calls for the government to make federal lands available for oil and gas development. However, the authors state, “as long as the United States… [read more]

In response to a request from the Senate Committee on Energy and Natural Resources, the Energy Information Administration (EIA) has released its Analysis of Impacts of the Clean Energy Standard Act of 2012. Committee chairman Jeff Bingaman (D-NM), introduced the Act, which aims to increase low-carbon power generation in the U.S. by more than 80% by 2035 utilizing a market-based system of tradable energy credits.

Beginning in 2015, utilities would be required to sell an increasing percentage of energy from clean energy sources. Utilities could generate electricity from clean sources to meet the Act’s requirements, or could purchase… [read more]

Domestic natural gas production continues to expand, while natural gas spot prices are at historic lows. Many utilities are responding to these changing market dynamics by building gas plants or “fuel-switching” existing power plants from more expensive fuels to gas. As a result, coal generation continues to fall. Due in part to price competition with natural gas, some Congressional “clean energy” subsidies may not be renewed.

EIA projections suggest that domestic production will continue to increase, and that natural gas prices faced by electric utilities will remain below $7.00/mBtu, through 2035. [Source: EIA]

What does near- to… [read more]