Low Gas Prices Pushed U.S. to a Record

Natural gas fired generation hit an all time high of 316 gigawatts on July 27^th according to the EIA. The use of natural gas for power generation has been rising for years due to low natural gas prices and the retirement of coal generation has pushed the lower 48 to new records the past two years. The EIA said that natural gas prices at the Henry Hub averaged $1.73 per MMBtu on July 27^th and from June 1 to July 30 Henry Hub prices averaged $1.64/MMBtu. Adjusted for inflation, the average price is the lower for that period since at least 1993. Natural gas generated the largest share of power on July 27^th at 45% followed by coal at 24%. Nuclear generation was 12% and renewables were a 12% share. A number of coal plants have been converted to natural gas or retired due to natural gas prices and government regulations. Between 2011 and 2019 121 coal plants were repurposed to burn other fuels. Most to burn natural gas. Natural gas is the new leading fossil fuel for power generation. Gas-fired combined cycle technology has allowed gas plants to achieve high efficiently ratings.