Billionaire Boys Club Member Forum (BBCMF)

[mick]

forecasting more coal usage in the United States as natural gas prices climb, but what’s interesting here is that we won’t have the coal industry to fall back on for much longer.

Never overlook the fact that not only are our current fleet of coal plants over four decades old, but it also accounts for a huge amount of our electric generating capacity retirements from here on out.

“But what about that pesky oversupply,” you ask?

There’s a few catalysts to consider there.

For starters, natural gas producers in the U.S. have been curtailing production this year in order to stabilize prices, which means they’re drilling less. Couple this lower output with strong demand, and we’re already seeing a dent in natural gas inventories.

The EIA reported that U.S. gas storage inventories were 19% above the five-year average; keep in mind that inventories were 39% above the five-year average at the end of the withdrawal season at the end of March.