AI
Tuesday, January 17, 2006 8:37:50 PM
natural gas the main problem
POWER SURGE The nation's long-standing glut of natural gas and electrical capacity, along with the world's spare oil capacity, vanished simultaneously in spring 2000. Prosperity and the Internet are partly responsible. Fueled by cheap energy, the U.S. economy grew 60% since 1986, an astounding 5% in 2000 alone. Gas consumption grew 36% over that period. But it was the demand for electricity-up 5.4% in 1998, an astounding rate for such a large economy- that has had the biggest impact on gas prices. To meet our growing electricity needs, utilities have ordered 180,000 Megawatts of gas-fired power plants to be installed by 2005. It was a logical thing to do: gas is the cheapest, cleanest way to convert fossil fuel to electricity. But if ordering one gas turbine makes perfect sense, ordering 1,000 is a recipe for disaster. No one in the utility industry asked the key question: can we produce enough gas to run all those plants? Many experts think the answer is no.
http://www.oilcrisis.com/gas/primer/
POWER SURGE The nation's long-standing glut of natural gas and electrical capacity, along with the world's spare oil capacity, vanished simultaneously in spring 2000. Prosperity and the Internet are partly responsible. Fueled by cheap energy, the U.S. economy grew 60% since 1986, an astounding 5% in 2000 alone. Gas consumption grew 36% over that period. But it was the demand for electricity-up 5.4% in 1998, an astounding rate for such a large economy- that has had the biggest impact on gas prices. To meet our growing electricity needs, utilities have ordered 180,000 Megawatts of gas-fired power plants to be installed by 2005. It was a logical thing to do: gas is the cheapest, cleanest way to convert fossil fuel to electricity. But if ordering one gas turbine makes perfect sense, ordering 1,000 is a recipe for disaster. No one in the utility industry asked the key question: can we produce enough gas to run all those plants? Many experts think the answer is no.
http://www.oilcrisis.com/gas/primer/
When investing always start with an assumption that the stock market is dead wrong.
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