Electricity generation: Gas producers take on coal

There’s a battle going on: shale gas producers, searching for a home for their fuel, say natural gas can take on a larger burden of the electricity-generation market, but the coal lobby isn’t going without a fight.

Coal accounts for about half of U.S. electricity generation, while natural gas takes up about 21 percent, according to the U.S. Department of Energy. Natural gas producers want to see those numbers reflect Texas, where it’s natural gas that accounts for half and coal for about 36 percent.

Critics of the fuel say its price is too volatile – in July of 2007, 2008 and 2009, gas went from about $6.30 per million British thermal units to more than $13 per MMBtu to just more than $3 per MMBtu, respectively – and production couldn’t meet consumption if the fuel’s use is expanded further into generation and transportation.

Both lobbies say they’ve got plenty to go around. Not to be outdone in environmental arguments, the coal lobby says its fuel is as clean as ever, and clean coal technology, which isn’t any further than test mode, could be as good as gas.

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