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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Raymond Duray who wrote (41662)	11/18/2003 5:37:42 AM
From: Snowshoe	Read Replies (1) \| Respond to of 74559

Natural gas power plants are cheap to build, but as you point out are subject to the risk of fluctuating fuel prices. In contrast, wind power development is much more capital intensive but the operating costs are well-defined thru stable long-term site leases and financing.

To: Raymond Duray who wrote (41662)	11/18/2003 2:49:18 PM
From: energyplay	Respond to of 74559

The end of Cheap natural gas is also hurting the US Chemical industry, which was built with the expectation of low priced NG as a feedstock. This 'strands' the huge investment in chemical plants, which can't even move overseas, and eliminate the high paying chemical industry jobs. Expensive natural gas also affects the economics of heavy oil in the US and Canada, increasing oil imports. Natural gas is clean, small plants can be built quickly, and the capital cost is very low. There are hidden costs which show up when NG is used excessively. As ususual, no coherent policy on NG for 20 + years...including the Carter administration.