GLG News by Offshore Drilling Rig Experts

    As the article points out, natural gas-fired generation may be cheaper than coal-fired generation in certain parts of the nation.  The section below discusses some of the items that go into the decision to fuel switch from coal to natural gas.

    The court decision striking down the Clean Air Interstate Rule will have an affect on SO2 allowances and the SO2 premium earned by coal suppliers.

    The decision by the U.S. Court of Appeals for the District of Columbia Circuit striking down the Clean Air Interstate Rule (CAIR) will affect emissions control spending in the immediate term.

    The U.S. Court of Appeals for the District of Columbia Circuit struck down the EPA’s Clean Air Interstate Rule (CAIR) to reduce NOx and SO2 in 28 Eastern United States.  This follows a court decision striking down EPA’s Clean Air Mercury Rule (CAMR).      ...

    Railroads, unlike airlines and trucking firms, are able to pass along the high cost of fuel in  transportation agreements.  Below discusses this and the value to the railroads for coal transportation.

Indian Government provides tax incentives for discovering oil, but does not do the same for the discovery of gas. Differential taxation policy for discovering oil or gas is illogical and will discourage foreign investments in this sector.

    The input costs for utilities to generate electricity are up.  These costs include coal, transportation, natural gas, and power purchases.  There are no guarantees, however, that a regulated utility may pass along these costs as discussed in the commentary section.

    Wind power qualifies for production tax credits.  These production tax credits are set to expire on December 31, 2008 without renewal by Congress and the President.

    Bituminous coal prices have soared over 100% in the last year.  This is obviously bad news to electric consumers dependent upon utilities with a large exposure to coal-fired generation.  The run-up in coal prices could be a benefit to some utilities.

    As the article correctly points out, capital costs to build a new power plant have risen considerably since 2000; coal plants included.  It is not just the up-front capital costs that have affected decisions to build new coal plants as discussed in the commentary sectio...