Natural Gas development hurting renewable energy investments
Natural gas is getting all the attention from the US and pushing away renewables, mostly due to the rise in popularity of shale gas and fracking in the last few years.
According to the article, there attention of the US is shifting from a more clean energy approach to gas. USA wants to move away from coal and there seems to be a preference now for gas as a medium term solution for energy generation in the country as opposed to other alternatives.
The article reflects that the rise of hydraulic fracturing (fracking) and the discovery and rapid expansion of shale gas explorations seems to be behind this decision.
On the other hand, China, with a large need for energy now and in the near future is more focused on solar or wind-power solutions to the energy issue. In the article it is stated that “Chinese clean-energy companies already raised $1 billion in equity so far this year, 46 percent more than last year and 2 percent more than their U.S. rivals, data compiled by Bloomberg show.”
The publication goes even further stating that “cheap gas blunted the appeal of renewable energy, yet shale resources haven’t stayed as inexpensive as they were. Natural gas fell to a 10-year low in 2012 because drillers looking for oil came up with gas, too, and created a glut. Since then, gas futures have risen 140 percent to $4.588 per million British thermal units; traders anticipate even higher prices next winter. In January, frigid weather and a temporary shortage caused spot prices in New York to spike as high as $99.66 per million British thermal units, data compiled by Bloomberg show.”
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Source: Renewable Energy News Website