Shale gas shows continued promise for power generation
Increased domestic reserves, lower prices and fewer emissions than coal-fired generation are factors that are moving natural gas-fired plants up in Duke Energy’s dispatch order. Access to large volumes of shale gas should provide the United States with more domestic natural gas than the country consumes for many years to come, according to the U.S. Energy Information Administration (EIA).
Natural gas-fired power plants emit about half as much carbon dioxide as coal-fired plants, and fewer nitrogen oxides and sulfur dioxide emissions as well. Combined-cycle plants have operational flexibility — they can start up and shut down quickly in response to changing demand on the electric system. And their use of heat released from natural gas combustion to produce additional power makes them highly efficient.
Long-term projections for natural gas power production are promising. However, considering the historic volatility of natural gas prices (and other commodities), we need a well-balanced approach to our generation mix to ensure continued reliability and cost control.
Although the EIA predicts shale gas will provide approximately half of U.S. natural gas resources by 2035, others are concerned about the amount of water and chemicals required in the hydraulic fracturing (“fracking”) process, and what that might mean for the environment and potential government regulations in the future.
Shale gas has been termed a “game changer” for the U.S. due to the potential opportunities low-cost natural gas can provide for our nation. Yet the speed at which shale gas has developed and the uncertainty about the implications of fracking call for a cautious approach.
Duke Energy continues to monitor developments related to shale gas production, and we will incorporate those findings into our long-term generation and fuel plans.