Friday, August 23, 2013

Shale gas propelled America electricity prices

February 2012, in Boston,Ceramic proppant has a centuries-old North Star (NStar) commercial electric power companies to bring their client's tariff reduction of 34 per cent, from 8.5 cents / kWh lowered to 5.5 cents / kWh. From July 1 onwards, the company's commercial electricity prices will also cut 16%.

According to statistics, the United States now New England (Massachusetts, United States and six other northeastern states) retail electricity price is only half the previous levels, for example, in February,ceramic ball the region of 3 to 4 retail tariff cents / kWh, while in 2006 ~ 2011 over the same period the number of 6-8 cents / kWh. The tariff reduction does not just happen in the eastern United States, the price of electricity in many parts of the United States are going through 2 or 3 cents / kWh decline.

All this changes with the U.S. natural gas markets are closely related.
2011, U.S. natural gas production increased by 8%, reaching a new record of 653.9 billion cubic meters, while increasing the supply of natural gas prices has led to a large extent of the downturn, the summer of 2008 from $ 14 / mmbtu (million British thermal units),frac sand down to the current $ 2.5 / mmbtu. Fuel price changes on electricity prices have a significant impact in the United States, fuel costs accounted for 40% of the total cost of electricity, so the low price of natural gas also means cheaper electricity prices.

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