Prospects for a surge in electricity demand for natural gas are clouded by Obama administration regulatory and fiscal initiatives, contends the RigData News & Analysis team, writing in RigData’s RADAR Report.

EIA contends fossil energy will continue to account for roughly two-thirds of the US fuel mix for generating electric power by 2040, but with natural gas narrowing the gap with coal. Will enough domestic gas supply be available to replace coal to meet US climate change goals? By all accounts, the underlying resource will suffice, but politics could constrain that availability.

President Obama has proposed a $10/bbl tax on US oil production (associated gas sources 8% of US gas supply) and now has joined with Canadian Prime Minister Trudeau to call for cutting methane emissions from oil and gas operations by 40%–45% below 2012 levels by 2025.

Hoping to continue Obama’s environmental legacy is Democrat presidential front-runner Hillary Clinton, who this week said she would shut down fracing in the US almost everywhere. How these goals jibe with replacing coal with natgas in power generation is inexplicable.

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