Natural gas-based electricity generation down compared to same period in 2016

The amount of natural gas used for electricity generation has reached its highest daily level in 2017, exceeding a total of 41 billion billion cubic feet (Bcf) on July 20, according to a recent report from the Houston-based energy data company PointLogic Energy.

The 2017 figure represents a small drop in natural gas energy generation compared to 2016, when power generation reached a record daily high of 42 Bcf on August 11.

According to the U.S. Energy Information Administration (EIA), natural gas-based electricity generation most commonly peaks at the end of July or at the beginning of August due to high demand for air conditioning during that period.

From April 1 to July 25, natural gas electricity generation averaged approximately 27.1 Bcf per day, which was approximately seven percent lower than at the same point during 2016. The decrease, EIA said, could be attributed to higher natural gas prices compared to higher natural gas prices compared to last summer.

Additionally, the Henry Hub natural gas spot price averaged $3.03 per million British thermal units (MMBtu) from April 1 to July 25, compared to $2.27 MMBtu during the same period in 2016. Average prices for natural gas at power plants were $1.02 MMBtu higher during the first half of 2017 compared to the same period in 2016 and coal prices remained the same during both time periods.

In terms of overall energy generation, coal generated approximately 30 percent of U.S. energy in 2016 compared to 34 percent for natural gas. For the first four months of 2017, coal remained at 30 percent of energy generation while natural gas dipped to 28 percent.

EIA recently forecasted that natural gas used for electricity will average approximately $25.9 Bcf/day, or around win percent lower than 2016.