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Surprise: The EIA predicts more coal will be used to generate electricity this year than in 2013. But they believe coal’s downtrend will resume in 2015. In 2013, 39.1% of U.S. power was generated by burning coal. In 2014 that will increase to 39.8%, but will fall to 38.7% in 2015, the EIA said. Natural gas fueled 27.4% of U.S. electricity generation in 2013. The EIA says gas will drop to 26.8% in 2014, with a rise to 27.6% in 2015.

Fuel Sources for Electricity - EIA

Here are the EIA’s comments: Higher electricity demand and higher power sector natural gas prices that are more than 21% above their 2013 level contributed to a 3.0% increase in electric power sector coal consumption for the first seven months of this year from the same period last year. EIA projects total coal consumption of 941 MMst in 2014, an increase of 1.7% from last year. Total coal consumption is projected to fall by 2.0% in 2015, as retirements of coal power plants rise in response to the implementation of the Mercury and Air Toxics Standards, electricity sales growth slows to 0.6%, and natural gas prices fall relative to coal prices.

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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.