Today New Englanders have reason to feel a little more … European than usual.
in a generation, have been suffering in recent months. To put it in context, $30.5 per mmBtu is the equivalent of paying $180 for a barrel of oil , or 20 cents per kilowatt-hour for electricity. In other words: nuts.
How much are Bostonians getting shafted on natural gas? By comparison, the spot price of gas on the Gulf Coast of Texas and Louisiana yesterday was $5.50 per mmBtu . This price spread is exceptionally wide, nearly unprecedented. But it’s easily explained — by theJust 200 miles to the south, beneath western Pennsylvania, lay the nation’s biggest gas field — the Marcellus shale. From practically nothing 15 years ago, the Marcellus now provides roughly a third of America’s gas supply,.
But very little Marcellus gas flows to New England, because NIMBYs and their politicians have blocked construction of pipelines. Yet the region still relies on cleaner-burning gas to fuel power plants. Over the weekend, when New England was walloped by snow, its power grid was running 37% natural gas, 22% oil, 22% nuclear, 11% renewables, 6% hydro power, and less than 1% coal. (See current mix
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