More Alternative Energy Means Less Natural Gas Demand

wind

If the United States implements a mandate that 15% of our electricity come from renewable sources by 2020, demand for natural gas by the power sector with grow at a considerably slower rate, says merchant banking group Tudor Pickering Holt, via Platts.

Without the renewable mandate, expect natural gas demand to grow from 18 Bcf/d to 28 Bcf/d. With the mandate, expect it to only rise to 21 Bcf/d.

This wouldn’t be a catstrophe for natural gas suppliers, as power suppliers only make up 30% of the demand for US gas right now.

This is already happening in Texas, where wind power is slowing demand for natural gas fired powered.

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