On April 19, 2012, the Office of Enforcement of the Federal Energy Regulatory Commission (FERC) issued its 2011 State of the Markets Report, assessing the progress and status of the natural gas, electric, and other energy markets over the past year.
In general, the report indicated that 2011 saw record natural gas production and storage inventories, accompanied by the lowest prices in ten years. Particularly, the Marcellus shale production doubled, due in large part to increased interest in production in Pennsylvania and West Virginia. Due to the increase in storage inventories and low domestic prices, the focus on export capacity increased significantly in 2011.
FERC reported that natural gas-fired combined cycle generation continues to displace coal-fired generation. Indeed, this may be a trend that continues as upcoming coal plant outages for emission retrofits are expected to lead to greater use of natural gas-fired plants in the future.
Click here to see a detailed presentation of the report.