Low gas prices set to drive decline in coal generation

U.S. natural gas production is expected to reach the highest year-over-year increase in 2018, according to the Energy Information Administration’s new Short-term Energy Outlook (STEO). With more gas supplies, the EIA expects gas prices in 2018 and 2019 to sink below 2017 prices, making it a more economic and attractive fuel for power generation.The EIA, an arm of the Department of Energy, expects gas-fired plants to generate 34% of the electricity in the United States in 2019 while coal-fired generation falls to 28%.