Thursday, March 3, 2011

If it ain't one thing, it's another...

Gilda Radner used to say that as Roseanne Roseannadanna on Saturday Night Live.  For natural gas fans, it's our life for the past few years.  With good news comes bad.  The latest? The La Nina weather condition has yielded heavier than normal rainfalls this year in the Pacific Northwest.  This has created a strong supply of water behind dams in the region, meaning that more power than usual will be generated by hydropower in the Northwest, displacing up to 1.5 Bcf per day of natural gas for the period from January to June 2011.  From the article linked above:
"The Bonneville Power Administration, a Portland, Oregon- based government agency that sells power for federally owned hydroelectric plants in the Northwest, is preparing to market hydropower at “very low rates, or for free” to encourage coal and gas-powered plants to reduce output..."
Damn that carbon-free renewable power!  As if natural gas needed more weight to depress its price.

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