Tuesday, 7 March 2017

SHALE REVOLUTION DRIVES USA ENERGY COSTS TO RECORD LOW

Record-low natural gas prices enabled consumers to devote “less than 4% of their total annual household spending to energy in 2016,the smallest share ever recorded by the US government. The Business Council for Sustainable Energy, in partnership with Bloomberg New Energy, just released Sustainable Energy in America Factbook The report covers the across-the-board benefits for the rise in natural gas use across the United States, with most notable being the fact that American consumers are now spending less of their incomes on energy than ever before in the modern era Exceedingly low natural gas and electricity prices have helped to reduce costs for industrial players, particularly those in energy-intensive sectors. Despite a surge in the value of the dollar over 2015-16, the United States remains among the lowest cost markets for electricity in the world for industrial customers beating out other large countries such as China, India, Mexico and Japan. The report also highlights the fact that low natural gas prices have allowed the U.S. economy to grow at the same time as reducing greenhouse gas emissions — a previously unheard of decoupling trend. One reason, the report notes, is because of increased natural gas use for electricity generation. In fact, natural gas is now the top fuel source for electrical generation, which has driven U.S. CO2 emissions to their lowest levels since 1991

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