ByGlenn Doty:My first article demonstrated clearly that the crash in the natural gas market (UNG, GASZ, GAZ, UNL, NAGS, BOIL, etc...) experienced in the spring, summer, and fall of 2012 was certain to not be sustained. In the discussions following that article, it became clear that there is some confusion about the relationship between wind power (FAN, PWND) and natural gas (NG) demand in the power sector. There seems to be a widespread belief that higher natural gas prices are good for wind power, and vice versa. Nothing could be further from the truth. The reality is that high wind penetration in some cases will result in higher natural gas prices. By spring of 2013, this is certain to be the case.
Natural Gas is crucial to have as the "balance power" (dispatchable backup) for wind power - which would otherwise be curtailed if there is too much reliance on baseload
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