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Energy

More Gas Means More Growth

by Jeff Johnson
December 10, 2012 | A version of this story appeared in Volume 90, Issue 50

The flood of natural gas produced from shale deposits and resulting lower gas prices will increase U.S. manufacturing output overall and bulk chemical production by 1.7% annually between 2011 and 2025, says the Energy Information Administration. Natural gas production will also lead to greater gas exports, both by pipeline and as liquefied natural gas, says EIA’s “Annual Energy Outlook 2013,” released last week. Growing gas production will also eat into coal’s share of electricity generation. However, coal is expected to still lead as far out as 2040, when it is forecast to generate 35% of U.S. electricity versus 30% from gas. Because of the shift to higher-efficiency natural gas power plants and greater use of renewable energy sources such as wind and solar, U.S. carbon dioxide emissions are predicted to stay flat at 5% below the 2005 level through 2040, EIA says.

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