Natural gas poses a significant threat to coal. This is a result of multiple factors, including the dramatic increase in natural gas production, the rapid development of natural gas power plants, and the impact of governmental regulation on the cost effectiveness of burning coal. While concerns about fracking and price variability could slow the shift toward natural gas, the US Energy Information Administration expects natural gas
to surpass coal as the de facto energy source of the United States (and potentially Utah) by the mid-2030s.
Production Continued improvements to the fracking process since its development in the 1940s have expanded natural gas production capacity in the United States and Utah. The ability to reach known reserves of natural gas that are locked in shale reserves in an economical manner is allowing natural gas companies to provide natural gas at a continually declining price. Expectations are that this will continue as new gas fields are discovered and developed. In 2010, Utah’s natural gas production surpassed its coal production for the first time. The upward trajectory of the state’s natural gas production has continued since 2010, while coal production has continued to decline. Surging production has seen natural gas prices decline, which in turn increases the profitability of natural gas power plants.
IMAGE | US Geological Survey
Despite the rapid growth of the natural gas industry in recent years, ongoing reports of groundwater pollution are calling the environmental benefits of natural gas (when compared to coal mining and combustion) into question. Many jurisdictions in New York State, Ohio, and Texas have voted to ban natural gas production within city limits due to perceived threats of water contamination. Meanwhile, other locales have not experienced negative side effects resulting from natural gas production, raising the question as to whether claims of water contamination are isolated
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