The domestic reserves of natural gas should reduce the commodity’s price volatility and propel it into being more than just a renewable bridge fuel for decades to come, proponents of the natural gas told attendees at Platts 27th Global Power Markets conference.
Natural gas “is a gift that will keep on giving for decades in the U.S.,” and power producers should prepare to compete in an environment where gas is at or below $5 per one million British thermal unit for the foreseeable future, said Aubrey McClendon, chairman of the board and ceo of Chesapeake Energy Corp.
Natural gas is a “modern American treasure” that more than half the states produce, he told attendees in his keynote address. “If you are in a position to take advantage of what Mother Nature has given you, then I think you should take advantage of it,” McClendon said.
Jack Fusco, president and ceo of gas-fired player Calpine, urged the industry to seize the opportunity to build a power fleet that can exist in a low gas-price environment. “I get tired of people saying gas prices are too low—it’s an opportunity,” he said.
Perry Cole, managing director at Energy Capital Partners echoed that he believes “that gas prices will stay low for a long time” and that investors should build merchant or short-term contracted fleets that are competitive in the coming years.