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Interfuel competition in the US industrial market

Conference · · Energy Technol. (Wash., D.C.); (United States)
OSTI ID:5636575
The primary focus of this paper is on the short-term interfuel competition that natural gas will face with residual fuel oil in the industrial and power plant markets in a few years. The major conclusion is that burnertip gas prices will increasingly have to compete with lower sulfur residual fuel oils because of low oil prices, upgraded refinery configurations, more balanced gas supplies, and a lack of adequate wellhead exploration incentive. In the longer run, all gas boiler load is potentially switchable to oil or coal. The implications for the gas industry of ongoing competition with residual fuel oil setting the upward ceiling on gas prices are that the use of gas as an industrial and power plant fuel will most likely decline unless more gas can be discovered than current trends indicate. 14 figures.
Research Organization:
Tennessee Gas Transmission, Houston, TX
OSTI ID:
5636575
Report Number(s):
CONF-850301-
Conference Information:
Journal Name: Energy Technol. (Wash., D.C.); (United States) Journal Volume: 12
Country of Publication:
United States
Language:
English