Ten days ago in the Gas Boom Goes Bust post I wrote:
We should expect 2012 to be a year in which we see a variety of knock-on effects:
- Natural gas producers and investors with poor hedge books and too much debt will end up in bankruptcy court.
- Drilling operations will focus on liquids-rich plays only.
- Jobs creation in the natural gas drilling industry will fall well short of expectations.
- Several older coal-fired plants will close.
- New wind power generation will fall — especially if the production tax credit is not extended.
- Natural gas fueled fleet vehicles should become more popular.
These were admittedly easy predictions to make but confirmation is coming in faster than I expected:
- BG slashes shale drilling in weak gas price world
- FirstEnergy to close 3 aging power plants in W.Va.
At this rate, I expect to hear about cancelled wind turbine projects next week and complaints about missing drilling jobs in a month. Bankruptcies by summer?
[... EDIT ... ]
Oops, should have done a little more research. Here are some more links courtesy of a comment from Paul Nash at The Oil Drum:
- Second [Ohio] wind energy project called off
- Controversial [Michigan] Wind Energy projects cancelled
- Tiny bird kills big [Washington] wind project
- New Comstock wind energy project [Nevada] cancelled
- Wind farm project cancelled due to cheap Marcellus gas
- Oct 8, 2013 — Chesapeake has Cut About 10 Percent of Its Workforce
- Oct 8, 2013 – Peter Voser says he regrets Shell’s huge bet on US shale
- Aug 28, 2013 – To cut natural gas costs, Chesapeake pumps up royalty deductions
- Aug 20, 2013 — Shale Grab in US Stalls as Falling Values Repel Buyers
- July 31, 2013 — US wind installations sink to zero in Q2
- July 25, 2013 — UPS Sees 40% Savings by Switching Long-Haul Fleet to Natural Gas
- July 22, 2013 — Miss. Materials adds natural gas to its fleet mix
- July 16, 2013 — Fleets awarded $1.3 million for natural gas, propane vehicles
- July 12, 2013 — AEP to close coal-fired power plant instead of converting
- July 9, 2013 — West Penn Power parent to close 2 coal-fired plants in Western Pennsylvania
- April 15, 2013 – Ohio’s $500 Billion Oil Dream Fades as Utica Turns Gassy
- Apr 10, 2013 — More Financial Worries Coming to Light in Domestic Shale Drilling Industry
- Mar 28, 2013 — US Baker Hughes Gas Rig count Declines to Near 14-Year Low
- Mar 20, 2013 — Los Angeles Halts Using Electricity From Coal Plants
- Jan 30, 2013 — Embattled Chesapeake CEO McClendon to step down
- Jan 10, 2013 — Total chief signals shift from US dry shale gas
- Nov 14, 2012 – Many Coal-Fired Power Plants Poised to Retire, Group Says
- Nov 24, 2012 – TxDOT Switching Truck Fleet To Compressed Natural Gas