This concerns me as I want to buy Exxaro. So I read up a little and hope you guys can add your views and correct my mistakes, as I'm no expert. Points gleaned were: 1. Natural gas is 50% more efficient in converting energy from fuel and is seen as cleaner 2.Natural gas does not trade at a converged global price. LNG currently trades at US$2.00 in the US; but $9.00 in the UK and $15.00 in Japan. 3.It seems oil ($17-29) would be first to cede its primacy to gas, but why coal at $1.50? 4. Supporting past studies, Tom Wigley finds that a shift from coal to gas could actually speed up global warming. 5. The coal industry wants to know why most anti-coal propaganda funding, to the likes of the Sierra Club, come from Chesapeake Energy. The Sierra Club have since changed their support because of fracking. Chesapeake sold much of their NG lemon to the now embarrassed BHP Billiton. 5. Was 2011 really a year NG replaced coal? Based on EA data coal generation dropped 6.1%, whilst total electricity dropped by 17.13% due to mild weather in the US. 6. The drop in price of NG was also due to oversupply due to the mild weather and is surely at its lowest. Comments?
