Baker Institute studies wind, fossil fuel power generation

US wind power generating capacity primarily has displaced natural gas-fired generation so far, yet a recent study by the Baker Institute for Public Policy at Rice University concludes that increased wind-generation capacity is likely to result in more investment in gas-fired generation capacity.

“A number of studies have shown that the expansion of wind has thus far displaced natural gas more than coal,” said a study entitled “Wind Power in the United States: Prospects and Consequences” by Peter R. Hartley, a Rice economics professor and scholar of energy economics for the Baker Institute.

But he sees this as being a short-term situation because gas is a good complement to renewable sources that are highly variable.

“In the longer run, the intermittency of wind and the fact that wind generation satisfies base-load demand more than intermediate or peaking loads should discourage investment in base-load coal and nuclear capacity,” he said.

Wind power generating capacity installed in the US has grown at about 30%/year since 2000, he said. US wind generation currently is concentrated in Texas and the Midwest.

Chesapeake talking about CNG vehicles

In my early days as an oil and gas reporter in Houston years ago, I remember George Mitchell proudly telling me Mitchell Energy converted its pickup trucks to use compressed natural gas.

CNG vehicles never really took off in the US except for some city buses here and there. But Tom Price, senior vice-president of corporate development for Chesapeake Energy Corp., is talking about industry pushing the idea of using CNG for transportation.

During a recent speech to the Interstate Oil & Gas Compact Commission’s annual meeting in Santa Fe, NM, Price called natural gas “the only viable alternative fuel today.” He says US gas producers are “victims of too little demand.”

The most obvious snag that limits widespread use of CNG vehicles in the US is a lack of fueling stations.

The Boston Globe on May 23 reported European drivers can buy CNG vehicles from eight manufacturers. US drivers have only one choice provided they live in one of two states. Individuals in California and New York can buy a CNG Honda Civic. Honda only offers the vehicle in those states for lack of public fueling stations elsewhere.

Toyota Motor Sales USA displayed a CNG Camry Hybrid concept vehicle at the 2008 Los Angeles Auto Show. To convert the stock Camry Hybrid to a CNG vehicle, the gasoline fuel system was replaced with a CNG system including two CNG tanks installed in the spare tire well area.

At IOGCC, Price said CNG is a clean, affordable fuel that can power heavy and light-duty vehicles. In addition, he points out that natural gas is ideal for back-up generation for wind and solar.