Shale Revolution Reducing Reliance on Coal and Reducing Carbon Emissions

One of the benefits of the Shale Revolution is that Natural Gas is gradually replacing Coal as an energy source to generate Electricity.

Compared to coal, natural gas produces only about half as much carbon dioxide per unit of electricity produced (1.21 pounds of CO2 per kWh for natural gas vs. 2.10 pounds for coal).

The chart above shows that Coal’s share of Electric Power generation has decreased from 57% in 1985 to 34% so far this year through April.

While the share of Electricity generated form Natural Gas has tripled, increasing from less than 10% in the mid-1980s to around 29% today.

Fracking Is Helping To Reduce CO2 Emissions...

Coal, Not Oil Dominates China's Energy Consumption...

Coal powers the Chinese economy.

The country is the world’s largest coal consumer, gobbling up nearly 50% of the world’s coal consumption in 2009.

Coal accounted for 71% of China’s energy in 2008—more than 3 times the United States’ share. By contrast, oil accounts for only 19% of China's total energy consumption

The Electricity Council estimates that the country’s coal demand will reach 1.92 billion tons in 2011, up nearly +10% from 2010.

China hasn’t always been such a glutton for coal. In fact, coal consumption actually declined from 1996 to 2000. However, consumption has shot up +180% since then and China accounted for 80% of demand growth between 1990 and 2010.

This is because demand for electricity exploded over that time.

China’s rapid urbanization and rising middle class has led to an exponential number of new refrigerators, air conditioners and other appliances in homes. China sits atop the third-largest store of recoverable coal reserves, behind the U.S. and Russia.