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Issue:

Business

 

Written by:

Carolyn K

 

Date added:

March 13, 2015

 

Level:

University

 

Grade:

B

 

No of pages / words:

3 / 797

 

Was viewed:

9755 times

 

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Essay content:

But, declining industrial demand is more of a long-term issue for a couple of reasons. One, there are long lead times required to build new facilities. Two, there is a significant amount of capacity in the United States, and despite robust gas prices these facilities remain competitive at prices well above historical levels due to transportation costs...
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The biggest problems facing these two fuel sources is the environmental concerns and high up-front capital costs for new plants. Consequently, we don't see coal and nuclear taking meaningful share away from natural gas for the next few years. Like industrial facilities, there are a plethora of natural-gas fired electricity plants, see Calpine's CPNLQ build out in the early part of this decade...
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