High prices force US utilities to shut oil-fired generation: EIA

Washington (Platts)--14Jun2006

A decline in oil-fired power generation in the first three months of 2006
because of high oil prices and the "relative moderation" of natural gas
prices, has resulted in an 18% increase in petroleum stocks at power plants
since March 2005, the US Energy Information Administration said Wednesday.

In its Electric Power Monthly Summary for March, EIA petroleum stocks
held by the electric power sector totaled 53.5 million barrels at the end of
March, 8.3 million, or 18%, above stocks held at the end of March 2005.
Compared with the September 2005 low point of 36.5 million barrels, the
sector's oil stockpiles were up 47% at the end of March, the agency added.

Total US power generation in March was 0.2% below that in March 2005,
largely because heating degree days were down 7.8% year to year for the month.

Coal-fired generation fell 2.1% from March 2005, while natural gas-fired
generation, benefiting from a decline in gas prices, rose 4.7% compared with
March 2005, EIA said. In contrast, the report said that oil-fired generation
plunged 63.3% from March 2005. In fact, EIA said, oil-fired generation in
March 2006 was 2.37 million MWh, the lowest amount in the agency's monthly
records that date back to January 1973.

Nuclear and hydroelectric both increase in the month, EIA added. Nuclear
generation, which is continuing to experience fewer days lost to planned and
forced maintenance outages than in 2005, was 3.5% above March 2005 levels and
hydro output was 7% higher, the agency said.

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