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简介:Natural gas is much cleaner than coal. But some energy analysts say an overabundance of the fuel could depress development in even cleaner energy sources like wind and solar power. Above, a rig in Washington, Pa., drills into shale rock to extract natural gas.

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Trevor Houser
Rhodium Group
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Solar subsidies run for several more years, so they're not in that bind, at least not yet. But Trevor Houser, an energy analyst at the Rhodium Group, says these tax credits and other incentives like state renewable standards are key if renewables are to grow and mature during the natural gas glut. Long-term renewable deployment in the U.S., I think, is going to depend primarily on policy. Is there enough concern about environmental consequences to put in place incentives for renewable energy? And that partly depends on how much of a premium people and companies will be willing to pay for cleaner energy. Right now, with natural gas so cheap, that premium is fairly substantial. If those type of prices hang around for another three, four years, then I think you'll definitely see reduced political will for renewable energy deployment. But we don't expect prices that low to stay around that long, because low prices are, in many ways, self-correcting. Gas is so cheap now that companies that produce it are struggling to make a profit. So Houser expects prices to move up, and that will help close the price gap between gas and renewable energy. Even so, there's still a huge way to go before prices and government policies do enough to significantly reduce emissions of the gases that contribute to global warming.