Coal-fired power is back in vogue. Liquefied-natural-gas terminals are being proposed and even built again. Petroleum commands a price never before seen. If it weren't for the construction boom in the Canadian oil sands, one observer might think he was in a time warp that has dropped him back in the 1970s. In a broad sense, the wheel has fully turned. Natural-gas prices made a step-increase four years ago, pushing gas over the threshold of about $3 per million Btu at which LNG can compete with native natural gas (see graph p. 29). Owners of the three existing U.S. LNG terminals that had been shut down reopened them and began planning expansions. Others prospected for sites to construct new terminals. Today, about 40 LNG import terminals have been proposed on all coasts of North America. One new one is opening for business this month. As in the 1970s, oil prices again suddenly spiked last year. After bottoming out in 1998 at about $10 per barrel, crude oil stayed in its historic range under $30 until spring 2004, when it began a climb that peaked at $56.18 in October. The electric-generation industry was not much affected by that, having largely weaned itself from oil after the 1973 price shock.
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