A recent decision to fully shutter a nuclear power plant in Southern California is putting additional pressure on power prices in that state as it becomes more reliant on natural gas. As environmental concerns continue to push power generation toward natural gas, the leanings of the Obama administration toward allowing the export of liquefied natural gas has the potential to drive prices higher. A recent report shows that more natural gas is being discovered globally as fracking becomes more prevalent, but mass export would still put upward pressure on gas prices.
In the video below, Fool.com contributor Doug Ehrman discusses the energy situation in California and the potential impact of Washington policy on domestic energy costs.
Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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