Industrial Potential for Substitution of Electricity for Oil and Natural Gas

Abstract

The prospect of natural gas decontrol as well as uncertainties of gas and other fuel supplies have aroused interest in electric processes among industrial officials. Where there is ample electric power supply at reasonable cost, an opportunity exists for selected industry groups to make cost-effective conversions to electric processes. Technological advances in high-efficiency electric process equipment increase the potential for energy substitution. This, in turn, is changing the market outlook for electric utilities.

By and large, energy substitution decisions will be based on their economic and technical feasibility. In view of projections of the long-term price escalations of oil and natural gas, the economic of choosing electricity are looking good at present.

This paper will describe certain industrial applications where the substitution of electricity for oil and natural gas appears economically advantageous.