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But, declining industrial demand is more of a long-term issue for a couple of reasons. One, there are long lead times required to build new facilities. Two, there is a significant amount of capacity in the United States, and despite robust gas prices these facilities remain competitive at prices well above historical levels due to transportation costs.
Natural gas also faces pressure on the electrical generation front from coal and nuclear energy; both are viable long-term substitutes. The biggest problems facing these two fuel sources is the environmental concerns and high up-front capital costs for new plants...
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