Insider Secrets

Insider Secrets

Learn how the PROs are making money from the oil and energy market.

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Energy / Coal

  • This Big Coal Buyer Could Drive Coal Prices Even Lower

    The coal market is in a dark place. With a 10 percent slide in prices during the last few months of 2015 having this week triggered the bankruptcy of America’s second-largest miner, Arch Coal. And it appears some of the world’s biggest insiders in the business think the market could go even lower. That was the message coming out of Japan this week. Where Platts reports that major coal buyer Tokyo Electric Power Co. (Tepco) has decided to keep its options open on pricing supply for the coming year. Sources said that Tepco has opted for floating price contracts with…

  • How Coal Industry Can Attract New Investors

    Tobacco, alcohol, and gambling stocks are often called “sin” stocks because of the nature of their industry. These companies have traditionally had considerably less coverage from analysts and the companies themselves on average have lower valuations than comparable non-sin stocks. Now coal miners may be getting ready to be forced into the category at arguably one of the most challenging times in the industry’s history. This creates an opportunity for both coal companies and investors. Coal miners are increasingly becoming a target for social activists that argue the firms contribute too much to climate change and are detrimental to society.…

  • The Golden Age Of Coal In China Is Over

    China’s coal consumption may have peaked in 2013, and with it, so have the coal industry’s fortunes. A new report from the International Energy Agency (IEA) finds that preliminary data suggests that China’s coal consumption in 2015 is lower than 2013 levels. Slower economic growth, lower energy-intensity of growth, and a campaign to reduce air pollution have severely dented the prospects for coal in China, the report finds. China consumes half of the world’s coal, so what happens in China tends to dictate what happens to coal markets around the world. China tripled its coal consumption since 2000, and it…

  • 5 Reasons Why Coal Is Being Killed Off

    Just over a year ago, Australian Prime Minister Tony Abbott stood in front of a coal mine and declared that “coal is good for humanity” and will be “the world’s main energy source for decades to come.” “Coal is good for humanity, coal is good for prosperity, coal is an essential part of our economic future, here in Australia, and right around the world,” said the former PM, opening the $3.9 billion BHP Billiton Mitsubishi Alliance (BMA) Caval Ridge coal mine, in central Queensland. Being a major coal exporter and consumer, it was Abbott's job to promote an industry that…

  • Coal And NatGas Fight It Out For Market Share In Asia

    Natural gas is indeed having a tough time. In Asia, the outlook for natural gas does not look good, as Southeast Asia, and India in particular, are now increasing their coal consumption for power generation, which could limit the growth in demand for gas. India has historically relied on coal as its primary energy generation source. Being the cheapest fuel available, consumption of coal is set to increase in India, where it is currently satisfying close to 45 percent of the nation’s energy demands. Although demand for coal has declined in China (thanks to its economic slowdown and increased efforts…

  • U.S. And Japan Agree To Cut Financial Support For Coal Exports

    It is a dark times for coal producers around the world. And the bad news keeps on coming. The latest is an agreement between the U.S. and Japan to slash financial support for coal exports, a deal reportedly made with an eye towards the Paris climate talks set to take place in December. The U.S. and Japan have long supported overseas buyers of coal through low-cost finance, as a means to boost their own exports of both coal and coal-based technology. In an effort to cut down on greenhouse gas emissions from coal – one of the largest sources of…

  • Iron And Coal Could Have More Suffering Ahead

    It’s no secret that it is a hard time to be in the coal business. First, coal miners have been hit hard over the last decade by the increasing numbers of power plants switching from using coal to using natural gas for power generation. Then over the last year, as the magnitude of China’s slowdown has become more apparent, steel prices have plummeted. By virtually all reliable metrics, Chinese steel mills are sitting on vast amounts of inventory and there is a serious supply glut in that market. As a result, metallurgical coal prices used in producing steel via coke…

  • This Project Could Signal A Turnaround For The Coal Industry

    Investment opportunities are created by solving people's problems. And a major energy development this week could solve one of the biggest issues going in the commodities sector.That's happening in Botswana, where developers unveiled one of the largest projects ever seen in an obscure but growing segment of the energy industry.Coal-to-liquids.Related: Policy, Coincidence Or Conspiracy: What’s Really Holding Oil Prices Down?Project backers in Botswana said they will go ahead with a massive investment in coal-to-liquids operations, projecting a total budget of $4.2 billion for a coal-to-liquids plant capable of producing 20,000 barrels of petroleum fuel per day -- along with a subsidiary…

  • Depressed Coal Markets Could Get Worse

    It probably seemed unlikely that the outlook for coal could get much worse, but the industry’s prospects continue to deteriorate.Both worldwide and within the United States, coal is suffering from rock bottom prices, oversupply, and weak demand. Metallurgical coal prices have dropped below $90 per metric ton, their lowest levels in a decade.The reasons are multiple, but boil down to an increasing shift away from coal due to market forces as well as regulatory pressure. The U.S. is moving towards natural gas, and China – which accounts for about half of global coal demand – is also trying to cut…

  • Think Coal Is Dead? This Low-Cost Hotspot Is Thriving

    America, Poland, Indonesia, Australia. The world's largest coal-producing nations haven't had much good news lately. The majority of reports across the coal sector this year have shown mines closing, operations being sold at firesale prices, and profits pinching down to pennies. But news late last week shows there's one spot bucking that trend. South Africa. Where output is remaining stubbornly high, even amid the worst depression the global industry has seen in a decade. Platts reports that South Africa's thermal coal exports in August barely fell as compared to a year ago. With total shipments hitting 5.73 million tonnes, just…

Martin tiller