Insider Secrets

Insider Secrets

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

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Energy / Coal

  • Peabody Energy (BTU): Time To Pick Up The Knife

    There is an old cliché often cited by traders that attempting to catch a falling knife is an extremely dangerous thing to do, but that doesn’t mean that picking one up off the ground isn’t occasionally worth the risk. The phrase “The U.S. coal industry is dead…” has been uttered so many times in the last six months that it has become conventional wisdom. Stocks in the industry have fallen in spectacular fashion, with those companies that have avoided bankruptcy so far losing over 90 percent of their value over the last five years or so. Peabody Energy (BTU) is…

  • Crunch Time For The US Coal Industry

    Coal prices in the US are collapsing. The September Appalachian coal futures contract gave up over 2% on Friday as the industry faces unprecedented challenges.Source: barchart One can see the decline in the industry's activity levels by tracking rail shipments of coal. Railcar loadings are now at the lowest level in decades. Related: The Dark Side Of The Shale BustSource: Yardeni Research The industry's woes have been caused by a "perfect storm" of events that wreaked havoc on US coal producers. Here are some of the recent developments: 1. US natural gas production has been on the rise for the last…

  • Norway Coal Divestment Not What It Seems

    The Norwegian government has affirmed its plans to divest its coal related holdings.On June 5, parliament voted to go through with the divestment, which will see the country’s $890 billion government pension fund (NGPFG) – otherwise known as the oil fund – disassociate itself from any company that derives more than 30 percent of their revenues or power production from coal. According to the Institute for Energy Economics and Financial Analysis, the divestment will cover around $5.4 billion – easily the single biggest fossil fuel divestment to date.That’s all well and good, but it may not all be true –…

  • European Oil Companies Throw Coal Under The Bus

    A group of European oil companies have banded together to call upon the international community to institute a global carbon price. In a letter to the UN, published by the FT, the oil companies call for “decisive action” at the global climate negotiations set to take place in Paris in December. Crucially, the oil companies – which consisted of BG Group, BP, Eni, Royal Dutch Shell, Statoil, and Total – positioned natural gas as the solution to much of the problem. Related: Investors Turning Away From Green Energy By doing so, the oil companies are trying to throw the coal industry…

  • Coal Facing Worst Year Yet in 2015

    2015 is shaping up to be a fateful year for the coal industry. After coal prices tumbled from their highs in 2011, the industry hit a rough patch. Years of buildup in mining capacity hit the markets at the same time, sending prices crashing. By the beginning of 2014, things were looking pretty grim. But optimists hoped it would be merely temporary; a supply glut that would ease once demand picked up. However, demand has not been nearly as strong as expected. The US has been moving away from coal for a few years now, with cheap natural gas, more…

  • China Gaining Influence In This Key Emerging Coal Market

    Another bank, Credit Agricole, voted this week to stop financing coal mining. Suggesting this is becoming a space with little competition for investment -- and perhaps therefore considerable opportunity.Like the newly opening coal fields of Kenya. Where this week the government awarded two new exploration blocks -- just the second and third ever offered in the country.Kenya's energy and petroleum ministry said Tuesday it has chosen developers for the so-called A and B blocks of the Mui Basin, in the country's eastern region.Related: China Builds Influence In Latin America As Commodity Prices TankThe two coal licenses will go to a consortium…

  • Coal Is Doomed Even If It Wins Against EPA In Courts

    The controversy over the Environmental Protection Agency’s Clean Power Plan has become the latest chapter in the chronicle of President Obama’s so-called ‘war on coal’. The plan promises many things, chief among them the health and climate benefits accrued by switching to cleaner burning fuels. But a case before the DC Circuit Court has the potential to derail the plan before it even comes into effect, with implications for US coal producers and the national clean energy debate.The new regulations have their critics, led by coal companies and Senate Majority Leader Mitch McConnell (R- KY), who has personally urged the…

  • The Latest Casualty In Energy’s Hardest Hit Industry

    Another coal company bites the dust. Again.Patriot Coal, a miner of coal in several Appalachian states, filed for Chapter 11 bankruptcy on May 12. Patriot said it is “in active negotiations for the sale of substantially all of the Company's operating assets to a strategic partner.”The move comes just a year and a half after the company emerged from its previous bankruptcy. At the time, some secured creditors received repayments, but shareholders bore the brunt of the restructuring.The initial bankruptcy came as Patriot struggled with high costs during a downturn in the coal industry. But after the company came up…

  • David V. Goliath: Small-Cap Tech To Save Giant Coal

    The Environmental Protection Agency’s (EPA) new mercury pollution regulations that took effect last month opened the flood gates for a new multi-billion-dollar energy industry that has investors scrambling to get in on second-generation technology poised for massive revenue gains.When the EPA measures to curb mercury pollution from coal-fired power plants over 25 megawatts took effect on 16 April, it wasn’t only environmentalists who were popping the champagne corks—technology companies specializing in mercury remediation broke out the glasses as well.After all, the new regulations created a $2 billion-a-year, federally mandated business for them virtually overnight. These Federal regulations add a further…

  • Coal Markets May Just Have Been Thrown A Lifeline

    There have been rumors the last few months. And last week we got confirmation of a major shift underway in one of the world's biggest bulk commodities. That's thermal coal. Where it looks as if the world's largest supplier -- Indonesia -- is on the verge of a collapse in output. Related: Warren Buffett Betting Big On Wind Energy In Nebraska Reuters quoted Pandu Sjahrir, the chairman of the Indonesian Coal Mining Association, as confirming that the country's coal producers are now cutting back output in a major way. With Sjahrir saying that overall Indonesian production could drop to between…

Martin tiller