• 5 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 10 minutes Iranian Sanctions - What Are The Facts?
  • 15 minutes U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 10 hours Can the World Survive without Saudi Oil?
  • 13 hours Sears files Chapter 11
  • 13 hours Natural disasters and US deficit
  • 9 hours China Is the Climate-Change Battleground
  • 7 hours Porsche Says That it ‘Enters the Electric Era With The New Taycan’
  • 10 hours U.S. - Saudi Arabia: President Trump Says Saudi Arabia's King Wouldn't Survive "Two Weeks" Without U.S. Backing
  • 1 day German Voters Set to Punish Merkel’s Conservative Bloc
  • 1 day Saudi A Threatens to Block UN Climate Report
  • 5 hours $70 More Likely Than $100 - YeeeeeeHaaaaa
  • 23 hours Threat: Iran warns U.S, Israel to expect a 'devastating' revenge
  • 44 mins How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 7 mins WTI @ $75.75, headed for $64 - 67
  • 1 day Nothing new in Middle East? Iran Puts On 'Show Of Strength' Military Exercise In Gulf
Alt Text

Why China’s Shale Boom Is Struggling

China’s shale revolution has received…

Alt Text

North Korea Hit Hard As Coal Exports To China Fall 71%

Chinese coal imports from North…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

Surprising Opportunities In Coal

Long term subscribers and those with a long memory may remember that back in August of last year I wrote a piece on coal stocks. At the time I described them as too risky for investors and suggested only one trade, shorting Westmorland Coal (WLB) which, at the time looked seriously overvalued. That trade worked out well as WLB fell from there, dropping around 40 percent until bottoming out earlier this month. That wasn’t the only coal stock to fall in that time. They pretty much all did, but now the risk/reward ratio has shifted enough to make investing in the sector worthwhile for those who don’t mind taking a risk.

The dramatic fall in WLB and others was, at least in part, due to the drop in oil prices, but that had another effect. While the cost of energy was not the point of those who railed against coal and other traditional energy forms, it did lend an economic argument to calls for greater restrictions on fossil fuels and more investment in alternatives. As prices have fallen, the case for transforming electricity generation around the world has seemed less urgent. That observation may be somewhat cynical and it may upset those committed to the environment, but it is a simple fact, and one that can be profited from.

Without regular demands for the effective destruction of the coal industry some existential risk has been removed, allowing potential investors to focus on a couple of relevant, more positive facts. According to the IEA, coal…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News