• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 3 hours Sources confirm Trump to sign two new Executive orders.
  • 9 hours Why Wind is pitiful for most regions on earth
  • 3 hours During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 7 hours In a Nutshell...
  • 4 hours A Real Reality Check on "Green Hydrogen"
  • 7 hours Why Oil could hit $100
  • 3 days Joe Biden to black radio host, " If you don't vote for me you ain't black". That's our Democratic Party nominee ?
  • 4 days Happy 4th of July!
  • 4 days Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 4 days Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 3 days Putin Paid Militants to Kill US Troops
  • 1 day Coronavirus hype biggest political hoax in history
  • 4 days Apology Accepted!

Is The Coal Industry Void Of Opportunity?

Mention the word “coal” to most investors without the word “short” attached in some way and they, understandable and usually rightly, run as fast as they can to get away from the crazy person talking to them. Despite the industry’s best efforts to promote what they refer to as ‘clean coal”, most people view the fuel as dirty, dangerous to recover and essentially a thing of the past.

That perception is certainly held by the current administration in the U.S., where the Environmental Protection Agency (EPA) rules regarding emissions will effectively close dozens more coal fired power plants over the next few years. Overseas, even the Chinese and the Indians have at least paid lip service to cleaner electricity production recently and declared an intention to move away from coal. When push comes to shove I am still not convinced that the necessary huge investment to make that shift will be forthcoming in either case but, even without that, low global prices and relatively high production costs have made exports unlikely to fill the gap between supply and demand here in the U.S. Indeed, total exports of coal dropped by 21.8 percent from 74,981,013 short tons in 2014 to 58,659,154 last year, according to the EIA.

Those realities have certainly been reflected in the stock and fortunes of U.S. coal producing companies. Bankruptcy has already been declared by Patriot Coal, Alpha Natural Resources, and Arch Coal and, any day now…




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