• 5 minutes Malaysia's Petronas vs. Sarawak Court Case - Will It End Up In London Courts?
  • 9 minutes Sell out now or hold on?
  • 16 minutes Oil prices going down
  • 12 mins Oil prices going down
  • 1 hour Oil and Trade War
  • 14 hours After Three Decade Macedonia End Dispute With Greece, new name: the Republic of Northern Macedonia
  • 14 hours Two Koreas Agree To March Together At Asian Games
  • 55 mins When will oil demand start declining due to EVs?
  • 3 hours Sell out now or hold on?
  • 1 hour venezuala oil crisis
  • 5 hours Correlation Between Oil Sweet Spots and Real Estate Hot Spots
  • 4 hours Russia and Saudi Arabia to have a chat on oil during FIFA World Cup - report
  • 4 hours Trump Hits China With Tariffs On $50 Billion Of Goods
  • 5 hours Malaysia's Petronas vs. Sarawak Court Case - Will It End Up In London Courts?
  • 37 mins Germany Orders Daimler to Recall 774,000 Diesel Cars in Europe
  • 14 hours Geopolitical and Political Risks make their strong comeback to global oil and gas markets
  • 18 hours Australia mulls LNG import
  • 4 hours What If Canada Had Wind and Not Oilsands?
  • 11 hours Trump Renews Attack On OPEC Ahead Of Group's Production Meeting

Breaking News:

Egypt Raises Fuel Prices By Up To 50%

Alt Text

China’s Oil Demand Could Take A Big Hit

In the last three years…

Alt Text

The Fed Is Driving Down Oil Prices

The hawkish U.S. Federal Reserve…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

Is This A Sign Of Stabilizing Coal Markets?

Is This A Sign Of Stabilizing Coal Markets?

The news continues to be bleak for the global coal sector. With an announcement last Friday of a moratorium on new coal licensing across the U.S. now hitting the industry.

At the same time however, stalwarts of the industry continue to soldier on. With BHP Billiton saying this week that it produced 87,000 tonnes of metallurgical coal from its recently-commissioned Haju mine in Kalimantan during the fourth quarter of 2015. Related: OPEC Still Sees Oil Markets Balancing This Year

And there may a sliver of hope for coal prices now coming from that part of the world. With authorities in world-leading coal exporter Indonesia this week announcing a substantial fall in the nation’s output during the past year.

As expected, Indonesia’s 2015 coal production came in well below target — at 392 million tonnes for the year.

That was less than the government’s previous projections of 425 million tonnes. Showing that production is declining quicker than authorities had expected under the weight of low prices.
All told, 2015 output was down 14.4 percent from the 458 million tonnes Indonesia produced in 2014. Related: $329 Billion Invested in Clean Energy in 2015

And that wasn’t the only notable number that came out of Indonesia’s year-end coal stats. With the country also posting a bigger-than-expected rise in domestic consumption.

The Ministry of Energy and Mineral Resources noted that coal use in Indonesia rose 14.8 percent to 87.43 million tonnes. Well in excess of the 70 million tonnes the government had projected for local use.

That increase, along with the fall in production, led total exports to decline by 87 million tonnes during the year — to 295 million tonnes, representing a 23 percent fall. Here’s the chart:

Related: Oman Offers to Slash Oil Production If OPEC Follows Suit

This represents the lowest level of exports for Indonesia since 2011 — when the nation was just starting a major ramp-up of its coal production on the back of rising global prices.

It’s probably not going to move the dial just yet. But the market is rebalancing. Watch to see if output falls further during the opening quarters of 2016 — which could take exports back toward levels that prevailed prior to the recent boom.

Here’s to levelling out

By Dave Forest

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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