• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 9 mins Simple question: What is the expected impact in electricity Demand when EV deployment exceeds 10%
  • 7 hours America's pandemic dead deserve accountability after Birx disclosure
  • 2 days Putin blocks Ukraine access to Black Sea after Joe blinks
  • 47 mins U.S. Presidential Elections Status - Electoral Votes
  • 3 days Today Biden calls for Summit with Putin. Will Joe apologize to Putin for calling him a "Killer" ?
  • 1 day Fukushima
  • 2 days So. Who's for Universal Basic Income?
  • 3 days Biden about to face first real test. Russia building up military on Ukraine border.
Dave Forest

Dave Forest

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

More Info

Premium Content

A Bit Of Good News For The Global Coal Industry At Last

The global coal industry has fallen into its most depressed state in decades, possibly ever. But as production contracts and mines close, we're getting to a point where smaller shifts in the market could make a positive difference in prices.

And one such "x-factor" just emerged this week, in a completely unexpected place.

That's the Southeast Asian island of the Philippines. Where an industry group said this week coal demand may be set to hit new highs, after already touching record levels during the past year.

At a mining conference in Manila, the head of the Philippine Chamber of Coal Mines, Arnulfo Robles, told Reuters that coal demand in the country is surging. And Robles put some very big numbers on where consumption could go over the coming years and decades. Related: How To Play A Potential Collapse In The HAL/BHI Merger

He noted that the Chamber expects Philippines coal demand to jump by 10 to 15 million tonnes per year -- and stay at those elevated levels for the "next 10 to 20 years." A consequence of "dozens" of coal-fired power plants being built right now to support a growing economy.

That would be a major increase -- last year, the nation consumed 20 million tonnes of coal. Implying that yearly demand here could rise by 75 percent from today's levels.

Those stats are all the more impressive given that the 20 million tonnes imported during 2014 was already a record for the country. And it's critical to note that over three-quarters of this demand was met by imports, as the Philippines mining industry struggles to ramp up domestic supply. Related:LNG Glut Set To Worsen Considerably Over Next 3 Years

That suggests that the country could become a major new source of import demand over the coming years, echoing a pattern of rising coal imports that's being seen right now in other parts of Southeast Asia like Vietnam.

With demand rising as production falls rapidly, the stage could be setting up for a market recovery here. If you're in the coal market -- or looking for very contrarian buys in the commodities space -- this is an x-factor to watch.

Here's to a thrilla in Manila,

Dave Forest

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




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