• 3 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 6 minutes This Battery Uses Up CO2 to Create Energy
  • 10 minutes Phase One trade deal, for China it is all about technology war
  • 12 minutes Trump has changed into a World Leader
  • 3 hours Indonesia Stands Up to China. Will Japan Help?
  • 2 hours Shale Oil Fiasco
  • 3 hours Might be Time for NG Producers to Find New Career
  • 6 hours Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 6 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 8 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 21 mins Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 8 hours Beijing Must Face Reality That Taiwan is Independent
  • 2 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 7 hours China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 24 hours US Shale: Technology
  • 2 days Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
Alt Text

Another OPEC Producer Looks To Back The Aramco IPO

As the world’s largest initial…

Alt Text

The Worst Oil Trades Ever Made

Wall Street is full of…

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
Download on the App Store Get it on Google Play