• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 57 mins Recession Jitters Are Rising. Is There Reason To Worry?
  • 50 mins Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 43 mins China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 7 hours US Shale Economic Impact: GDP gain realized in shale boom’s first 10 years
  • 3 hours Used Thin Film Solar Panels at 15 Cents per Watt
  • 37 mins A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 7 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 2 hours IS ANOTHER MIDDLE EAST WAR REQUIRED TO BOLSTER THE OIL PRICE
  • 11 hours Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs
  • 10 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
  • 8 hours Iran Is Winning Big In The Middle East
  • 6 hours Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
  • 5 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 6 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Dave Forest

Dave Forest

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

More Info

Premium Content

Here's an Unexpected Vote For Coal

There's a lot of money to be made spotting market bottoms in commodities. Buying producers and projects at ultra-low valuations, before the inevitable uptick in a sector.

Market commentaries are a key indicator in this regard. With bottoms usually being marked by "irrational apathy"--illogical reasoning from market bears who've simply been spooked by falling valuations in unloved sectors.

There's been a lot of such sentiment lately in coal.

I was particularly struck by one comment the last few weeks. From a high-profile market analyst, who noted that Asian coal demand can be written off as a market driver. Because no one in this part of the world wants to build new coal-fired power plants.

It's striking how such analysis flies in the face of actual events on the ground. In fact, just this week we got news of one high-profile energy consumer that's actively looking to add more coal power to its supply mix.

That's Tokyo Gas, Japan's largest municipal natural gas utility. Whose managers told a major power conference that the firm has "strong interest" in building new coal-fired power plants in order to diversify energy supply.

The comments came from Tokyo Gas executive officer and senior general manager Kunio Nohata. Who told the Gastech conference in Goyang, South Korea that his company "may have a coal-fired power plant in the future or at least, we may buy electricity from coal-fired power plants."

The move comes as Japanese utilities come under increasing pressure to cut fuel costs. With prices for alternative fuels like LNG still running at very high levels here compared to other parts of the world.

At the very least, this shows that big players are still receptive to coal. At the most, it could signal a wave of increasing coal demand as power producers increasingly come to rely on this cheap and reliable baseload fuel.

We're seeing the same story in India, East Africa and Southeast Asia. If analysts are saying otherwise, it might be time to be looking for a bottom in this sector.

Here's to putting your money where the market is,

By Dave Forest




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