• 25 mins Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 2 hours Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 hours Schlumberger Warns Of Moderating Investment In North America
  • 4 hours Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 5 hours Energy Regulators Look To Guard Grid From Cyberattacks
  • 7 hours Mexico Says OPEC Has Not Approached It For Deal Extension
  • 8 hours New Video Game Targets Oil Infrastructure
  • 10 hours Shell Restarts Bonny Light Exports
  • 11 hours Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 17 hours Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 22 hours British Utility Companies Brace For Major Reforms
  • 1 day Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 1 day Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 1 day Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 1 day OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 1 day London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 1 day Rosneft Signs $400M Deal With Kurdistan
  • 1 day Kinder Morgan Warns About Trans Mountain Delays
  • 2 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 2 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 2 days Russia, Saudis Team Up To Boost Fracking Tech
  • 2 days Conflicting News Spurs Doubt On Aramco IPO
  • 2 days Exxon Starts Production At New Refinery In Texas
  • 2 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 3 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 3 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 3 days China To Take 5% Of Rosneft’s Output In New Deal
  • 3 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 3 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 3 days VW Fails To Secure Critical Commodity For EVs
  • 3 days Enbridge Pipeline Expansion Finally Approved
  • 3 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 3 days OPEC Oil Deal Compliance Falls To 86%
  • 4 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 4 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 4 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 4 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 4 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 4 days Aramco Says No Plans To Shelve IPO
  • 7 days Trump Passes Iran Nuclear Deal Back to Congress

This "Lonely" Resource Sector Is Getting More Attractive

This

A great investor friend of mine once described very succinctly how to ensure you are always the smartest person in the room.

Find an empty room.

Such advice calls to mind today's coal sector. A space where it's getting harder and harder to find interested investors.

Last week another high-profile funding source made a decided move out of coal. The U.S. Export-Import Bank.

The Bank announced that it will stop funding coal projects abroad. Aligning itself with calls from the Obama administration to stop using federal dollars to support "dirty" industry.

Previously, the Export-Import Bank had been a major funder of both coal mines and coal-fired power plants. With project outlays in 2012 having approached $5 billion.

But those days are now gone. Leaving behind a big hole in capital provision to the coal sector.

This of course could mean opportunities for the few investors still sticking around in this "empty room". Coal investors today have less and less competition. We've recently seen even major investment banks pressured to back away from coal projects globally.

And when capital gets scarce, returns get better.

There will still be plenty of chances for coal investors willing to wade into these potentially-lucrative waters. Coal mining and coal-fired power are not going away. Particularly in the developing world, where we've discussed how coal demand in places like India is surging.

That means stalwart investors may get their pick of good projects here. And be able to demand excellent terms for their money.

However you feel about coal, there's no denying it's becoming a much less crowded part of the natural resources universe. Maybe enough to breed some new smartest people in the room.

Here's to a room of your own,

By. Dave Forest




Back to homepage


Leave a comment

Leave a comment




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