• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 3 hours Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
  • 4 hours Tesla Launches Faster Third Generation Supercharger
  • 6 hours Passerby doused with flammable liquid and set on fire by peaceful protesters
  • 1 hour EU has already lost the Trump vs. EU Trade War
  • 8 hours Who writes this stuff? "Crude Prices Swing Between Gains, Losses"
  • 3 hours China's Renewables Boom Hits the Wall
  • 20 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 14 hours Climate Change Consensus Shifts in Wind, But Gas Is Still the Right Move
  • 21 hours Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 19 hours Does .001 of Atmosphere Control Earth's Climate?!
  • 20 mins ''Err ... but Trump ...?'' #Humph
  • 19 hours Trump Interview On Farage's Radio Show #classy

Coal’s Slow And Painful Demise Bankrupts Another Mining Giant

Coal Victim

Murray Energy, the US largest privately owned coal producer led by outspoken Donald Trump’s ally Robert Murray, has filed for chapter 11 protection, as the fossil fuel’s role in the country’s energy mix continues to weaken

The Ohio-based miner, the eighth coal company to go under over the past year, said it had reached a restructuring agreement with lenders to restructure more than $2.7 billion of debt.

As part of the arrangement, lenders are creating a new entity called Murray NewCo, which will acquire all assets belonging to Murray Energy — one of the most powerful and well-connected companies in the coal industry. 

The coal producer noted it would finance operations with available cash and a $350 million debtor-in-possession financing facility.

Robert Murray, the self-proclaimed king of the coal industry, is stepping down from its chief executive position, but he will remain as the company’s chairman. Former chief financial officer, Robert Moore, is taking over, the company said.

“Although a bankruptcy filing is not an easy decision, it became necessary to access liquidity and best position Murray Energy and its affiliates for the future of our employees and customers and our long term success,” Robert Murray said in the statement.

Unlike many of its peers, Murray Energy was able to overcome the shrinking demand from utilities by focusing on exports. However, those shipments have shrank because of declining global prices.

Related: A ‘’Gusher Of Red Ink’’ For U.S. Shale

US coal exports are estimated to have dropped to 20.9 million tonnes in the third quarter, according to the country’s Energy Information Administration (EIA). That represents a 28 percent fall compared to the same period of 2018.

The EIA expects coal exports to keep their downward trend, slipping to 17.3 million by the end of 2020.

Related: Protect The Oil: Trump’s Top Priority In The Middle East

Internal demand for the fossil fuel, in turn has hit a decades-low, with power plants expected to consume less coal next year than at any point since President Jimmy Carter was in the White House, according to government forecasts released in early October.

Going, going, gone


Murray Energy’s collapse is yet another sign of a dying industry, despite Trump’s rescue attempts. Right after taking office, he slashed environmental regulations and even installed former coal lobbyist Scott Pruitt at the head of the Environmental Protection Agency (EPA).

The deregulatory push, however, has been unable to offset market forces. Coal just can’t compete with cheap natural gas and the falling cost of solar power, wind and other forms of renewable energy.

Murray, who began working in coal mines at 16 to support his family and founded his own company in 1988, has been an outspoken advocate of coal.

He challenged President Barack Obama’s clean-air rules and even called him the “greatest destroyer the US has ever had.”

In 2017, Murray filed a defamation lawsuit against John Oliver, HBO and CNN owner Time Warner (now called WarnerMedia), alleging “character assassination” during an episode of “Last Week Tonight.” That lawsuit was dismissed last year.

Murray has also been a skeptic of climate change, arguing that any threats have been exaggerated.

By Mining.com 

More Top Reads From Oilprice.com:



Join the discussion | 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