• 3 hours Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 5 hours South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 8 hours Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 8 hours Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 10 hours Iraq Steps In To Offset Falling Venezuela Oil Production
  • 12 hours ConocoPhillips Sets Price Ceiling For New Projects
  • 3 days Shell Oil Trading Head Steps Down After 29 Years
  • 3 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 3 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 3 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 3 days Venezuela Officially In Default
  • 3 days Iran Prepares To Export LNG To Boost Trade Relations
  • 3 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 4 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 4 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 4 days Rosneft Announces Completion Of World’s Longest Well
  • 4 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 4 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 4 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 4 days Santos Admits It Rejected $7.2B Takeover Bid
  • 5 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 5 days Africa’s Richest Woman Fired From Sonangol
  • 5 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 5 days Russian Hackers Target British Energy Industry
  • 5 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 5 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 5 days Lower Oil Prices Benefit European Refiners
  • 5 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 6 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 6 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 6 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 6 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 6 days OPEC To Recruit New Members To Fight Market Imbalance
  • 6 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 7 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 7 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 7 days GE Considers Selling Baker Hughes Assets
  • 7 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 7 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 7 days Aramco To List Shares In Hong Kong ‘For Sure’
Did Venezuela Just Default?

Did Venezuela Just Default?

S&P Global Ratings declared Venezuela…

Who's Next? Venezuela's Collapse Puts These Nations At Risk

Who's Next? Venezuela's Collapse Puts These Nations At Risk

While investors have been ignoring…

MINING.com

MINING.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

More Info

Murray Energy Sues U.S. Gov. Over “Illegal And Destructive” Regulations

Murray Energy Sues U.S. Gov. Over “Illegal And Destructive” Regulations

Obama

Murray Energy says the new standards, which decrease the threshold for ground-level ozone to 70 parts per billion, set the levels so that even some of the country’s national parks will be out of compliance. (Image from archives)

US coal miner Murray Energy Corp., one of the top producers in Northern Appalachia and the Illinois Basin, is suing the Obama administration over new ozone standards it says will harm the coal industry.

The new standards, which decrease the threshold for ground-level ozone to 70 parts per billion, set the levels so that even some of the country’s national parks will be out of compliance, the Ohio-based company claims.

Related: Is Russia The King Of Arctic Oil By Default?

“For the past seven years, the Obama Administration has waged a regulatory rampage against the United States coal industry, and the thousands of high paying, well-benefitted jobs which it provides,” said Robert E. Murray, chairman, president and chief executive officer of Murray Energy, in a statement. “This Ozone Rule is yet another illegal and destructive action aimed at killing these jobs.”

The move follows a lawsuit filed last week by 24 states, which are challenging President Obama's climate change plan in federal court.

It also comes on the heels of a new study published by the National Mining Association that claims the costs of a so called “Stream Protection Rule,” proposed in July, will take away between 40,038 and 77,520 mining jobs and between $14 billion and $29 billion in annual value of coal lost to production restriction.

Perfect storm

Coal markets have collapsed over the last few years due to a perfect storm of factors.

U.S. producers first faced increasing competition from shale gas in America’s electric power sector as fracking took off about a decade ago. Several coal plants shut down as a result of cheap gas and the fresh regulatory crack down from the federal government —including restrictions on greenhouse gases.

Related: U.S. Shale Drillers Running Out Of Options, Fast

Thermal coal prices are currently down to six-year lows of around $42 a tonne, far from the US$150 per tonne the commodity was fetching in 2011.
CoalPrices


Analysts estimate around a fifth of the thermal coal industry is losing money based on current prices — a position that is usually unsustainable in commodity markets.

Related: Pain For Oilfield Services Will Continue Even If Oil Prices Rebound

“When you are that far into the cost curve, the downside is pretty limited,” Tom Price, commodities strategist at Morgan Stanley, said in a March note. “Price buoyancy is already indicating that this is the case.”

And while there is talk of supply cuts and rising Indian demand, China continues to be the main factor to tip the seaborne thermal coal market one side of the other.

Late last year, Beijing introduced a series of measures to help protect its domestic coal mines from competition and reduce pollution at the same time.

By Cecilia Jamasmie

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