Posted on 03/20/2015 5:17:21 AM PDT by thackney
The future for the coal industry is looking “increasingly bleak,” according to an investor’s note from Macquarie Research. The analysis firm also said that “a wave of bankruptcies” appear to be just over the horizon as coal mining companies deal with mounting debt and a shrinking market.
The coal markets have collapsed in spectacular fashion over the last few years due to a perfect storm of factors. U.S. coal producers first had to compete ferociously with shale gas in America’s electric power sector as fracking took off about a decade ago. That forced an array of coal plants to shut down as cheap gas washed over the country. Subsequently a regulatory crack down from the federal government – including forthcoming restrictions on greenhouse gases – further dimmed the growth prospects of coal.
But U.S. coal producers always had the international market, and exports stepped up in concert with falling domestic consumption. Now the foreign buyers are shrinking as well. China, the one country that the coal industry could count on for ceaseless growth in coal consumption, actually burned 2.9 percent less coal in 2014 than it did the year before.
When China, which consumes about as much coal as the rest of the world combined, sees its level of coal burning stay flat or even fall, that raises red flags for the entire industry.
There are two other major factors contributing to the coal bust. First, a flood of new coal mines came online around the world in the last several years, creating a glut on the international market. Second, China has implemented protectionist measures to guard its domestic coal mining sector. As a result, it saw a 22 percent decline in coal imports at the end of 2014 from a year earlier. This has exacerbated the global glut....
(Excerpt) Read more at oilprice.com ...
This is just perfect for Obama and the enviros. Next they have to stop fracking and then promote an oil crisis.
Oh it’s going to be a lot more industries than just the coal industry with the financial whiz and economic genius we have in the WH. He’s virtually destroyed America with his hope and change and commitment to assisting our enemies. The kicker is that almost half of American are too stupid to realize it.
I predict one of the lowest IRS collections in history due to massive people being out of work.
Thank you EPA, et al.
Wonder how many of these soon-to-be-able-to-enjoy-time-with-their-family UMW members voted for the dweeb in the White Hut.
Coal serves the electrical power generation market. Oil is our transportation fuel. Oil doesn’t replace coal.
Obama Keeps Promise To Bankrupt The Coal Industry
Some people say Obama is a liar and never keeps his promises but out of work coal miners know that isn’t true.
Maybe not in the USA at this time,but it can. Other countries are using heating oil to generate power plants
The slow down in oil production has made transport of coal by rail easier, but terminals need to get built on the West coast to facilitate exports.
Congress also needs to take a more active role in preserving this industry.
Fortuanetly for them, Obama isn’t their ruler.
The production of oil in the US has not yet slowed down. It has continued to grow at this point but we may be nearing that point.
Also, consumption continues to grow still requiring transport of oil and the products as well.
but terminals need to get built on the West coast to facilitate exports.
The west coast oil production continues to fall. The Gulf coast will be the primary source of oil exports IF the export ban is repealed.
Our supposed “conservative” governor of Iowa solved that comrade! He just increased the gas taxes!
Of course, many of his backers, donors, and friends are standing in line to bid on “infrastructure improvements”, but what matters most is that incoming money increases.
There is a reason that Jebbie won’t commit to lowering taxes.
Oil transport by train has slowed down regardless of the domestic production numbers, this has been reported by a number of coal companies in their 2015 earnings estimates...and the West coast needs COAL export facilities not oil export facilities.
An unimportant observation, but in our town we had a flood that did so much damage to a coal fired plant in the middle of town they opted not to make repairs. This state has so much wind power that we just added grid connections and are bringing in power from other sources. It was only a 72mw coal fired plant but it’s gone.
Oil does not replace coal, but imported coal replaces American coal. Cheaper to import from Columbia than coal produced in the US. Double whammy for our coal producing states.
http://www.wsj.com/articles/awash-in-coal-u-s-imports-even-more-1407974928
Other nations don’t have the US EPA making it difficult/expensive to mine.
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