I don’t really understand the future of coal, because I don’t understand how it competes with natural gas. if someone could go into a little detail on that, I’d be grateful. (Sort of reminds me of Keystone XL...yes...it’s good that the government is out of the way. But that doesn’t mean it’s going to happen, b/c market forces are not adequate to make it happen....same with coal...at least that’s my analysis, but I’d sure like to hear a contrary view).
That is because your viewpoint is correct, at least in the short term. Coal CANNOT compete with natural gas. Of course, in the long term, "eventually" the natural gas supplies will deplete. It remains to be seen whether another energy tech will arise to compete with coal. If not, then coal will be used.
The main advantage coal had originally is that it could be obtained in large quantities using primitive tools (pick and shovel, horse-drawn wagons, etc).
We still have coal fired plants that can now stay operating, plus it can be turned into natural gas ( I don’t know the costs). If nothing else, it can always be exported to countries that still use large amounts of coal to generate electrivity.
My understanding is that coal doesn’t compete with gas so much as with LNG, which is more expensive to create and ship than NG is to pump thru a pipeline. That is, I think coal is primarily an export commodity. And China and India are the main export markets, AFAIK.China has been stamping out coal-fired power plants like cookies, one a week - which is part of the joke which is the Paris scam. China is going to stop using those power plants in 2030. Of course they are.
“I don’t really understand the future of coal, because I don’t understand how it competes with natural gas.”
Part of the explanation has to do with a economic principle known as substitution.
For example, fifty low skilled laborers worth $10 per hour can be substituted for ten high skilled laborers earning $50 an hour, or for a single highly skilled heavy machine operator charging $500 per hour, even though no one is disputing the fact that the highly skilled laborer is more productive.
The low skill workers don’t earn as high a wage, and don’t enjoy as high a standard of living, but they still find their niche in the economy and remain viable.
Just as laborers of all different skill levels can coexist in the marketplace, so can all different energy sources with differing technologies, productivities and profitability levels.
I also believe coal has several advantages over natural gas, including cheaper stockpiling, and compatibility with legacy coal fired plants.
Finally, deregulation in the coal industry may cause at least a temporary bounce in economic viability as government imposed cost barriers are removed, artificially suppressed demand returns and market equilibrium is restored.