“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.
The total advantages of natural gas far outweigh your so-called advantages. "Legacy coal fired plants" are rapidly being replaced by combined cycle (gas-turbine/steam turbine) natural gas plants. Coal has no future in the power generation business in the US.
thank you!