Largest US coal-producer files for bankruptcy.

[JohnSnowNW]

The coal industry has faced a myriad of problems in recent years, including proposed regulation from the Obama administration to cut greenhouse gas emissions from the nation's coal-burning power plants. The industry refers to those regulations as Obama's "war on coal."

While the new regulations have been put on hold by the Supreme Court, the industry has faced a number of other economic woes, including significantly lower prices for natural gas, which is a competing fuel used by electric utilities, and slowing economic growth in China, a major market for U.S. coal.

Renewable sources of energy are also getting much cheaper, further squeezing demand.

Arch Coal (ACI), which owns the second-largest U.S. coal reserves behind Peabody, filed for bankruptcy in January.

Top U.S. coal company Peabody Energy files for bankruptcy

 

[ItsNotAboutTheMoney]

At CERA, the head of the Chinese state grid must have really burst some peoples bubbles.

Somebody previously posted this link:
“Base load” power: a myth used to defend the fossil fuel industry

Coal use has fallen in China, and China is essentially aiming to eliminate coal and oil use for electricity, and replacing them with renewables. They're adding capacity, but utilization continues to fall. Coal use has fallen several percentage points over the last couple of years.

China signed a major natural gas deal with Russia, and fairly recently banned all imports of brown coal. So it's not just coal electricity they want to cut out, they're looking to replace solid fuel heating with natural gas as well.


With the current slowdown in China, plus their combined push for renewables for electricity, electricity for transportation, and natural gas for heat, what people might have felt to be a long-term growth market for coal and oil, isn't going to provide the growth that was expected.

 

[rolosrevenge]

They got fracked...

 

[LetsGoFast]

The biggest driver is actually reduced demand for steel, as laid out nicely in Vox:

The US coal industry is falling apart. Here's the surprising reason why.

 

[rolosrevenge]

Now that was an interesting read. Coming from the power side, I didn't know much about Met coal. I do feel for the miners. That's why you never trust your retirement to a company pension, companies don't last forever.

 

[EVie'sDad]

I wonder if president trump would bail out the coal industry...something tells me yes, he would.

http://www.nytimes.com/2016/05/27/us/politics/donald-trump-global-warming-energy-policy.html?_r=1

 

[bkp_duke]

I doubt it. He is a business man who knows the value of letting market forces set the evolution of an industry. He would just let the industry die.

 

[1101011]

I wonder if president trump would bail out the coal industry...something tells me yes, he would.

Wouldn't be his smartest move. The role of coal in the manufacturing process is declining for good reason.

But a president trump?

 

[EVie'sDad]

I doubt it. He is a business man who knows the value of letting market forces set the evolution of an industry. He would just let the industry die.

really?

"Other elements of Mr. Trump’s energy proposals appear less viable. As coal mining jobs have declined, Mr. Trump has vowed to fully restore their numbers.

“We’re going to bring back the coal industry, save the coal industry,” he said. “I love those people.”

 

[bkp_duke]

really?

"Other elements of Mr. Trump’s energy proposals appear less viable. As coal mining jobs have declined, Mr. Trump has vowed to fully restore their numbers.

“We’re going to bring back the coal industry, save the coal industry,” he said. “I love those people.”

It's political posturing. He tells the oil industry they will get more jobs, the coal the same, and if he visits west texas I am sure he will be "impressed with wind".

The only take-away is to look at business and I am sure there are now far more jobs from renewables than the coal industry, and he's not stupid enough to rock that boat.

 

[RubberToe]

I am sure there are now far more jobs from renewables than the coal industry, and he's not stupid enough to rock that boat.

Correct: More Americans now work in Solar Power than the extraction of Oil, Gas or Coal:

More Americans now work in Solar Power than the extraction of Oil &Gas, or Coal