Category Archives for Energy Trading
Information on energy markets
At least four new underground metallurgical coal mines are planned for Pennsylvania in 2017 as the industry looks to take advantage of rising demand and prices for met coal both domestically and internationally after spending several years in the doldrums.
Rosebud Mining, Corsa Coal, Robindale Energy and AK Coal Resources all are developing new mines in the Keystone state ranging in size from several hundred thousand tons annually to nearly a million tons a year. Much, though not all, of that output will be earmarked for the seaborne export market. AK Coal, however, plans to supply coal from its new Polaris mine in Somerset County to a plant in Middletown, Ohio, owned and operated by its AK Steel parent company.
President-elect Trump will likely start rolling back eight years of Obama administration climate regulations and restrictions on coal, oil and gas development
The U.S. may be on the cusp of a stark turning point in energy and climate policy with the election of Donald Trump, who has stocked his cabinet with a majority of people who doubt or reject established climate science.
Top priorities of the Trump transition team and cabinet nominees — many who disregard the connection between global warming and fossil fuel energy use — include rolling back eight years of Obama administration climate regulations and restrictions on coal, oil and gas development.
SNL, Christopher Coats, 12/8/2016
At one of the first industrywide gatherings since Election Day, the coal sector offered cautious optimism about the Trump administration’s impact on the industry after years of challenges.
Gathered in New York for the 15th Annual Coal Trading Conference on Dec. 5 and 6, industry representatives offered their takes on election results that, admittedly, few saw coming.
Throughout this year’s presidential campaign, Donald Trump pledged support for the coal industry, promising on several occasions to push back on Obama administration regulations often cited as detrimental to the industry and to “put miners back to work.”
(17 November 2016) Despite persistent challenges, the outlook for the North American coal industry has been revised to stable from negative, Moody’s Investors Service said in a new report. A combination of fourth quarter 2016 metallurgical coal benchmark prices settling at $200 per metric ton (mt) and natural gas prices hovering around $3/MMbtu has provided immediate relief for the strained sector.
The rating agency has also revised its price sensitivity assumptions for seaborne coal prices. In the medium-term range, met coal has been lifted to $90-$130/mt from $85-$90/mt, and Newcastle Thermal assumptions have been increased to $50-$65/mt from $53-$58/mt.
After declining for several months, the share of U.S. electricity fueled by coal is expected to slowly begin growing when compared to the same period last year. In contrast, the share of generation from natural gas is expected to experience year-over-year declines. Based on expected temperatures and market conditions, coal is expected to surpass natural gas as the most common electricity generating fuel in December, January, and February.
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ACC Issues Statement on Case-Western Study Findings: Study’s Findings Don’t Reflect the Regulatory Reality
WASHINGTON, DC (October 20, 2016)– A recent analysis by the Great Lakes Energy Institute (GLEI), of Case Western Reserve University, concludes the decline of the nation’s coal industry over the past eight years has been due to market forces and technology rather than the regulatory policies of the Obama Administration. “EPA rules have little to do with coal’s decline”, the analysis says. “Shale-gas competition has decimated coal.”
This article was originally published in Issue 1, 2016 of American Coal magazine – read the full issue (and past issues) on the ACC website by Clicking Here
Coal Supply: Will We Overcorrect?
By: Andrew Moore, Platts
According to recent forecasts from the Energy Information Administration, US coal production could dip to 784 million st in 2016, the lowest annual total since 1983.
Should the forecast prove correct, US coal production will have dropped 21.4% since 2014. In percentage terms, it would be largest two year decline since the EIA began tracking coal production in 1949.
This article was originally published in Issue 1, 2016 of American Coal magazine – read the full issue (and past issues) on the ACC website by clicking here.
Where is Coal Demand Headed?
By: Steve Piper, S&P Global Market Intelligence
Over several months of 2015, the market share of natural gas generation exceeded that of coal-fueled generation as a combination of mild heating season weather and retirement of coal plants nudged natural gas into the lead position toward the end of the year. With coal retirements largely behind, and cheap natural gas ahead, what production levels face the restructured coal markets?
By: Andrew Moore, Managing Editor Platts Coal Trader
Intercontinental Exchange on Monday (April 4) launched a new U.S. coal futures contract, and corresponding futures options contract, for Illinois Basin coal, the first coal futures contract for the U.S. market since October 2014.
The futures contract will be financially-settled against a monthly average of Platts daily physical market price assessments for 11,800 Btu/lb Illinois Basin coal. Platts is the leading independent provider of information and benchmark prices for the energy and commodities markets.
Ed note: This article was originally published in Issue 2, 2015 of American Coal Magazine
By: Mark Gresswell, HDR
If we were to assess the future of the global coal sector from reading the mainstream press, we could safely assume that the last mine was about to close and that draglines and long walls would be museum artifacts within a decade. Thankfully some of us still analyze the fundamentals of commodity markets rather than just push an ideological position, unconstrained by the inconvenience of facts.