Category Archives for Coal Prices
WASHINGTON – Media sources are reporting President-elect Donald Trump will name Oklahoma Attorney General Scott Pruitt to head the U.S. Environmental Protection Agency (EPA). The American Coal Council welcomes the choice of Pruitt.
In his capacity as Oklahoma AG, Scott Pruitt has been a leader in challenging unwarranted regulation and a fighter in opposing overreach by federal agencies. He will change EPA’s focus from environmental activism at any cost to a common sense approach with a balancing of economic and environmental considerations. Attorney General Pruitt is serious about cooperative federalism and has a track record to prove it. He’ll bring the strength of that track record to Washington, DC and return EPA to its job of administering the laws as passed by Congress.
(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.
For more information:
World Coal (October 2016) —A recent analysis by the Great Lakes Energy Institute (GLEI) of Case Western Reserve University concluded the decline of the nation’s coal industry has been due to market forces and technology: “EPA rules have little to do with coal’s decline”, the analysis said. “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?
Peter Keavey, CME Group
Risk management is more important than ever in today’s coal market. Cheap natural gas (NYMEX Henry Hub Natural Gas futures prices remain below $3.00) is competing fiercely with coal in the electricity bid stack. The fight to be the low-cost generator has become even more competitive in recent years, as the efficiency of gas-fired generation has steadily improved, while coal-fueled generation has remained relatively unchanged. Proposed environmental regulations, including the EPA’s newly announced Clean Power Plan, which could lead to wide-scale coal plant retirements, are a major source of uncertainty for the future of the coal industry. While many threats to the coal business are difficult to manage, price risk – arguably the biggest determinant of profitability – can be effectively hedged using futures.
Some good news for Alpha’s West Virginia mines.
Alpha Natural Resources, Inc. (NYSE: ANR) operating affiliates announce that the WARN notices for eight coal mines in West Virginia have expired and the mines and their approximately 750 workers will continue to operate. The longer-term plans for these mines will continue to depend upon market prices and demand.
Have you registered for the 2014 Coal Market Strategies Conference in Park City, Utah on August 11 – 13?
During our two-day program, Session III presenters will focus on Policy, the Environment, and Technology.
- Politics & Policy in 2014 – Prognostications on Mid-term Elections: We will examine the critical factors and races influencing House and Senate majorities. Will the Senate shift, and what’s in it for coal if it does? We will focus on key coal / energy state races, and how Democrats may fare amidst concerns over the ACA rollout and administration/EPA actions to address climate. Plus we’ll take a look ahead to 2016.
Speaker: Stefan L.B. Bailey, Director, Prime Policy Group