Tag Archives for coal
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.
The ICSC has released a series of radio ads in Washington, DC on WTOP and WMAL. The text of the ads is…
“President Obama wants to eliminate coal, our cheapest electricity source, in a vain attempt to control Earth’s climate. Power costs will soar with millions of jobs lost.
Science does not support Obama’s actions. Climate will continue to change no matter what we do.
Moreover, developing countries emit the most carbon dioxide. But under the Paris Agreement they don’t need to make any reductions. So even if the UN’s science were correct, America’s sacrifice would be for nothing.”
On January 28th, 2016, Jason Hayes, Associate Director of the American Coal Council will join Ryan Flynn, Secretary of Environment and the Natural Resources Trustee, State of New Mexico on the US Energy Panel at the 16th Coaltrans USA conference in Miami, FL to discuss “How reliable will the provision of electricity be following the EPA Clean Power Plan?“
The ACC recognizes the importance of an open discussion of key regulatory issues such as these and welcomes the opportunity to meet and network with fellow energy industry professionals.
More information on this event is available on the Coaltrans website.
Editor’s Note: This article was originally published in Issue 2, 2015 of American Coal Magazine (pg. 30-32)
In February 2011, I spoke at the Fifth Annual Energy Forum and Expo in Grand Junction, CO. As I ran through my presentation, I listed some of the pressures being applied to the U.S. coal industry. I also made sure to caution the many members of the natural gas industry that were present to restrain their schadenfreude over the coal industry’s current challenges. In the best of scenarios, I warned, they would have only a few short years before they began to experience the same destructive attacks.
Reid Wilson is confirmed as the Luncheon Keynote speaker at the 2015 Coal Trading Conference. Reid is the chief political correspondent and Congress editor for Morning Consult. He is an expert in spotting political trends as they develop and forecasting election results long before the ballots are counted.
Don’t miss the “The Greatest Political Mind of Our Time” (as named by Comedy Central in 2012).
I continue to receive almost weekly requests from reporters who are asking for comment on California passing a law to force their pension plans to divest from coal. To help speed the process, I prepared a statement on the issue and have reprinted it here for Coalblog readers.
Regarding the issue of California passing SB 185, a law which requires state pension plans (CalPERS and CalSTRS) to divest from their coal holdings.
First off, with noted environmentally-focused investors like George Soros and Tom Clarke investing in coal stocks and coal companies it seems that the state of California may actually be behind the trends on this issue.
Betsy Monseu’s recently published article in the Electricity Journal is freely available via the link below until September 22nd. We encourage everyone to check it out while it is still available.
Coal is under pressure in the United States, and not the natural kind of pressure involved in its creation from plant material. The pressure coal is under today is of a distinctly unnatural kind, shaped by an increasingly far-reaching and unbalanced regulatory agenda. The energy playing field continues to be tilted away from coal, a primary target of that agenda. Yet coal’s leading position as a critical fuel in the electricity marketplace continues. Though its share of that marketplace has generally been trending down over the past several years, coal remains the largest of any fuel source for electric generation. The Energy Information Administration (EIA) forecasts coal to retain the leading position in 2015 as well as over the longer term – including a 34 percent share in 2040.
From the Institute for Energy Research blog “EPA Goes After Coal Generating States in Final Carbon Plan.”
President Obama told America in 2008 that “if you want to build a coal plant, you can, but it will bankrupt you.” Now, he is using EPA’s ‘Clean Power Plan’ to hurt the states that generate power largely from coal—states that have the lowest electricity prices in the nation due to their inexpensive and dependable coal-fired generation.
Editor’s note: I just posted this piece as response to yet another article that plays the tired and cliched “dirty coal” game. It’s time for those of us who support American jobs, as well as affordable, secure, domestic AND clean energy to start speaking up. – We need both clean AND affordable Energy.
Coal can and should play a pivotal role in our energy supply
I was disheartened to see Nithin Coca’s recent article make use of the tired epithet “dirty coal” to attack an energy resource that – despite recent market difficulties – continues to provide this country with almost 40% of its electricity needs. Unfortunately the term “dirty coal” conveniently and simplistically ignores the real-life use of technology that makes coal increasingly clean today.