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Natural Gas is Killing Coal

There’s no denying that natural gas is revolutionizing our energy economy, but few believed it could deal such a swift death blow to coal, the commodity that brought us into the Industrial Revolution and has been our backbone ever since. But the signs are irrefutable. Here’s what you need to know. A historic battle Coal and natural gas have been going at it for a while. Traditionally, these were actually complementary energy sources. As a cheaper fuel that was more difficult to manage, coal-fired generation plants were the “slow burners” that kept our energy capacity steady throughout the day. Relatively expensive and more malleable natural gas-fired power plants served as the “pinch hitters” that powered up during peak hours when we needed that extra bit of juice. Today, things look a bit different. Natural gas and coal are no longer complements: natural gas has become a substitute for coal. […]

Posted On : Published By : Tom Whipple
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Coal mining must continue, no matter what the human costs

This post was inspired by a recent article about coal mining in India by David Rose in the Guardian about coal mining. In India, people are dying in the streets because of excessive heat caused by global warming, but Rose reports that “ …across a broad range of Delhi politicians and policymakers there is near unanimity. There is, they say, simply no possibility that at this stage in its development India will agree to any form of emissions cap, let alone a cut. ” In other words, coal mining must continue in the name of economic growth, no matter what the human costs.I think it is hard to see a more evident example of the senility of the world’s elites. It is, unfortunately, not something that pertains only to India. Elites all over the world seem to be nearly totally blind to the desperate situation in which we all […]

Posted On : Published By : Tom Whipple
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Huge drop in West Virginia coal production forecast

CHARLESTON, W.Va. (AP) — West Virginia University researchers predict that state coal production will drop 39 percent compared with the industry’s last high point in 2008 – less-than-encouraging news for more than 1,800 coal miners who learned last week they would likely lose their jobs. Already-struggling southern coalfield counties would bear the brunt of the industry’s downturn, with an expected 29 percent production drop in 2035, compared to 2014. The dwindling coal industry has ravaged that region with job losses, and has even necessitated cuts to government services. The report rattles off a combination of familiar economic, geological and regulatory challenges: weak export demand; less use of coal for electricity amid competition from natural gas; changes in emissions rules for power plants; and worsening geological conditions that make extracting southern West Virginia coal less productive. The dismal projections don’t even account for a federal proposal to stem carbon emissions […]

Posted On : Published By : Tom Whipple
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Coal-Fired Power Plant Loses Steam

ENLARGE Southern Co.’s $6.2 billion coal-fired power plant near Meridian, Miss., lost a utility partner, raising the stakes for the project and resulting in a request for higher power rates to help pay for the project. Photo: GARY TRAMONTINA/BLOOMBERG NEWS The future of the most expensive fossil-fuel power plant built in the U.S. is facing new pressures after a Mississippi utility backed out of its commitment to the clean-coal project. South Mississippi Electric Power Association, which furnishes power to smaller utilities in the state, dropped its plan to buy a $600 million, 15% stake in the project spearheaded by Atlanta-based Southern Co. SO -0.35 % , citing construction delays. Southern, in turn, notified state regulators that it may have to raise electricity rates for Mississippi power customers by 41%, or $37 a month for the typical household, to pay for the project. South Mississippi Electric Power’s move deals a […]

Posted On : Published By : Tom Whipple
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Coal’s Worst Fears Affirmed in Analysis of Obama Climate Plan

Emissions rise as a U.S. flag flies at a coal-fired power plant in Winfield, West Virginia. Photographer: Luke Sharrett/Bloomberg A new government analysis of President Barack Obama’s signature effort to fight climate change affirms what critics suspected: the proposal could further weaken an already battered coal industry. Electricity generation from the carbon-intensive fossil fuel would fall by 90 gigawatts, more than twice the decline government analysts had predicted as recently as April, according to a report released Friday by the Energy Information Administration. Most of the coal-plant closures would come by 2020, when the Environmental Protection Agency’s proposal to cut carbon dioxide emissions would kick in. Consumers may also take a hit as electricity prices would increase as much as 7 percent on average by 2025, partly because of the costs of building new power plants. “In short, EIA confirms EPA’s rule is all pain, no gain — a […]

Posted On : Published By : Tom Whipple
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Alpha Natural to Lay Off 439 at West Virginia Coal Mine

By John W. Miller Coal miner Alpha Natural Resources Inc. on Friday said it plans to lay off 439 miners at a mine in south-central West Virginia. Murray Energy Corp., another big Appalachian miner, is planning to lay off around 1,800 workers, mostly in Ohio and West Virginia, the Wall Street Journal reported Thursday. Like Murray, Bristol, Va.-based Alpha is reeling from competition from the natural gas industry and its less expensive energy for power plants, and from a global coal glut and tougher environmental regulations in the U.S. The layoffs will affect workers at the Camp Creek underground coal mine and processing plant in Camp Creek, W.Va. In addition, the company said it had downsized its workforce at three other Alpha-affiliated mines in Kentucky and Virginia, affecting 71 workers. Alpha Chairman and Chief Executive Kevin Crutchfield called current market conditions "an unprecedented time in the coal industry." His […]

Posted On : Published By : Tom Whipple
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Murray Energy to Lay Off Around 1,800 Workers

ENLARGE The planned layoffs at Murray Energy will come mostly from its mines in West Virginia and Ohio. Photo: Jeff Swensen for The Wall Street for The Wall Street Journal Coal miner Murray Energy Corp. is set to announce layoffs of around 1,800 workers at nine locations on Friday, according to a person familiar with the matter, dealing another blow to the coal-mining industry in Appalachia. The planned layoffs, which represent about 21% of Murray’s workforce, will come largely at mines in West Virginia and Ohio, a region already reeling from the impact of abundant natural gas and a global coal glut. Robert Murray, the 75-year-old founder and chief executive of the company, made the decision Wednesday after a 12-hour meeting with operations managers, according to the person familiar with the matter. The company decided to make much bigger cuts than it had previously been considering because of growing […]

Posted On : Published By : Tom Whipple
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US weekly coal carloads drop to lowest total in 120 weeks: AAR

US railroads originated a new year-low volume of coal carloads for the week ending May 16, marking the lowest total in 120 weeks, according to data released Wednesday by the Association of American Railroads. The AAR reported a total of 93,664 coal carloads, down 27 carloads week over week from the previous year-low of 93,691. It was the lowest reported coal volume since 87,371 carloads in the final week of 2012 and sixth time in only 19 weeks this year that volumes fell below 100,000. The last year weekly coal carloads last fell below 100,000 more than six times was 1989 when it happened seven times, including in back-to-back intervals in the 51st and 52nd weeks of the year. Volumes did not fall below 100,000 in any week of 2014 and were sub- 100,000 in only three weeks in 2013. Weekly coal carload totals were below 100,000 five times […]

Posted On : Published By : Tom Whipple
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Duke To Build Natural Gas Power Plant, Retire Coal Plant

Duke said the new 650-megawatt plant will allow it to capitalize on low natural gas prices and cut its carbon dioxide emissions by about 60%. The plant would also be about 35% cheaper to operate than the 376-megawatt coal plant, based on current natural gas prices. Duke said the key parts of the plan, which also includes building a $320 million transmission substation in South Carolina, should be completed by the end of 2019. Charlotte, N.C.-based Duke operates utilities that serve more than seven million customers in the Carolinas, Florida, Indiana, Ohio and Kentucky. Duke in February agreed to settle charges that it violated the federal Clean Water Act by spilling coal ash into the Dan River in North Carolina last year, and said it would pay $102.2 million in penalties and restitution. The deal with federal investigators includes a five-year probationary period with a court-appointed monitor to ensure […]

Posted On : Published By : Tom Whipple
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China Fires Away at Coal Power

Operators of coal-powered plants in China are in an uncomfortable position. ENLARGE Photo: Hao Tonqian/Xinhua/Zuma Press China is planning the biggest overhaul of its power industry in over a decade. And the scope for upheaval is biggest at companies that depend on coal, such as China Resources Power. In the past two months, China’s top planning body has published multiple documents stressing that market forces should decide how electricity is generated, transmitted and distributed. Specifics are still missing, and internal contradictions still rife—the documents, for instance, push renewable energy that currently survives by government rules that subvert market forces. But if enacted, these ideas would mark the next step in electricity reform after Beijing in 2002 cleaved transmission and distribution away from generation. In theory, that allowed generation companies to compete, though in practice Beijing dictated electricity prices. Now, the planners seem to want power generators free to set […]

Posted On : Published By : Tom Whipple