For investors, these trends suggest that big listed coal companies may come back into favor. CEOs of U.S.-based coal companies are bullish on the demand for exporting their product, and some - such as Arch Coal CEO John Eaves - believe U.S. natural gas prices will soon rise and make coal look more attractive domestically as well. But the stocks of the major coal players remain depressed, due in large part to the U.S. natural gas glut and global economic slowdown (which lessens energy demand):
So things may be looking up for these coal producers in the near to mid-term. But for planet earth, not so much. In her introduction to the report, IEA Executive Director Maria van der Hoeven notes that the report's forecasts are based on a disturbing reality - that carbon capture and sequestration (CCS) will not be available during the bullish outlook period for coal:
CCS technologies are not taking off as once expected, which means CO2 emissions will keep growing substantially. Without progress in CCS, and if other countries cannot replicate the US experience and reduce coal demand, coal faces the risk of a potential climate policy backlash.Translation for those of us not working in the coal industry: Gulp.
Covestor Ltd. is a registered investment advisor. Covestor licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for Covestor models available upon request. Additional important disclosures available at http://site.covestor.com/help/disclosures. For information about Covestor and its services, go to http://covestor.com or contact Covestor Client Services at (866) 825-3005, x703.The post Disturbing global warming news: IEA expects coal burning to surge this decade appeared first on Smarter Investing.
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