NEW YORK (TheStreet) -- Increase efficiency, increase renewable energy production, increase production of oil and natural gas, and something has to get squeezed out, right?
That something is coal.
Over the last few years coal has been losing its U.S. power plant customers, and now export markets are weakening, creating what Michael Forbes of Marketintellegencer calls a "downward spiral."
BHP Billiton (BHP), the Australian company that is the only industry player to be opening new mines, is down 20% so far this year, and the company's Web site is now emphasizing work on oil and sustainability.Mining.Com, quoting the Associated Press, says that Jim Justice, a coal billionaire ranked 292 on the Forbes 400, is having trouble paying his bills and says he now calls the coal business "terrible." The industry has seen this coming from a long way away, and has been doing all it could to prevent it. Producers have been advertising the idea of "clean coal" since 1921, the framing shifting with the times. "cleaned." Coal also competes in Washington. A report in the Motley Fool estimates the industry's lobbying budget at $17 million a year. But it hasn't worked. Patriot Coal has declared bankruptcy. Of the other industry players only Consol Energy (CNX), which also produces natural gas, is near break-even. (ANR), Arch Coal (ACI), and Peabody Energy (BTU) -- are all down at least 35% year to date. There are ways to reduce coal's carbon cost, by turning it into a slurry, as Wikipedia explains, and Pakistan is among the markets trying this, writes PakObserver. But that just reduces the carbon cost, it doesn't get rid of it. For that, you'll want to go to Kemper County, Miss., where Southern Co. (SO) has put $4.3 billion, some of that government money, into turning low-grade coal into gas and selling the carbon dioxide to oil drillers for use in fracking. The Atlanta Business Chronicle reports, quoting The Wall Street Journal. This has industry advocates like Larry Bell, writing for Forbes, livid and unintentionally funny. He's upset that the Administration went along with the Kemper experiment, noting that it makes coal uncompetitive, but eventually he gets back on track by attacking the science of climate change.
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