NEW YORK (
) -- 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."
, 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.
, quoting the
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"
, the framing shifting with the times.
In the 1970s the ads focused on foreign oil producers, in the 1980s they fought acid rain regulation, and over the last decade they've claimed coal has in fact been
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.
has declared bankruptcy. Of the other industry players only
(CNX - Get Report)
, which also produces natural gas, is near break-even.
The rest --
Alpha Natural Resources
(ANR - Get Report)
(ACI - Get Report)
-- 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
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
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 plant is due to be completed next May, but the head of the unit building the plant has just retired, amid cost concerns,
The Atlanta Business Chronicle reports,
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.