There was also a record decline in global coal production, driven by low prices globally and then mining controls in China, which
saw coal markets rally.
Not exact matches
The payments would've bolstered the economics for
coal and nuclear generators who've
seen their profits and
market share squeezed by cheap gas and renewables.
According to S&P,
coal is poised to
see a shrinking share of the world's power generation
market, which could lead to some
coal reserves becoming stranded assets.
Yesterday (November 7), a subscriber e-mailed to ask why we were targeting
Market Vectors
Coal ($ KOL) for potential swing trade buy entry (click here to
see the original blog post explaining the technical trade setup).
Additionally, Trump has vowed to revitalise the
coal industry, but with abundant natural gas replacing
coal in electricity
markets, it is difficult to
see how he can accomplish this, without heavily subsidizing
coal --- a move that he would be at pains to justify.
As the
market for
coal goes global (
see our piece in Boston Review on this issue, September 2009) the future of global warming will depend on the interests in the countries that are least interested in slowing global warming.
In 1991, it was nothing more than a suggestion to invite science - based rebuttal back into an issue Al Gore and his friends hijacked with assertions that catastrophic man - caused global warming was settled science; a suggestion which came out of a leaked non-profit
coal association's public relations test
market campaign which was so obscure that practically no one ever
saw or heard about it.
Be sure to check out past posts on this issue to
see mines like this one compared with more familiar features like San Francisco, and get an idea how big the trains are that carry all this
coal to foreign
markets.
Q: The
coal industry has faced depressed prices over the last several years — what impact have you
seen on the
market due to that (focus on Africa)-- potential supply side deficit / inability...
In a world where carbon emissions will increasingly have to be constrained,
coal, as the dirtiest of the fossil fuels, is the energy asset most vulnerable to becoming «stranded» — the most vulnerable, in other words, to
seeing its
market value collapse well ahead of its previously anticipated useful life.
Enron was a a major natural gas distributor and
saw in Kyoto a means to suppress demand for
coal, natural gas's chief competitor in the electricity fuel
market.
Ending its report with the tagline «China is
coal,
coal is China,» the IEA
sees that country as determining the course of the global
coal market over the next five years.
The rapid displacement of
coal in the US domestic
market has
seen US producers try and switch to exporting, but that window is already starting to close.
The
market implications for this are significant, in that conventional generation is now fighting to maintain its share of a shrinking pie, and the U.S. Department of Energy's clumsy moves to find a rationale to bail out the
coal and nuclear industries can be
seen in this light.
Victories were
seen on four continents: in Bolivia a draconian response to protestors embarrassed the government, causing them to drop plans to build a road through Tipnis, an indigenous Amazonian reserve; in Myanmar, a nation not known for bowing to public demands, large protests pushed the government to cancel a massive Chinese hydroelectric project; in Borneo a three - year struggle to stop the construction of a
coal plant on the coast of the Coral Triangle ended in victory for activists; in Britain plans to privatize forests created such a public outcry that the government not only pulled back but also apologized; and in the U.S. civil disobedience and massive marches pressured the Obama Administration to delay a decision on the controversial Keystone XL pipeline, which would bring tar sands from Canada to a global
market.
China could become a net exporter of
coal again before 2020, which would
see the seaborne thermal
coal market weakened again, the report finds.
This is normal for a commodity like
coal and has been
seen in other commodity
markets in recent years too.
This move comes at an opportune time when
coal prices have dropped by 30 to 40 % since the summer, but GLF points out an earlier post (
see finding # 4) on a recent MIT
coal report that suggests the upstream
coal industry has already moved towards a de facto
market price system.
I
see I missed discussing «how the
market works» to the degree needed to explain the complete problem with
coal, though I touched on it when I mentioned the cost advantage of
coal.
As to how, have you
seen that
coal spot
market prices have tripled for most
markets in the last year?
Right now, our cap and trade program is forced to assign unspecified
market purchases a carbon cost that reflects a lower carbon content than
coal because we can't actually
see which plants are providing that generation.
It's because Big Oil / Gas is determined to increase its
market share in the electricity generation
market at the expense of
coal and nuclear, and
sees wind and solar as a strategem to get the environmentalist useful idiots on board.