Even King Coal isn’t adverse to the effects of the dismal
economy. U.S. stock prices for the energy behemoth have been down 30% in just three
weeks. Coal isn’t just losing market stability, it may be losing market share
to natural gas, which is impeding the demand for coal nationwide.
According to
the Energy Information Administration, natural gas and other factors pushed the
share of electricity generated by coal to the lowest level in 30 years.
The Wall Street Journal said that analysts expect a permanent
shift toward natural gas, which is not without its problems. Coal fueled 46% of
the national electricity in the first quarter of the year, which is down six points
since 2008. These numbers may be in decline, but the overall amount of coal
mined is still expected to be around 1 billion tons.
Coal is trying to curb
this downfall with the consolidation of three companies and through exports.
Though mostly from Australia, China imports reached 17 million tons in July, and
consumption in that month was up 19%.
In a win for regulators, rules restricting impacts to
streams from mining have also put pressure on the industry. If regulations
increase or remain at acceptable standards, and with a push toward renewable
energy, coal just may become a thing of the past, or reserved for the naughty
during holidays.
By Peter Browning
By Peter Browning
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