Not Dead Yet....

Philadelphia, PA: Contrary to some recent press articles, the coal industry in general, and the anthracite coal industry in particular, are not yet dead.

Story: http://goo.gl/dGqQFp

A global economic slowdown coupled with changes in the power generation matrix in the United States are the major contributing factors in reduced coal production. While the effect of global economies on the coal industry are cyclical and recoverable, the changes in the power production matrix are transformative and will require a recalibration of our industry.

Coal will survive, albeit at reduced production rates. Some are predicting a return to 1980's production levels which is still substantial and economically important to the nation. Presently, mining and processing capacities far exceed the immediate delivery markets and this is unlikely to change for the next 24 months. How will we rightsize to meet this challenge?

Rightsizing of the industry will probably follow the arc of the 1982-1983 downturn which idled many of the higher cost mines and advanced the closing of older mines which were too inefficient to keep in production. Some coal qualities will fall from favor while proven qualities such as Pittsburgh No. 8 and low volatile coals will maintain their niches in the market mix.

We will rightsize. We will re-calibrate. And, we will survive. As we always do.

So, let's stop chipping away at that epitaph for now.

Coal Under Siege

 

Under Siege....

Each day seems to bring a new setback for the coal industry.

Financial institutions announce their intentions tocease investing in, or financing coal related projects. Mining companies announce cutbacks in productionor, worse still, layoffs and terminations of their labor force. Global economic indicators point to yet another quarter of decreased industrial production and yet another coal-fired power plant is scheduled for decommissioning.

Advances in clean coal technology, carbon capture and storage and full lifecycle fuel management are made moot by a mob-like mentality that blames coal for every ill that ails us. Few seem willing to support a planned and graceful transition of coal in the energy mix over the next sixty or so years.

The giddiness surrounding our newfound shale gas resources is premature. Production curves from early Marcellus wells have already been scaled back and this should temper our rush to gas-fired power plants. And besides, natural gas is still fossil fuel no matter how many public relations companies are assigned to say otherwise.

We need a strategy and a plan to survive what has become a siege. The barbarians are at the gate.



#coal   #shalegas   #marcellus   #layoffs   #mine  #mining   #naturalgas