{"id":28585,"date":"2015-07-15T04:45:46","date_gmt":"2015-07-15T02:45:46","guid":{"rendered":"http:\/\/www.w-t-w.org\/en\/?p=28585"},"modified":"2015-07-15T04:56:42","modified_gmt":"2015-07-15T02:56:42","slug":"28585","status":"publish","type":"post","link":"https:\/\/www.w-t-w.org\/en\/28585\/","title":{"rendered":"Entrepreneur Alert: The End of Coal"},"content":{"rendered":"
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Call it a one-two punch against coal. As global demand for U.S. coal exports continues to sag, domestic demand at power plants has been sliding as well.<\/div>\n
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For the first time ever, natural gas trumped coal as the top source of electric power generation in the U.S. In April, roughly 31 percent of electric power generation came from natural gas, whereas coal accounted for 30 percent.<\/p>\n

It’s a dramatic difference from April 2010, when coal accounted for 44 percent of the mix and natural gas just 22 percent.<\/p>\n

Coal prices have continued to crater this year, extending a years-long downward trend.<\/p>\n<\/div>\n<\/div>\n

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\"American<\/p>\n
American Electric Power’s coal-fired John E. Amos Power Plant in Winfield, West Virginia.<\/div>\n<\/div>\n
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This has been particularly true of coal mined in the eastern U.S. Since the start of the year, Central Appalachian coal (CAPP) futures have plunged nearly 15 percent to roughly $41 per ton; since their 2011 peak, prices have nearly halved. Tepid global economic growth, a stronger dollar, cheap natural gas and expanding U.S. regulations have pressured prices.<\/p>\n

Coal breaks down into two categories: utility coal, used to generate electricity at power plants in the U.S.; and export coal, for example, metallurgical coal used by China and developing countries to make steel.<\/p>\n

On Monday Chinese customs data showed coal imports in China plunged 33.7 percent in June versus a year earlier, thanks largely to sluggish demand. China is the largest consumer of the commodity in the world.<\/p>\n

U.S. coal exports have been in free fall for years as countries like Australia and Indonesia have provided supply to China more inexpensively. The stronger dollar is also making American supply pricier abroad.\u00a0Natural gas futures continue to trade below $3 per mmbtu, as the onshore drilling boom has increased production by 30 percent since 200<\/p>\n<\/div>\n<\/div>\n

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Coal, a historically high-margin business for railroads, accounted for nearly 19 percent of revenue for the Class I railroads in the U.S. in 2014.\u00a0Call it a one-two punch against coal. As global demand for U.S. coal exports continues to sag, domestic demand at power plants has been sliding as well.<\/p>\n

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Call it a one-two punch against coal. As global demand for U.S. coal exports continues to sag, domestic demand at power plants has been sliding as well. For the first time ever, natural gas trumped coal as the top source … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":22,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[13],"tags":[],"class_list":["post-28585","post","type-post","status-publish","format-standard","hentry","category-finance"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t