Almost half of the US coal production is at or near the bankruptcy level. DiChristopher writes that Trump faces a difficult obstacle to fulfilling his promises of achieving clean coal production lasting a thousand years and bringing coal miners back to work. He puts forward the position of the International Energy Agency, which argues that the coal companies in the US will have to keep cutting prodution in the face of falling demand, global oversupply and decreasing prices. Global market forces such as the availability of the plentiful and lesser costing alternative in natural gas will probably succeed in driving out coal production from the US.
There is a possibility of the coal companies going back to profitable levels but only after self-destructive debt restructuring. Even then, coal workers will eventually have to settle for lowered wages due to the cut-throat competition in global markets. US coal exports are already in a crisis mode, with a 32% decrease during the first half of 2016. Moreover, global coal demand is expected to increase by just 0.2% through to 2040.
There is a possibility of the coal companies going back to profitable levels but only after self-destructive debt restructuring. Even then, coal workers will eventually have to settle for lowered wages due to the cut-throat competition in global markets. US coal exports are already in a crisis mode, with a 32% decrease during the first half of 2016. Moreover, global coal demand is expected to increase by just 0.2% through to 2040.
Though he may have this goal in mind, it is one that is very unlikely. As the article mentions, nearly half of the U.S. coal production is wrapped up in bankruptcy right now. If the coal companies are going to make a comeback from this, some serious measures will need to be taken.
ReplyDeleteCoal is a major energy source, that is a fact and one that is hard to ignore. The big question is if he can make it cleaner, as well as making mining safer? I guess we'll find out if he has his way.
ReplyDeleteI have to agree that it would be difficult to bring back up coal production, especially due to the state these companies are in right now, and the world seems to be moving towards cleaner and "greener" energy on the international scene.'
ReplyDeleteThis "promise" from Trump is one that was made to bring people to the polls. Many leaders across the energy sector have continued to state that coal is a form of energy of the past and after cost-benefit analysis make no sense in revitalizing.
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