Sunday, October 17, 2021

US Coal "Roars Back" Under Biden Unlike Trump

U.S. utilities are transitioning to coal because soaring natural gas prices make it uneconomic to produce electricity.

"We're seeing the essential nature of coal come roaring back." The Energy Information Administration forecasts U.S. utilities are estimated to burn 536.9 million short tons of thermal coal, up from 436.5 million in 2020.

Ernie Thrasher, CEO of Xcoal Energy & Resources, the largest U.S. exporter of fuel, said demand for coal will remain robust well into 2022.

"The goal of policy, if you listen to what's being said in Western countries in the context of climate discussions, is not only to stop building new coal but to eliminate the existing capacity to burn coal," Book said.

A pure-play coal company that is already benefiting from the demand surge and rising prices is Peabody Energy Corporation.

As cooler weather fast approaches, the company may see increased demand for its thermal coal that utility companies use to produce electricity.

"Make Coal Great Again," former President Trump used to tell crowds a few years back at rallies in West Virginia.

https://www.zerohedge.com/commodities/us-coal-booms-under-biden-unlike-trump 

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