December 7, 2017 Read More →

‘Bearish Fundamentals’ Diminish Hopes for U.S. Coal-Export Renaissance

SNL:

The export market for U.S. thermal coal continues to gain strength but is likely only a temporary boost given the bearish long-term fundamentals for domestic consumption, several speakers at an industry event said Dec. 5.

Emily Medine, a principal with Energy Ventures Analysis, said at the American Coal Council’s annual Coal Trading Conference in New York that the thermal coal sector remains “challenged.”

Medine cited a surplus of natural gas, lack of growth in power demand, wind production tax credits, a strong U.S. dollar, continued regulatory pressure and public perception against coal.

The export market for U.S. thermal coal continues to gain strength but is likely only a temporary boost given the bearish long-term fundamentals for domestic consumption, several speakers at an industry event said Dec. 5.

Emily Medine, a principal with Energy Ventures Analysis, said at the American Coal Council’s annual Coal Trading Conference in New York that the thermal coal sector remains “challenged.”

Medine cited a surplus of natural gas, lack of growth in power demand, wind production tax credits, a strong U.S. dollar, continued regulatory pressure and public perception against coal.

Paul Bailey, president and CEO of the American Coalition for Clean Coal Electricity, highlighted declining load growth as among the many challenges facing the thermal coal sector.

“In the old days, the pie got larger and everyone’s piece got larger, but the pie is not getting larger, so load growth is really having a profound effect on the coal fleet,” Bailey said.

More: ($) Bearish fundamentals dim long-term prospects for coal, industry players say

 

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