Arch Coal

IEEFA Research

IEEFA U.S. Coal Outlook 2017: Short-Term Gains Muted by Prevailing Weaknesses in Fundamentals

IEEFA U.S. Coal Outlook 2017: Short-Term Gains Muted by Prevailing Weaknesses in Fundamentals

Production Declining by as Much as 40 Million Tons; Prices Failing to Benefit Shareholders or Stimulate New Investment; Anemic Exports; Little or No Gain From Regulatory Relief; Increasingly Dim Employment Prospects

We’re out this morning with our annual outlook for U.S. coal markets, and the picture isn’t pretty. We see the potential for some short-lived strength in the current uptick for coal producers but the title of our assessment sums up the larger view: “Short-Term Gains Will Be Muted by Prevailing Weaknesses in Fundamentals.” You can […]

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As Texas Coal-Fired Power Plants Close, Powder River Basin Mines Are Losing Their Largest Customers

Trends Will Force Closures and Complicate Efforts by Alpha Natural Resources, Arch Coal and Peabody Energy to Work Their Way Out of Bankruptcy

CLEVELAND, Aug. 3, 2016 (IEEFA.org) — The Institute for Energy Economics and Financial Analysis today published a report detailing how Powder River Basin coal producers are losing their largest customers as Texas power producers turn increasingly to other sources of energy. The report, “Texas’ Outsize Role in the Decline of the Powder River Basin Coal […]

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The Federal Government’s Coal-Leasing Program Is Broken: Here’s How to Fix It

The Federal Government’s Coal-Leasing Program Is Broken: Here’s How to Fix It

Appoint a Price-Setting Commission; Ban Exports; Cancel Some Leases; Eliminate Self-Bonding; Mandate Set-Asides for Mine Clean-up and Miner Pensions; Require Twice-a-Year Audits; Assume Smaller Markets

It’s time for the U.S. to modernize how it manages its publicly owned coal reserves. That’s the essence of comments we’ve filed today with the Department of the Interior as it begins a review of its federal coal-leasing program in the Powder River Basin, a program that has been mismanaged for years at taxpayer expense […]

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For U.S. Coal, Market Realities Grow Increasingly Harsh

For U.S. Coal, Market Realities Grow Increasingly Harsh

Debt Hurdles, Reclamation and Pension Challenges, Abandonment by Hedge Funds

We distributed a briefing note this week that delves into some of the many pressing difficulties confronting U.S. coal producers. In the note (“Struggling U.S. Coal Companies Face Debt Hurdles, Complications From Reclamation and Pension Obligations, Pressure from Hedge Funds”) we talk about how the cumulative impacts of the industry’s many mounting liabilities—reclamation costs, pension […]

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Report – No Need for New U.S. Coal Ports: Data Shows Oversupply in Capacity

Report – No Need for New U.S. Coal Ports: Data Shows Oversupply in Capacity

No Need for New U.S. Coal Ports: Data Shows Oversupply in Capacity (pdf) By Tom Sanzillo, Director of Finance, IEEFA  

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Report: 20 Fourth-Quarter Questions for Powder River Basin Coal Producers

Report: 20 Fourth-Quarter Questions for Powder River Basin Coal Producers

20 Fourth-Quarter Questions for Powder River Basin Coal Producers (pdf) By Tom Sanzillo, Director of Finance, Institute for Energy Economics and Financial Analysis

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Report – NYC and NYS pension funds should divest coal stocks: A shrinking industry, weak upside, and wrong on climate change

Report – NYC and NYS pension funds should divest coal stocks: A shrinking industry, weak upside, and wrong on climate change

NYC and NYS pension funds should divest coal stocks: A shrinking industry, weak upside, and wrong on climate change (pdf)

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Briefing note: Fossil fuels, energy transition, and risk

Briefing note: Fossil fuels, energy transition, and risk

Briefing note: Fossil fuels, energy transition, and risk (pdf) By Tim Buckley,  Director of Energy Resource Studies, Australasia, IEEFA

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More News and Commentary

‘Coal Investors Unlikely to Support Deals or Growth Projects’

Platts: Publicly traded US coal producers aren’t likely to splurge on acquisitions or growth projects in the coming years, and instead should distribute their earnings to shareholders, an equity analyst report said Tuesday. Seaport Global’s Mark Levin said a number of producers, including Peabody Energy, Arch Coal and Contura Energy, have emerged from reorganization with […]

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With Shutdown of Colorado Plant, Peabody and Arch Lose a Key Customer

SNL: Peabody Energy Corp. and Arch Coal Inc. have lost a large customer with the announcement that Xcel Energy Inc. has burned its last coal at a Colorado power plant. Xcel has planned to switch from coal to gas at its Valmont plant in the Boulder area since at least 2010, when the state passed […]

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Congressional Democrats Move to Block U.S. Coal Industry’s ‘Self-Bonding’

SNL: A new bill from Democrats in the U.S. House and Senate aims to reform federal laws that allow the coal sector to self-bond its environmental liabilities. Sen. Maria Cantwell, D-Wash., and Rep. Matt Cartwright, D-Penn., joined other colleagues in the House and Senate to introduce the Coal Cleanup Taxpayer Protection Act. “As coal companies […]

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U.S. Coal Industry: ‘Prospects for Jobs Are Weak’

The Washington Post: The battered U.S. coal industry is showing flickering signs of life. Yet the prognosis for Big Coal remains dim. Coal prices are about double what they were a year ago. Rail car deliveries of coal are up 16 percent this year. The more than 50 coal mining firms that went bankrupt over […]

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U.S. Coal Producers Step Up Campaign to Rebrand the Industry as a ‘Clean Player’

From the New York Times: Seeking to shore up their struggling industry, the coal producers are voicing greater concern about greenhouse gas emissions. Their goal is to frame a new image for coal as a contributor, not an obstacle, to a clean-energy future — an image intended to foster their legislative agenda. Executives of the […]

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Op-Ed: Taxpayers Gain if Federal Coal-Lease Reforms Stand

Meredith Fowlie for The Conversation: The federal coal program is supposed to manage vast federally owned coal reserves, which account for more than 40 percent of U.S. coal production, “for the benefit of current and future generations.” But the program has, for a long time, been criticized for selling taxpayers short. For this and other […]

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IEEFA U.S. Coal Outlook 2017: Short-Term Gains Muted by Prevailing Weaknesses in Fundamentals
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IEEFA U.S. Coal Outlook 2017: Short-Term Gains Muted by Prevailing Weaknesses in Fundamentals

Production Declining by as Much as 40 Million Tons; Prices Failing to Benefit Shareholders or Stimulate New Investment; Anemic Exports; Little or No Gain From Regulatory Relief; Increasingly Dim Employment Prospects

We’re out this morning with our annual outlook for U.S. coal markets, and the picture isn’t pretty. We see the potential for some short-lived strength in the current uptick for coal producers but the title of our assessment sums up the larger view: “Short-Term Gains Will Be Muted by Prevailing Weaknesses in Fundamentals.” You can […]

Read More →

IEEFA U.S. Coal Outlook 2017: Short-Term Gains Muted by Prevailing Weaknesses in Fundamentals

Production to Decline by as Much as 40 Million Tons; Prices Will Not  Benefit Shareholders or Stimulate New Investment; Anemic Exports; Few Gains From Regulatory Relief; Increasingly Dim Employment Prospects

Jan. 19, 2016 (IEEFA.org) – The Institute for Energy Economics and Financial Analysis (IEEFA) today published its U.S. Coal Outlook 2017 in which it describes an industry like to decline further this year, though at a slower pace than in 2016. The report—“IEEFA U.S. Coal Outlook 2017:  Short-Term Gains Will Be Muted by Prevailing Weaknesses […]

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Arch Seeks Colorado Mine Expansion in Face of Declining Coal Markets

Dan Elliott for the Associated Press: Colorado’s flagging coal industry got a glimmer of hope when the federal government removed one obstacle to expanding the state’s largest mine, but it isn’t a done deal, and further court challenges are likely. Arch Coal Inc. wants to extend its underground West Elk Mine into untapped federal coal […]

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Resistance, Still, to Acknowledging Climate Risk Among Major Fossil-Fuel Companies

John H. Cushman Jr. for InsideClimate News: A methodical review of the world’s dominant fossil fuel producers has documented their poor performance—in some cases, egregious failure— in taking responsibility for their emissions of greenhouse gases and moving effectively to confront climate change. “None of them has made a clean break from disinformation on climate science […]

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