Date: 2024-05-15 Page is: DBtxt003.php txt00009789 | |||||||||
Energy | |||||||||
Burgess COMMENTARY | |||||||||
U.S. Coal Industry Hurt by Market Conditions; Now Hinges on Regulations
Coal has long reigned as the leading energy source for U.S. electricity generation, but structural changes in U.S. energy markets, brought on by technological innovations and new regulatory initiatives, have called into question the future of the coal industry. For over a century, the coal industry has provided the lifeblood for American progress, fueling the process of industrialization and powering growing cities. However, over the past five years, market forces and major EPA regulations, particularly the Clean Power Plan, have sent the U.S. coal industry into disarray. The Dow Jones Coal Index, which comprises the shares of major coal producers, has fallen by over 80 percent in the last four years, and dozens of companies have entered bankruptcy, including major companies like James River Coal and Patriot Coal. Surging natural gas production has caused natural gas prices to plummet, squeezing coal’s role in the U.S. power generation mix, while renewable energy resources are also incrementally increasing their share of the U.S. portfolio. Meanwhile, a string of laws and regulations have caused investors to lose faith in the long-term viability of coal in the United States. EnerKnol’s 23-page report analyzes the potential policy and industry outcomes related to the challenging economic and regulatory landscape that the U.S. coal industry faces |