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Coal to challenge oil as main source of energy by 2017

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  • Coal to challenge oil as main source of energy by 2017

    sounds like someone is thinking beyond the frakking media orgasm...

    http://www.mining.com/coal-to-challe...by-2017-28770/


    Coal is likely to overtake oil as the world's main source of energy in the next five years, with potentially devastating effects in the environment, says the International Energy Agency (IEA).
    According to IEA, the globe's leading authority on energy economics, one of the prime factors behind the rise in coal use has been the massive increase in the use of shale gas in the U.S., which has a smaller carbon footprint than coal when burned.
    The decline of fuel consumption in the U.S. has helped to cut prices for coal globally, says the IEA report, which has made it more attractive even in Europe, where coal use was supposed to be discouraged by the emissions trading scheme.
    The Paris-based agency predicts the amount of coal burned around the world every year will increase by an additional 1.2 billion metric tons an amount roughly equivalent to the current annual coal consumption of the U.S. and Russia combined.
    *snip*

  • #2
    Re: Coal to challenge oil as main source of energy by 2017

    OK, I understand the rational: That cheap natural gas has crashed the price of coal. Then, since coal is cheap it will more likely be used by price sensitive emerging markets. Classic Econ 101. So far, so good. But if there is a glut a cheap NatGas then why won't emerging markets just use NatGas, if everything else is equal? Along this lines, one of the variables, I don't understand is how the transportation cost of heavy coal vs. the expense of liquifying and de-liquifying LNG compare.

    A brief glance at coal equities shows they are among the most unloved stocks out there right now. If this hypotheses proves out, it could be a great opportunity.
    Greg

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    • #3
      Re: Coal to challenge oil as main source of energy by 2017

      If KOL goes below 23, I'm going to start building a long position. I'm hoping for a little cliff action to knock the price down.

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      • #4
        Re: Coal to challenge oil as main source of energy by 2017

        Originally posted by BiscayneSunrise View Post
        OK, I understand the rational: That cheap natural gas has crashed the price of coal. Then, since coal is cheap it will more likely be used by price sensitive emerging markets. Classic Econ 101. So far, so good. But if there is a glut a cheap NatGas then why won't emerging markets just use NatGas, if everything else is equal? Along this lines, one of the variables, I don't understand is how the transportation cost of heavy coal vs. the expense of liquifying and de-liquifying LNG compare.

        A brief glance at coal equities shows they are among the most unloved stocks out there right now. If this hypotheses proves out, it could be a great opportunity.
        takes loads of money to build an LNG terminal, takes no money to use existing coal loading terminals to ship coal overseas.

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