About yesterday’s BMO Report which sent the sector reeling: Business Insider.
Very interesting, and the opposite of conventional wisdom: Key Facts: Plant Retirements Are A Trickle In 2012 & New Plants Outpace 2 to 1 Retirements: John Hanger
“Coal production at Peabody Energy Corp.’s massive North Antelope Rochelle mine in the Wyoming end of the Powder River Basin dropped nearly 12% in the second quarter…” SNL
European coal is hanging in there: Platts.
“Between 1985 and 2011, global electricity generation increased by about 450 terawatt-hours per year. That’s the equivalent of adding about one Brazil (which used 485 terawatt-hours of electricity in 2010) to the electricity sector every year. And the International Energy Agency expects global electricity use to continue growing by about one Brazil per year through 2035.” Manhattan Institute
The greenie’s have an uphill battle trying to slow U.S. coal exports. Peabody and Kinder Morgan inked their deal: Marketwatch. “The race to export Montana and Wyoming coal through Northwest ports to Asia could have a big payoff. Developers of six terminals pledge private port investments topping $2 billion if the projects reach full capacity.” Oregon Live
Well then, perhaps coal assets are worth something after all. Peabody (BTU) is the largest privately sector coal company and sports a modest $6 billion market cap. Australia’s recent minerals mining tax catapulted them to a high cost producer status, yet some kid my age is working on a $5.4 billion dollar deal down under. Bloomberg
Interesting though not actionable: U.S. power by state: America’s Power