By Peter Galuszka
Let’s pause for a moment, catch our breath and realize what is really going on in the world of fossil fuel and climate change.
We’ve heard tons of loosely-based opinion from climate change deniers and drum beaters for the “War on Coal” crowd.
Here are two recent news items:
Coal baron Robert Murray is closing a $1.4 billion deal for Illinois Basin coal. The outspoken, labor-busting boss who figured prominently in the “War on Coal” campaign during the Mitt Romney presidential run has been picking up reserves in the robust Illinois Basin and in the distressed Appalachians.
His deal for 50 percent of Foresight Energy follows another he did in 2013 worth $3.5 billion to buy five Appalachian mines from Consol.
What does this mean? It shows that coal overall does have a future, especially in the high-sulfur Illinois Basin which has been rediscovered since utilities such as the Tennessee Valley Authority have been forced to use better scrubbing equipment. Illinois Basin can be twenty bucks a ton cheaper than Appalachian product. He also sees some future left in high coast Appalachian coal.
Stop a moment and consider: new environmental regs promote the use of cheaper coal. Now that coal may not be in the Central Appalachian area of southwest Virginia and West Virginia. But the magic of the market is favoring Illinois Basin product which is simply easier and cheaper to mine as is Powder River Basin coal in Wyoming and Montana.
A big problem with some of the commentators on this blog is that they fail to grasp that the U.S. coal industry is a lot bigger than little ole Virginny’s mines that started to play out decades ago. In their world view, their demise is the fault of the bad old federal government, not sharp barons like Murray who is a major contributor to (ahem) the Republican Party. Their brains seem trapped in a geographical warp zone where they cannot imagine things beyond the borders of the Old Dominion.
And while we are on the GOP, let’s consider George Schultz’s oped Sunday in The Washington Post. For those of you who may forget, he was Secretary of State under Ronald Reagan, the mystical president some of you love and miss dearly.
Schultz’s message is that human based climate change is here. So, stop denying it, get over it and get on with a carbon tax that worked to protect the ozone layer years ago. Yes, they actually worked that out back in Ronnie’s day and a tax and marker system to reduce fluorocarbons actually worked.
Not to add insult to injury, but consider what Schultz wrote: “For example, we can now produce electricity from the wind and sun at close to the same price we pay for electricity from other sources…”
Hmm. Sounds like a wild-eyed, irresponsible greenie. Someone tell Jim Bacon and Dominion Virginia Power.There are currently no comments highlighted.