Can The Coal Industry Be Saved?

1806 WordsApr 28, 20178 Pages
Douglas Carey Evan Schatz Matt McVicker Energy Markets 3/25/2017 Can the Coal Industry be Saved Introduction The coal industry has shaped our world for over 200 years. Its need is based on the cheap price of energy that it provides to its consumer. Today, coal is still cheap in price and a reliable product for its consumers, but it provides harmful CO2 emissions to our planet and can be expensive to build new plants. Still the coal industry is something that will never go away. It will continue to decline as renewables and other energy resources come into play for specific developed nations, but will never be taken completely from these economies and younger nations. Coal Background The coal industry has provided energy to the world…show more content…
Most countries focus on surface mining because it allows for easy access to coal and it is more cost effective. It is providing cheap energy for countries like China, India, and other growing economies, especially third world nations. This will access to cheap fuel is a strong catalysts for these countries to emerge as first world nations (U.S Department of Energy 1). Even the UN who is working to decrease the global emissions of the planet is still open to allowing third world countries to take the opportunity to use coal and other fossil fuels. Since there are so many emerging and 3rd world countries, the likelihood is that coal may decrease in some areas, but have new markets to enter and be used in. Even with renewables, solar and wind, hitting record lows in expenses is still no match for coal plants in the long run. Especially since there is a strong need for coal to continue as the base load in these emerging economies. Due to this momentum, we see a strong movement in the coal industry as it continues to progress. Industry Outlook Since the coal industry has been facing weakening demand from major importers and users, combined with a surplus of coal, the coal industry is struggling to stay competitive. In recent years there has been a surplus of coal as supply outpaced demand (Cosgrove 1). In 2017 and beyond, much of the future of coal is dependant on demand from the seaborne region which consists of
Open Document