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Expert: Demand for coal part of second Industrial Revolution
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The senior vice president of governmental relations for the largest privately owned coal company in the world put it simply.
“Coal is still king.”
Frederick Palmer, from Peabody Energy, of St. Louis, Mo., who is also chairman of coal policy for the National Coal Council, said that statement does apply to the anthracite region.
“The anthracite coal in Pennsylvania has a high value to the state, to the country, to owners and to the world,” Palmer said in a telephone interview Friday.
A boom in steel production in China and Southeast Asia is fostering the demand for coal all over the globe, something Palmer calls the “Industrial Revolution II.”
More coal demand and production will mean more mines, he added, not unlike what is happening with Keystone Anthracite Corp., which will soon ask the state for permission to open a new strip mine in Zerbe Township.
“The energy is in the coal,” Palmer said.
Coal has the biggest and most ubiquitous supply, and it is not a question of if it will have a resurgence, but when, Palmer said.
He said steel producers around the world may return to the coal business. In the past, U.S. steel companies owned many coal mines because of coal’s use in producing steel.
Steve Bartos, director for the Northumberland County Planning Commission, said there have been several foreign investors in the anthracite region looking into the purchase of coal. Whether or not they use the coal directly or sell it, Palmer said, the economic effect is the same.
“It is not shocking that steel companies are looking to make major purchases of metallurgical coal that’s in the ground,” he said. “It will extend in the future for any type of coal.”
Fastest growing fuel
Palmer said the mining taking place for more than a century in the central Appalachian region, primarily southwestern Virginia, may decline, which could mean even more opportunity for northern Appalachia, the Midwest and further west. “We have a lot of coal,” Palmer said.
Despite economic problems plaguing the country, Palmer said the demand for coal will remain strong everywhere.
“It is the fastest growing fuel,” he said. “Coal is number one and will remain there.”
Describing the boon in coal, he said it’s “more than a thunderstorm, but it’s not quite a hurricane.”
Coal production was fueled by the Industrial Revolution, and vice versa, but it became much less important after oil, natural gas and nuclear power entered the forefront, Palmer said.
Today, vast improvements that have been made in environmental performance in the production and process of utilizing coal, although it still has many detractors worldwide who blame its greenhouses gases for global warming.
Increased exportation
Palmer said the U.S. is entering a new stage of increased coal exportation. In the late 1970s and early 1980s, the U.S. exported 150 millions tons of coal, but that market cooled dramatically, Palmer said.
While it never fully disappeared, the amount of coal exported dipped to as low as 40 million tons.
This year, 90 million tons will be exported, and next year predictions place that number at more than 100 million tons.
“Coal exports are becoming more and more important,” Palmer said.
Peabody also owns mines in Australia, the world’s largest coal exporter.
The global demand will take Australia’s 300-million ton exportation to more than 500 million tons, Palmer said.
China, which produces 2.5 billion tons of coal, has been exporting less than that amount because of its own demand. That, in turn, is increasing the global demand.
In fact, China has become a net importer, Palmer said.
“They buy more coal, more is delivered and they will need more coal,” he said.
And China is not alone. India and even Europeans countries, including England, Germany and Italy, need more, said Barry Worthington, executive director of the U.S. Energy Association, Washington, D.C.
“Global demand for coal has and will likely continue to increase,” Worthington said through an e-mail this week. “As energy security and economic concerns increase, coal will be looked to for less price volatility and more secure supply than alternatives for electric power production,” he said.
(from www.readingrailroad.org)
Anthracite Discovered
The first discovery of coal in eastern Pennsylvania can supposedly be traced back well over 200 years ago to Schuylkill County. Legend has it that in 1790 a woodsman and trapper named Necho Allen came to the area in search of timber and game. One night he built his campfire beneath a shelter rock and fell asleep. During the predawn hours he was awakened by a glowing light and great heat coming from the ground. Necho, to his astonishment, had discovered coal; his fire had not been built on rock, but on an outcropping of anthracite.
“Coal is still king.”
Frederick Palmer, from Peabody Energy, of St. Louis, Mo., who is also chairman of coal policy for the National Coal Council, said that statement does apply to the anthracite region.
“The anthracite coal in Pennsylvania has a high value to the state, to the country, to owners and to the world,” Palmer said in a telephone interview Friday.
A boom in steel production in China and Southeast Asia is fostering the demand for coal all over the globe, something Palmer calls the “Industrial Revolution II.”
More coal demand and production will mean more mines, he added, not unlike what is happening with Keystone Anthracite Corp., which will soon ask the state for permission to open a new strip mine in Zerbe Township.
“The energy is in the coal,” Palmer said.
Coal has the biggest and most ubiquitous supply, and it is not a question of if it will have a resurgence, but when, Palmer said.
He said steel producers around the world may return to the coal business. In the past, U.S. steel companies owned many coal mines because of coal’s use in producing steel.
Steve Bartos, director for the Northumberland County Planning Commission, said there have been several foreign investors in the anthracite region looking into the purchase of coal. Whether or not they use the coal directly or sell it, Palmer said, the economic effect is the same.
“It is not shocking that steel companies are looking to make major purchases of metallurgical coal that’s in the ground,” he said. “It will extend in the future for any type of coal.”
Fastest growing fuel
Palmer said the mining taking place for more than a century in the central Appalachian region, primarily southwestern Virginia, may decline, which could mean even more opportunity for northern Appalachia, the Midwest and further west. “We have a lot of coal,” Palmer said.
Despite economic problems plaguing the country, Palmer said the demand for coal will remain strong everywhere.
“It is the fastest growing fuel,” he said. “Coal is number one and will remain there.”
Describing the boon in coal, he said it’s “more than a thunderstorm, but it’s not quite a hurricane.”
Coal production was fueled by the Industrial Revolution, and vice versa, but it became much less important after oil, natural gas and nuclear power entered the forefront, Palmer said.
Today, vast improvements that have been made in environmental performance in the production and process of utilizing coal, although it still has many detractors worldwide who blame its greenhouses gases for global warming.
Increased exportation
Palmer said the U.S. is entering a new stage of increased coal exportation. In the late 1970s and early 1980s, the U.S. exported 150 millions tons of coal, but that market cooled dramatically, Palmer said.
While it never fully disappeared, the amount of coal exported dipped to as low as 40 million tons.
This year, 90 million tons will be exported, and next year predictions place that number at more than 100 million tons.
“Coal exports are becoming more and more important,” Palmer said.
Peabody also owns mines in Australia, the world’s largest coal exporter.
The global demand will take Australia’s 300-million ton exportation to more than 500 million tons, Palmer said.
China, which produces 2.5 billion tons of coal, has been exporting less than that amount because of its own demand. That, in turn, is increasing the global demand.
In fact, China has become a net importer, Palmer said.
“They buy more coal, more is delivered and they will need more coal,” he said.
And China is not alone. India and even Europeans countries, including England, Germany and Italy, need more, said Barry Worthington, executive director of the U.S. Energy Association, Washington, D.C.
“Global demand for coal has and will likely continue to increase,” Worthington said through an e-mail this week. “As energy security and economic concerns increase, coal will be looked to for less price volatility and more secure supply than alternatives for electric power production,” he said.
(from www.readingrailroad.org)
Anthracite Discovered
The first discovery of coal in eastern Pennsylvania can supposedly be traced back well over 200 years ago to Schuylkill County. Legend has it that in 1790 a woodsman and trapper named Necho Allen came to the area in search of timber and game. One night he built his campfire beneath a shelter rock and fell asleep. During the predawn hours he was awakened by a glowing light and great heat coming from the ground. Necho, to his astonishment, had discovered coal; his fire had not been built on rock, but on an outcropping of anthracite.
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| Local crops unaffected by dry weather | Impact of global coal demand evident locally |
