Kevin Grandia's blog

Pure Play Peabody and Other U.S. Coal Kings Getting Pummelled in Stock Market

So far, 2016 has not been very kind to U.S. energy companies solely invested in coal production, and there is no indication that it's going to get better anytime soon. 

With cheap natural gas substituting coal for electricity production, a sustained downturn in coal demand in China, and tough new regulations on greenhouse gas emissions in the United States, pure play coal companies like Peabody Energy (NYSE: BTU) and Arch Coal (NYSE: ACI), are having a horrible run of it. 

St. Louis-based Arch Coal filed for bankruptcy protection on Monday, and that news saw trading immediately halted and proceedings undertaken to have Arch Coal delisted from the New York Stock Exchange. Over the last ten years, Arch Coal's share price dropped from a high of $104.45 per share, to trading at a mere 15.5 cents this week prior to the halt to trading.

A Mythbusting Guide to the Paris Climate Agreement

Climate Nexus has published a helpful mythbusting page correcting the misinformation that is already being spread about the Paris Climate Agreement. It is rewritten here with permission.

Myths and Facts about COP21, the Paris Climate Agreement

MYTH: “Paris is not legally binding; it won’t change anything. China and India will still emit so much CO2 as to make all US reductions pointless.”

FACT: Paris does have legally binding aspects, and other nations are already taking action.

Five Energy Stocks to Watch After Paris Climate Agreement

With a new global agreement on climate change gaveled into the history books in Paris tonight, many people including me believe we have just witnessed the end of the fossil fuel era.

So-called “pure play” fossil fuel companies that have not significantly diversified into other areas of energy production will be huddled in boardrooms this coming week trying to figure out what the Paris Agreement means to their bottom line. 

Your guess is as good as mine what will happen given how fickle global commodity markets can be, but here are five stocks to watch this coming week to get a good idea of how the energy market is reacting to the Paris Agreement:

Agreement in Paris Paves Road For The End of Fossil Fuels

paris climate conference cop21

History was made tonight in Paris as the leaders of 195 nations agreed to an ambitious, science-based pact to move the world away from the fossil fuels that are to blame for the rapid increase in global temperatures.

After two weeks of negotiations here in the airport hangars of Le Bourget, 195 parties have signed a global pact that will curb global warming pollution and rapidly escalate the growth of the clean energy solutions the world needs.

The consensus here is that the Paris deal on the table is a good one. Could it be better? Of course. But this deal is about as good as it is going to get from a consensus process involving 195 countries.

Coal is Not the Answer to Energy Poverty and Here’s Why

Worldwide, the coal industry is suffering as the demand for its product weakens in the face of a surge in clean, renewable energy options and a world that can no longer afford to continue to consume this dirty fossil fuel.

To deal with this decline in revenue, some coal companies like Peabody Energy are spending millions on advertising, public relations and lobbyists to convince politicians that coal is the answer to the issue of energy poverty in developing nations in Africa, Asia and other parts of the world.

Peabody Energy 'Experts' Sow Doubt About Reality of Climate Change

According to publicly available court records, US coal company Peabody Energy recently submitted expert testimony to the Minnesota Public Utilities commission arguing that, CO2 is not harmful and is actually good for the planet” and that “there is no empirical scientific evidence for significant climate effects of rising CO2 levels, and there is no convincing evidence that anthropogenic global warming (AGW) will produce catastrophic climate changes.”

These statements and many more were included in “expert” presentations made to the Minnesota Public Utilities commission in June of this year by Roy Spencer and Roger Bezdek, who were both testifying on behalf of Peabody Energy.

The hearings were conducted by the Minnesota Public Utilities Commission which is investigating the environmental and socioeconomic costs of carbon and greenhouse gases.

Roger Bezdek, an economist and president of a consulting firm called Management Information Services, Inc, offered testimony on behalf of Peabody Energy on June 1, 2015.

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