Peabody Energy

Canadian Climate Denial Group, Friends of Science, Named as Creditor in Coal Giant's Bankruptcy Files

By Charles Mandel for the National Observer.

A Canadian climate change denial group has popped up in a U.S. coal giant's bankruptcy proceedings that have lifted the curtain on the funding of a sophisticated continent-wide marketing campaign designed to fool the public about how human activity is contributing to global warming.

document, nearly 1,000 pages long, lists the Calgary-based Friends of Science Society as one of the creditors expecting to get money from the once-mighty coal company, Peabody Energy.

Climate scientists and environmentalists have long suspected that the so-called “Friends” group was a front for fossil fuel companies trying to block government action to reduce carbon pollution, but Friends of Science members always declined to reveal their source of funding.

Court Documents Show Coal Giant Peabody Energy Funded Dozens Of Climate Denial Groups

According to a new analysis by The Guardian, Peabody Energy, the U.S.’s largest coal mining company, has been funding dozens of different climate change-denying organizations for years.

The analysis is based on recently released court documents that came to light as a result of the company’s bankruptcy filings. In April, Peabody filed for bankruptcy as the global demand for coal continued to plummet.

DeSmog readers will recognize many names revealed to have received funding from Peabody, including climate deniers Willie Soon, Richard Lindzen, Roy Spencer and Richard Berman. All three of these men have gained notoriety from the fossil fuel industry for publishing works and promoting the idea that climate change is just part of natural “warming and cooling” cycles that the earth goes through.

Then there are the familiar front groups revealed: Americans for Prosperity, American Legislative Exchange Council, CFACT, Institute for Energy ResearchState Policy Network, the U.S. Chamber of Commerce and dozens more.

From The Guardian report:

These groups collectively are the heart and soul of climate denial,” said Kert Davies, founder of the Climate Investigation Center, who has spent 20 years tracking funding for climate denial. “It’s the broadest list I have seen of one company funding so many nodes in the denial machine.”

Peabody's Outlier Gang Couldn't Shoot Straight In Minnesota Carbon Case, Judge Rebuffs Happer, Lindzen, Spencer, Mendelsohn, Bezdek

Peabody's Outlier Gang Couldn't Shoot Straight In Minnesota Carbon Case, Judge Rebuffs Happer, Lindzen, Spencer, Mendelsohn, Bezdek

Overview
On 04/13/15, Peabody Energy followed other major coal companies into bankruptcy, and days later lost a battle in a landmark legal war on Minnesota's Social Cost of Carbon (SCC).  The “best” gang1 of climate denial outliers they could hire tried to confuse the court with absurd claims in both science and economics. The Judge was not fooled, and ruled unambiguously, as reported by Bloomberg BNAUniversity of Minnesota Consortium on Law and Values and MPRNEWS:
Updated climate change costs make coal-fired power less attractive:

“Other People’s Money” – Trump University and Coal Exports

This is a guest post by Ross Macfarlane, recently Senior Advisor with Climate Solutions

Recently unsealed court documents reveal the money-making secret at the heart of Trump University. The managers even had an acronym for it: OPM, standing for “Other People’s Money.”  As reported in People Magazine:

Playbooks used to market Donald Trump's now-defunct Trump University were unsealed by court order on Tuesday, showing that the training program's aggressive sales force promised would-be students they would learn “the technique of using OPM … other people's money.”

While the instructors claimed to be teaching people how to leverage banks to make fortunes in real estate, former Trump University executives now disclose that the OPM they were really targeting was in their students’ pockets.  According to these managers, their business plan focused on mining the credit card balances and savings accounts of gullible and desperate clients, often elderly and poor, who fell for the slick sales pitch and the promise of a quick solution for their financial challenges. 

So what does Trump University have to do with coal exports?

Peabody Energy Bankruptcy Claim Must Put Lands, Water and People Above Executives and Bankers, Say Protesters

One week ago, Peabody Energy cried uncle.

The world’s largest privately-owned coal producer filed for Chapter 11 bankruptcy protection, following Arch Coal, Alpha Natural Resources, and Patriot Coal in begging the United States Bankruptcy Courts for mercy.

It would be easy for climate advocates to cheer the occasion as yet another signpost along the hard-fought road to a carbon-free future. But, unfortunately for many involved, Peabody’s bankruptcy could leave many vulnerable parties—from coal workers to Navajo tribes to students in St. Louis— suffering further.

Which is why activists from impacted communities gathered on Tuesday in St. Louis, home of Peabody’s headquarters, to demand that a “Just Transition Fund” is endowed as part of the bankruptcy proceedings before the “golden parachutes” are given out to reckless executives and the loans are repaid to the reckless banks that kept funding Peabody’s speculation.

Peabody Coal's Bankruptcy: Invisible Hand Pushes Peabody Under

This is a guest post by ClimateDenierRoundup crossposted from Daily Kos.
 

Subsidized to the End: Not Even Corporate Welfare Can Save Big Coal

This year, two energy companies that have each received billions of dollars in subsidies and financial support from the federal government are going into bankruptcy. You might think, in this post-Solyndra political environment, that conservative commentators and politicians would be lining up at the Fox News studios to call for some heads to roll.

But, no. Even though these companies have benefited from enough federal subsidies to make the Solyndra loan look like pocket change, there's no outrage. Because they are coal companies (not solar), the story isn’t about how the federal government spent decades propping them up, it’s about how the president’s Clean Power Plan is taking them down.
 
For decades, however, coal companies have taken advantage of vast subsidies for extracting coal from public lands. The deals for mining this taxpayer-owned coal from American public lands were so good that some of the world’s biggest coal companies have relied on the cheap leases to survive as demand plummeted and the industry melted down.

A new report released last week by Greenpeace reveals just how big a part of Big Coal’s business federally subsidized coal has become. 

Peabody Energy, World's Top Coal Miner, Expected to File for Bankruptcy as Stock Price Tanks

Peabody Energy (BTU), the top miner of coal in the world, may soon file for Chapter 11 bankruptcy

The news comes as Peabody's stock closed Wednesday at a six-month low of $2.19 per share — a 46-percent fall. Peabody noted its potential bankruptcy in the company's March 16 U.S. Securities and Exchange Commission (SEC) Form 10-K.

“If we are not able to timely, successfully or efficiently implement the strategies that we are pursuing to improve our operating performance and financial position, obtain alternative sources of capital or otherwise meet our liquidity needs, we may need to voluntarily seek protection under Chapter 11 of the U.S. Bankruptcy Code,” stated Peabody

Here's Why Even The World's Largest Coal Company Is Teetering On Bankruptcy

This is a guest post by Nick Abraham, originally published on Oil Check Northwest

Peabody Energy, the largest private coal company in the world, is one of the last remaining coal majors to still be floating above the bankruptcy tidal-wave that has hit the industry. But it now looks like that even this coal behemoth will likely go under. Languishing under the same over capitalization and changing market structures that have plagued the entire industry (more on that below) Peabody's stock has dropped 30% just since the final fiscal quarter of last year.

Peabody is now $6.3 billion in debt. Its Gateway Pacific terminal, just north of Bellingham, WA, (which if built would be the largest facility of its kind in North America) has been in a holding pattern as local communities weigh whether a project like this is in the collective interest. 

Coal's demise has been well-reported. Once the standard bearer of our power grid, coal has dropped from providing a substantial 50% of the nation’s electricity to 29%. Just last week, the Oregon legislature passed a bill to transition off coal power completely. The result of this downturn is that many domestic coal companies were becoming heavily dependent on exported coal (and exports have been falling since 2012)—carried by train through American cities and towns—to make up the difference.

China Will Close 1,000 Coal Mines As Industry Continues to Sputter

China has announced plans to close more than 1,000 coal mines in 2016, cutting production by 60 million tonnes. The move is part of a larger mandate to eliminate as much as 500 million tonnes of surplus production over the next five years, the government says. 
 
When it comes to coal, China is king: it is the world's largest producer and also its largest consumer. Last year, the country's 10,760 mines produced 3.7 million tonnes of coal. Yet, it's estimated that over half (2 million tonnes) that capacity does not get used, every year. According to a Reuters report, demand has waned due to the combination of a slowing economy and government policy to curb pollution by moving away from fossil fuels.
 
In addition to the air pollution from burning coal that plagues Chinese cities and exacts huge costs on society, the country's coal mining over-production is a real problem. Last year the country's supply surplus drove domestic prices down by a third.  Prices have dropped for five straight years thanks to a glutted market. Recognizing one of its most important economic sectors is in trouble, China hopes to stimulate the industry through consolidation.  The government has plans to eventually shut down all mines that produce less than 90,000 tonnes per year. Under this policy 5,600 mines will be shuttered.

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