Peabody Energy

A Bad Week For Coal Mining Industry, Even Worse for Peabody Energy

It's been a really bad week for major U.S. coal companies as we head into the July 4th holiday weekend. 

St. Louis-based Peabody Energy (NYSE: BTU) closed today at $1.87 a share, down from a high of $84 per share in mid-2008. The company's chief financial officer Michael C. Crews resigned abruptly on June 28 amidst the freefall.

Another major U.S. coal company, Alpha Natural Resources (NYSE: ANR) hit a new all-time low yesterday at just 27 cents per share, and sank as low as 24 cents that morning.

Arch Coal (NYSE: ACI) also hit its all-time low of 33 cents per share as well, down from its all-time high of $73.42 in 2008.

All three companies' 
stock values are down roughly 80% from the beginning of 2015.

Dirty Money vs. Clean Power: How the Fossil Fuel Industry Hopes to Kill EPA’s Climate Rule

This is a guest post by Patrick Parenteau, Professor of Law, Vermont Law School

The fossil fuel industry is pulling out all the stops in an effort to derail President Obama’s Clean Power Plan being developed by the Environmental Protection Agency under the Clean Air Act.

The proposed plan, which aims to cut carbon emissions by 30% below 2005 levels by 2030, is due to be published as a final rule this summer. Launching a preemptive strike, the coal industry filed suit earlier this year seeking an “extraordinary writ” to stop the rulemaking in its tracks. This would be an unprecedented act of judicial intervention.

Peabody Energy's Insincere 'Energy Poverty' Campaign Takes Major Hit

Two stories out late last week in the Guardian will seriously test the resolve of Peabody Energy's “Advanced Energy for Life” campaign.

The first Guardian article's title says it all: “Exclusive - Energy giant exploited Ebola crisis for corporate gain, say health experts.”

Ouch.

Power for All Shows Peabody a Real Plan to End Energy Poverty

Peabody Energy would like you to believe that coal is the only way to light up the homes of the roughly 1.1 billion who still live in energy poverty.

A new campaign launched Thursday at the United Nations’ Sustainable Energy For All Forum in New York City offers a much different solution. Clean, distributed energy sources, argue the groups behind Power for All, can eliminate energy poverty more quickly and for a fraction of the cost of centralized electric grids anchored by fossil fuels. And, of course, without poisoning the air of communities and lining the atmosphere with even more greenhouse gases.

Groups File IRS Complaint Alleging ALEC is a Lobbying Vehicle, Not a Charity

The Center for Media and Democracy (CMD) and Common Cause have filed an 18-page supplemental complaint to the U.S. Internal Revenue Service (IRS) which calls for a termination of the American Legislative Exchange Council (ALEC)'s status as a 501(c)(3) non-profit organization and requests civil and criminal charges be brought against ALEC.

Peabody CEO Greg Boyce's Long History of Climate Denial

When it comes to climate denier coal executives, there is none more outspoken than Peabody Energy CEO Greg Boyce, who recently reiterated his belief that climate change is, “an environmental crisis predicted by flawed computer models.”

Boyce made the “flawed” comment in the roll-out of Peabody's “five point plan” — which is more a grumpy rejoinder to a world keen on replacing coal with renewable energy, than an actual plan.  

DeSmogCAST 14: Canada's Silenced Scientists, Tanker Train Industry Fights and Coal's Climate Secret

In this episode of DeSmogCAST host Farron Cousins discusses DeSmog Canada's recently unsuccessful attempt to interview an Environment Canada scientist.
 
Steve Horn from DeSmogBlog gives the background story to the in-fighting between oil refiners and tanker train operators who don't want to pay extra to transport dangerous fuels like Bakkan oil or diluted bitumen from the Alberta oilsands.
 
Finally Cousins asks DeSmogBlog's Mike Gaworecki to explain new revelations that coal companies are taking climate change very seriously - but only behind closed doors.
 

Industry-Stacked Energy Department Committee: Shale Running Dry, Let's Exploit the Arctic

A report assembled by an industry-centric US Department of Energy committee recommends the nation start exploiting the Arctic due to oil and gas shale basins running dry. 

In the just-submitted report, first obtained by the Associated Press, the DOE's National Petroleum Council — many members of which are oil and gas industry executives — concludes that oil and gas obtained via hydraulic fracturing (“fracking”) will not last beyond the next decade or so, thus the time is ripe to raid the fragile Arctic to feed our fossil fuel addiction. 

The NPC just launched a website and executive summary of the report: Arctic Potential: Realizing the Promise of U.S. Oil and Gas Resources.

Confirming the thesis presented by the Post Carbon Institute in its two reports, “Drill Baby, Drill” and “Drilling Deeper,” the National Petroleum Council believes the shale boom does not have much more than a decade remaining.

The NPC report appears to largely gloss over the role of further fossil fuel dependence on climate change, or the potentially catastrophic consequences of an oil spill in the Arctic.

The first mention of climate change appears to refer to “concern about the future of the culture of the Arctic peoples and the environment in the face of changing climate and increased human activity,” but doesn't mention the role of fossil fuels in driving those changes. Instead, the report immediately pivots to focus on “increasing interest in the Arctic for tourist potential, and reductions in summer ice provide an increasing opportunity for marine traffic.”

ExxonMobil CEO Rex Tillerson, a National Petroleum Council member, chimed in on the study in an interview with the Associated Press.  

“There will come a time when all the resources that are supplying the world's economies today are going to go in decline,” remarked Tillerson. “This is will [sic] be what's needed next. If we start today it'll take 20, 30, 40 years for those to come on.”

The National Petroleum Council also deployed the energy poverty argument, utilized most recently by coal giant Peabody Energy in its “Advanced Energy For Life” public relations campaign, to make its case for Arctic drilling as a replacement for fracking.

“But global demand for oil, which affects prices of gasoline, diesel and other fuels everywhere, is expected to rise steadily in the coming decades — even as alternative energy use blossoms — because hundreds of millions of people are rising from poverty in developing regions and buying more cars, shipping more goods, and flying in airplanes more often,” reads the report. “In order to meet that demand and keep prices from soaring, new sources of oil must be developed, the council argues.”

Coal Companies Talking Out Both Sides Of Their Mouths When It Comes To Climate Change

Peabody Energy, the largest coal company in the U.S., deployed one of the lawyers on its payroll to Congress last week to argue against the Environmental Protection Agency’s new carbon rule.

This is so common that it normally wouldn’t rate a mention, but in this case it happened to be Obama’s former Harvard law professor Laurence Tribe, who now works for Peabody and is critical of the EPA’s Clean Power Plan, saying it is tantamount to “Burning the Constitution.”

But then, even that ranks pretty low in terms of newsworthiness given that, as a new analysis by Greenwire E&E reporters Corbin Hiar and Manuel Quiñones puts it, “The highest profile practitioner of targeted climate messaging is Peabody Energy Corp.”


The Greenwire analysis shows that many coal companies are, in fact, frequently talking out both sides of their mouths when it comes to climate change, and uses Peabody in particular as a case study of the legal and shareholder risks involved.

Peabody Coal Lawyer Laurence Tribe, Obama's Law Professor, Testifies in Congress vs. EPA Carbon Rule

Laurence Tribe, constitutional law professor at Harvard Law School and of-counsel at the firm Massey & Gail LLP, recently testified in front of the U.S. House Committee on Energy and Commerce against the proposed U.S. Environmental Protection Agency (EPA) carbon rule

Currently working as legal counsel for coal industry giant Peabody Energy and helping the company write comments, Tribe submitted a 57-page legal memo to accompany his five-minute testimony (starting at 22:43). In December 2014, Tribe submitted 35 pages worth of comments to the EPA on its proposed rule.

Joining Tribe were both New York University School of Law professor Richard Revesz and Hunton & Williams attorney Allison Wood, who testified for and against the Clean Power Plan, respectively. But Tribe served as the star witness and fielded most of the questions from the Committee during the question-and-answer session.

Fittingly given his distinguished legal background, Tribe argued against the Clean Power Plan on constiutional law grounds. 

“Burning the Constiution should not become part of our national energy policy,” Tribe wrote in the early pages of the legal memo he submitted to the Committee. “At its core, the issue the Clean Power Plan presents is whether EPA is bound by the rule of law and must operate within the framework established by the United States Constitution.”

He also proposed a solution — favored by his client Peabody  in a section titled, “There is a Better Way.”

“The United States could…support carbon capture and storage technologies,” Tribe wrote, not mentioning Peabody's advocacy for so-called “clean coal.” 

“An 'all of the above' energy policy can support all forms of domestic energy production that will minimize carbon emissions, protect consumers and American jobs, and ensure that the U.S. remains independent from unreliable foreign sources of energy.”

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