Revisited Post – Coal is not Dead!
Coal is not dead as I pointed out in last years post – http://allenergyconsulting.com/blog/2012/04/11/the-demise-of-coal-overstated/
I am sorry I am late in publishing my blog. Life is catching up on me. For a quick blog I thought I review what I wrote around this time last year. It was good that I was right. Gas prices have significantly firmed up relative to last year – in fact they have DOUBLED!
As I pointed out in my blog last year, much of the downfall can be attributed to the weather. There is some attribution for weather again for the move up. This years winter was cold relative to normal. Global warming this year took a break – unfortunate for those in Ohio. We actually had a freeze warning last week! Nonetheless, as I expected, prices of natural gas price rose from their extreme low. Even if winter was not as cold but normal, I am sure gas would be still north of $3.75/mmbtu.
The fun thing to watch this year will be spot prices of coal. I suspect we will see firming in the spot prices as I expect many coal generators given their pain over the past few years under contracted the amount of coal they will actually consume. This may not present itself till after June/July given they are right now suspecting weather could save them.
I am still working on my piece of Global Warming and Quantitative Easing and their similarities. Just like the hockey stick issue that occured in Global Warming – looks like there is a hockey stick issue for QE in academia – http://www.forbes.com/sites/realspin/2013/04/18/that-reinhart-and-rogoff-committed-a-spreadsheet-error-completely-misses-the-point/
Please do consider All Energy Consulting for your energy consulting needs. The blog has documented our general outlook. As you can review my blog we are quite prescient of the future as it pertains to energy.
Your very Prescient Energy Consultant,
David K. Bellman
614-356-0484
