November 11, 2016 Read More →

Blocking U.S. Move Toward Coal-Lease Reform Would Only Hurt the Oversupplied Coal Industry

Josh Learn for SNL Beta:

As the results of the federal election settle in across the country, coal advocates see a possible end in sight for the federal coal lease moratorium under President-elect Donald Trump.

However, some coal opponents say that halting the moratorium will actually “hasten the decline” of the industry in the U.S.

“Adding more coal to an already oversupplied market will drive down prices,” Tom Sanzillo, director of finance for the Institute for Energy Economics and Financial Analysis, told S&P Global Market Intelligence.

“The moratorium is an opportunity to restructure the business partnership between the industry and the government,” Sanzillo said. “Business as usual will leave a financial model in place that no longer addresses the reality of coal markets here and abroad. Federal coal leasing is now a program with no investment rationale. Future, undisciplined growth, the trademark of the current program will not lead to a renewal of investor interest.”

Full article: Coal sector anticipates end of federal coal lease moratorium with Trump

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