Arch Coal

IEEFA Research

As Texas Coal-Fired Power Plants Close, Powder River Basin Mines Are Losing Their Largest Customers

Trends Will Force Closures and Complicate Efforts by Alpha Natural Resources, Arch Coal and Peabody Energy to Work Their Way Out of Bankruptcy

CLEVELAND, Aug. 3, 2016 (IEEFA.org) — The Institute for Energy Economics and Financial Analysis today published a report detailing how Powder River Basin coal producers are losing their largest customers as Texas power producers turn increasingly to other sources of energy. The report, “Texas’ Outsize Role in the Decline of the Powder River Basin Coal […]

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The Federal Government’s Coal-Leasing Program Is Broken: Here’s How to Fix It

Appoint a Price-Setting Commission; Ban Exports; Cancel Some Leases; Eliminate Self-Bonding; Mandate Set-Asides for Mine Clean-up and Miner Pensions; Require Twice-a-Year Audits; Assume Smaller Markets

It’s time for the U.S. to modernize how it manages its publicly owned coal reserves. That’s the essence of comments we’ve filed today with the Department of the Interior as it begins a review of its federal coal-leasing program in the Powder River Basin, a program that has been mismanaged for years at taxpayer expense […]

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For U.S. Coal, Market Realities Grow Increasingly Harsh

Debt Hurdles, Reclamation and Pension Challenges, Abandonment by Hedge Funds

We distributed a briefing note this week that delves into some of the many pressing difficulties confronting U.S. coal producers. In the note (“Struggling U.S. Coal Companies Face Debt Hurdles, Complications From Reclamation and Pension Obligations, Pressure from Hedge Funds”) we talk about how the cumulative impacts of the industry’s many mounting liabilities—reclamation costs, pension […]

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Report – No Need for New U.S. Coal Ports: Data Shows Oversupply in Capacity

No Need for New U.S. Coal Ports: Data Shows Oversupply in Capacity (pdf) By Tom Sanzillo, Director of Finance, IEEFA  

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Report: 20 Fourth-Quarter Questions for Powder River Basin Coal Producers

20 Fourth-Quarter Questions for Powder River Basin Coal Producers (pdf) By Tom Sanzillo, Director of Finance, Institute for Energy Economics and Financial Analysis

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Report – NYC and NYS pension funds should divest coal stocks: A shrinking industry, weak upside, and wrong on climate change

NYC and NYS pension funds should divest coal stocks: A shrinking industry, weak upside, and wrong on climate change (pdf)

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Briefing note: Fossil fuels, energy transition, and risk

Briefing note: Fossil fuels, energy transition, and risk (pdf) By Tim Buckley,  Director of Energy Resource Studies, Australasia, IEEFA

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More News and Commentary

Resistance, Still, to Acknowledging Climate Risk Among Major Fossil-Fuel Companies

John H. Cushman Jr. for InsideClimate News: A methodical review of the world’s dominant fossil fuel producers has documented their poor performance—in some cases, egregious failure— in taking responsibility for their emissions of greenhouse gases and moving effectively to confront climate change. “None of them has made a clean break from disinformation on climate science […]

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Arch Coal, 2nd-Biggest U.S. Producer, Emerges From Bankruptcy as ‘Lean, Mean, Fighting Machine’

Sarah Chaney for the Wall Street Journal: Arch Coal Inc. emerged from bankruptcy Wednesday after winning court approval on a turnaround plan that clears nearly $5 billion in debt from the coal producer’s books. Chief Executive John W. Eaves said Wednesday that the restructuring has repositioned Arch to succeed in a recovering energy market. “We […]

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Mounting Risk (and Opportunity) in Coal Industry Self-Bonding

Gregory DL Morris for Risk & Insurance: Waves of bankruptcies convulsing the coal industry in the United States leave billions of dollars in mine remediation costs potentially unfunded, and raise ominous questions for both tactical insurance and strategic risk management. Dozens of coal companies are in court-supervised reorganization or liquidation, some of them for the […]

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Arch Coal Says It Will End Its ‘Self-Bonding’ Scheme and Make Good on Mine Cleanups

Tracy Rucinksi for Reuters: U.S. coal miner Arch Coal has agreed to set aside collateral to cover future mine cleanup costs as part of its bankruptcy reorganization plan, according to a court filing, ending its controversial use of “self-bonds.” For decades the largest U.S. coal companies have used a federal subsidy known as “self-bonding,” which […]

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Regulator Proceeds With Crackdown on Self-Bonding by Collapsing Coal Industry

Heather Richards for the Casper (Wyo.) Star-Tribune: The Office of Surface Mining Reclamation and Enforcement announced that the agency would begin crafting a self-bonding rule, which will go through multiple comment periods, could potentially change eligibility requirements for the practice, incorporate new bonding mechanisms or institute yearly reviews of the financial health of self-bonded companies. […]

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As Texas Coal-Fired Power Plants Close, Powder River Basin Mines Are Losing Their Largest Customers

Trends Will Force Closures and Complicate Efforts by Alpha Natural Resources, Arch Coal and Peabody Energy to Work Their Way Out of Bankruptcy

CLEVELAND, Aug. 3, 2016 (IEEFA.org) — The Institute for Energy Economics and Financial Analysis today published a report detailing how Powder River Basin coal producers are losing their largest customers as Texas power producers turn increasingly to other sources of energy. The report, “Texas’ Outsize Role in the Decline of the Powder River Basin Coal […]

Read More →

As Texas Coal-Fired Power Plants Close, Powder River Basin Mines Are Losing Their Largest Customers

Electricity Companies in the Lone Star State Have Changed Fuel Preferences

As Powder River Basin coal producers try to work their way out of bankruptcy they are waging an uphill battle against a market that continues to decline internationally, nationally, and regionally. Nowhere is this conundrum better illustrated than in what’s happening in the power-generation industry over a thousand miles away in Texas, which burns more […]

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Production at a Top U.S. Mine Drops to Less Than Half What It was in 2010

Joshua Learn for SNL: Arch Coal Inc.’s Black Thunder mine in Wyoming produced only 13.7 million tons in the second quarter 2016, the lowest amount since the last quarter of 1999 when the mine produced around 13.2 million tons. The recent quarter’s number is down 9.6% from the 15.2 million tons reported in the first […]

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Appalachia Needs More Than the Sound and Fury of the ‘War on Coal’ Canard

Calling for a Serious Conversation About Investment in a Devastated Regional Economy

This much is evident: Coal’s share of the U.S. electricity-generation market is shrinking. It fell to 33 percent in 2015 from 50 percent in 2005 and is showing no sign of recovery. Industry giants like Alpha Natural Resources, Arch Coal, and Peabody Energy have filed for bankruptcy and are worth only a small fraction of […]

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U.S. Coal Companies Spent Millions on Executive Bonuses and Lobbying Before Filing for Bankruptcy

Jennifer A Dlouhy for Bloomberg News: Five coal-mining companies spent $95 million to lobby U.S. lawmakers and more than half a billion dollars on salaries for top executives in the decade before they filed for bankruptcy, according to a report by an environmental group. At the same time, the companies — Walter Energy Inc., Patriot […]

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