Patriot Coal Corporation (fka PCXCQ)

[mwilmington]

RE: iheartweimers & Post 1720

Interesting numbers to be sure however, if we tighten our focus and use department of energy figures as they apply to coal instead of “energy in general”. We can focus on what we mine what we sell, and where it goes. An important dynamic in this arena is natural gas prices. Currently there is a “glut” of natural gas. Natural gas prices are far below what it takes to produce in. In business… that has to rapidly change or else…If you read my article in seeking alpha
http://seekingalpha.com/instablog/3447811-workin_for_a_livin/815471-coal-black-gold
an interesting scenario is taking place..
Coal exports http://www.eia.gov/todayinenergy/detail.cfm?id=5990
U.S. exports to Europe in the fourth quarter of 2011 increased both quarter-over-quarter and from the fourth quarter of 2010. Several factors may have increased U.S. exports to Europe in 2011:
• South Africa shifted steam coal exports from Europe to Asia
• Russia and Columbia had limited spare coal export capacity available to meet European demand
Exports of metallurgical coal—used in steelmaking—accounted for 65% of coal exports in the fourth quarter of 2011: 18.0 million short tons with an average price of $181.41. Exports to key Asian markets (South Korea, Japan, and India) increased to 3.9 million short tons in the fourth quarter of 2011. Fourth-quarter exports to China (1.3 million short tons) grew 28.4% from the third quarter of 2011, but remained about the same as the export level in the fourth quarter of 2010. Metallurgical coal exports to Italy (1.1 million short tons) and Ukraine (1.3 million short tons) also grew appreciably from the fourth quarter of 2010.
Steam coal exports increased by 27.0% from the fourth quarter of 2010 to 9.6 million short tons. Exports to the United Kingdom (1.2 million short tons) and South Korea (0.9 million short tons), which together accounted for 22.4% of total steam coal exports, were followed by lower levels to Germany, the Netherlands (a major trans-shipment port), and Belgium.
Coal is currently the dominant fuel for electricity generation and is likely to remain so, even if additional environmental control regulations targeting emissions of mercury, sulfur dioxide, nitrous oxide, and acid gases from coal power plants are implemented in the near future. Analysis included in the Annual Energy Outlook 2011 presents the results of alternate cases that anticipate the effects of these proposed regulations on the electric power sector. These alternate cases show that projected reliance on coal and natural gas generation in 2020 is sensitive to the extent of retrofits required, the length of the period over which retrofits can be amortized, and the level of natural gas prices.
A quick glance at the chart amplifies the word “DOMINANT” in the preceding paragraph
http://www.eia.gov/todayinenergy/detail.cfm?id=1550
you are correct that it takes oil fired ships to get to Europe and Asia just as it takes oil fired locomotives to reach the ports however Europe and Asia are buying our coal at a record pace.
I believe investing in coal particularly now