Next Year, We’ll Ask for Coal!

By Peter Andrew – ConservativeAmerican.org
Leading the way Right with unique and fun, conservative news and views.

Coal_anthraciteChristmas is over, and so are the worries that you may have been on the naughty list. Chances are you were good this year and you avoided the lump of coal in your stocking. But hey, would coal really be such a bad thing?

President Obama and his socialist-democrat party continues to fight its War on Coal, hoping to eliminate the entire industry. He’d rather spend billions on failing solar power firms and waste it on wind energy. Unless they can harness the wind from all the lies he spews, wind power will never be the answer.

The American Coal Council is helping us this week to get rid of some of the myths you may have been told or taught about coal.

Myth 4 – Natural Gas is capable of replacing coal.

Fact: ConservativeAmerican.org fully supports natural gas and the fracking process. Natural gas is a valuable fossil fuel with many uses beyond electricity generation. Gas is used for approximately 26% of electricity generation in the United States, and is currently enjoying relatively low pricing due to increased production from shale gas wells. However, the energy in our natural gas reserves is less than half of that in our coal reserves and gas continues to be plagued by relatively wild price swings.

coal chart3

Thinking that natural gas can replace coal? Some quick facts to consider.

  • Coal is at least twice as plentiful and only one-third the cost of natural gas.
  • Natural gas prices from 1998-2008 have been on average four times higher than coal prices. While natural gas prices have been $5.75/MMBTU, coal has been priced at $1.46/MMBTU.
  • Natural gas prices are not only on average higher than coal, they are also much more volatile. That volatility makes planning and budgeting extremely difficult. From 2008 to 2012 natural gas prices have fluctuated between a low of $1.94/MMBTU (2012) to a high of $10.79/MMBTU (2008). At the same time, coal’s average annual prices have remained rock solid, moving from a low of $1.20/MMBTU (2000) to a high of $2.52/MMBTU (2008).
  • Moving forward EIA predictions forecast that natural gas prices (Henry Hub) will remain at or just below $4.00 / mmbtu through 2018. Of course, low gas prices like this will rely heavily on continued association with oil production. Fluctuations in world oil prices will have heavy impacts on natural gas pricing.
    Coal prices are forecast to move very slowly, over the next three decades, from their 2011 price of $2.04 / mmbtu to a high of $3.08 /mmbtu in 2040.

Coal is a key fuel of our future in the United States of America. It is domestically-sourced, affordable, abundant/secure, and increasingly clean. As the ACC says, “It’s our rock!”

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