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Tuesday, August 29, 2017
Sunday, August 20, 2017
Coal Article
WASHINGTON/LONDON (Reuters) - U.S. coal exports
have jumped more than 60 percent this year due to soaring demand from
Europe and Asia, according to a Reuters review of government data,
allowing President Donald Trump's administration to claim that efforts
to revive the battered industry are working.
The
increased shipments came as the European Union and other U.S. allies
heaped criticism on the Trump administration for its rejection of the
Paris Climate Accord, a deal agreed by nearly 200 countries to cut
carbon emissions from the burning of fossil fuels like coal.
The
previously unpublished figures provided to Reuters by the U.S. Energy
Information Administration showed exports of the fuel from January
through May totaled 36.79 million tons, up 60.3 percent from 22.94
million tons in the same period in 2016. While reflecting a bounce from
2016, the shipments remained well-below volumes recorded in equivalent
periods the previous five years.
They included a
surge to several European countries during the 2017 period, including a
175 percent increase in shipments to the United Kingdom, and a doubling
to France - which had suffered a series of nuclear power plant outages
that required it and regional neighbors to rely more heavily on coal.
"If
Europe wants to lecture Trump on climate then EU member states need
transition plans to phase out polluting coal," said Laurence Watson, a
data scientist working on coal at independent think tank Carbon Tracker
Initiative in London.
Nicole Bockstaller, a
spokeswoman at the EU Commission's Energy and Climate Action department,
said that the EU's coal imports have generally been on a downward trend
since 2006, albeit with seasonable variations like high demand during
cold snaps in the winter.
Overall
exports to European nations totaled 16 million tons in the first five
months of this year, up from 10.5 million in the same period last year,
according to the figures. Exports to Asia meanwhile, totaled 12.3
million tons, compared to 6.2 million tons in the year-earlier period.
Trump
had campaigned on a promise to "cancel" the Paris deal and sweep away
Obama-era environmental regulations to help coal miners, whose output
last year sank to the lowest level since 1978. The industry has been
battered for years by surging supplies of cheaper natural gas, brought
on by better drilling technologies, and increased use of natural gas to
fuel power plants.
His administration has since
sought to kill scores of pending regulations he said threatened
industries like coal mining, and reversed a ban on new coal leasing on
federal lands.
TAKING CREDIT
Both
the coal industry and the Trump administration said the rising exports
of both steam coal, used to generate electricity, and metallurgical
coal, used in heavy industry, were evidence that Trump's agenda was
having a positive impact.
"Simply to know that
coal no longer has to fight the government - that has to have some
effect on investment decisions and in the outlook by companies,
producers and utilities that use coal," said Luke Popovich, a spokesman
for the National Mining Association.
Shaylyn
Hynes, a spokeswoman at the U.S. Energy Department, said: "These numbers
clearly show that the Trump Administration's policies are helping to
revive an industry that was the target of costly and job killing
overregulation from Washington for far too long."
Efforts to obtain comment from exporters Arch Coal (ARCH.N)
and privately held Murray Energy Corp were unsuccessful. Contura
Energy, which emerged as part of Alpha Natural Resource's bankruptcy and
restructuring, and filed for public offering in May, declined to
comment.
A spokesman for Peabody Energy, the
largest coal producer, though without a major export profile, said the
United States was generally a "swing supplier of seaborne coal."
U.S.
Energy Information Administration analyst Elias Johnson said the U.S.
coal industry may now be better positioned to meet foreign demand
because U.S. miners have learned to produce at lower cost, after coming
through a series of recent bankruptcies.
"There's the possibility that the U.S. will become more of a primary player in the global coal trade market," he said.
But
he added there are also plenty of reasons the spike in demand could be
temporary. For one thing, U.S. coal production and transportation costs
are much higher than for other producers such as Indonesia and
Australia.
Because
coal can often be transhipped from European ports before it is
consumed, it is also hard to determine where shipments ultimately end
up.
Johnson pointed out that some of the fuel
shipped into Western Europe, for example, could be making its way to
other places like Ukraine, which is having trouble securing coal from
its separatist-held regions.
Trump said last
month that his administration is offering more coal to Ukraine, but it
was unclear how, given deals are typically worked out between companies.
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