Editorials
Charleston Daily Mail
Monday November 29, 2010
Nations that burn it or supply it are creating plenty of new jobs………….
President Obama announced in March an ambitious plan to double U.S. exports within five years. “In a time when millions of Americans are out of work, boosting our exports is a short-term imperative,” he said.
If it is, the administration needs to rethink its economically suicidal policy with respect to coal, for which there is robust international demand.
Other nations are making a lot of money and creating a lot of jobs with the reliable, affordable fuel the administration doesn’t want Americans to use
“Coal is the fastest-growing fuel in the world and will continue to be largely driven by the enormous appetite for energy in Asia,” Vic Svec, senior vice president of Peabody Energy, told the New York Times.
“The growth and shifts in coal exports to China are impressive, flowering even during the recession,” wrote Elizabeth Rosenthal of the Times. “Seaborne trade in thermal coal rose to about 690 million tons this year, up from 385 million tons in 2001.
“The price rose to $60 from $40 a ton five years ago to a high of $200 in 2008. Coal delivered to southern China currently sells for $114 per ton.”
Yet China was a net exporter of coal until 2009. It will import as much as 150 million tons this year.
Last year, the United States exported only 2,714 tons of coal to China. That rose to 2.9 million tons in the first six months of this year, but the United States still accounts for what Rosenthal termed “a minuscule fraction” of China’s coal imports.
India is another huge market. It imported 36 million tons of coal in 2008 – and 60 million tons in 2009.
The Chinese and Indian economies are roaring. The pitiful state of the U.S. economy just cost the president much of the support he enjoyed in Congress.
And much of this damage is self-inflicted.
Other regions of the world, including Australia and South America, are supplying the demand for coal. An Australian company signed a $60 billion contract – the nation’s largest export contract ever – to supply coal to Chinese power stations starting in 2013.
Australia exported $508 million worth of coal to China in 2008 – and $5.6 billion worth last year.
Yet the administration has cast its lot with the likes of the Sierra Club, which estimates that it has helped to block 139 proposed coal-burning plants in the United States in recent years.
The administration’s war on coal robs the U.S. economy of the affordable energy it needs to recover. Further damaging the industry here will do even more damage to the U.S. balance of trade, and job creation.
Strangling the coal industry here, while other nations encourage it, won’t help the environment or the economy. It’s time U.S. policy reflected that.
The Sierra Club isn’t responsible for economic well-being. The administration is.