Aapljack, my point was the consequences of an over reliance on NG are best known sooner rather than later. We customers bear the cost ultimately, the utilities will have the case they need to raise r electric rates to any level they need to meet regulations. Industrial users get the leftovers only when there are gas shortages so they will also get very outspoken in Washington if that happens.
dstone, let me get this straight. This vote was Landrieu's idea, she took the initiative to put together a bill that had a chance of passing both the House and Senate. And Republicans gladly worked with her on it. Then, they used it against her when it didn't pass?
I see. I guess that shows how little I follow the party strategizing. And how trivial Washington drama can be. They tend to be gratified with vote results, with no expectation of getting something meaningful done by negotiating. Thus the executive actions from our get-er-done President.
Why are they even bothering with these Keystone XL votes. Nothing is different now than before the election. Its a monumental waste of time at this point led by Boehner. Same goes for regulations effecting coal, and related election promises, nothing real can happen till January. And hopefully the country will have experienced some winter energy shortages and spiking NG prices in major cities by then. I remember Propane shortages and rationing last year especially in the upper Midwest.
Sentiment: Strong Buy
To make matters worse Siemens (builders of what were considered the safest nuclear plants) abandoned their nuclear business when Germany abandoned nuclear energy in 2011. So now all new plants are 2nd rate.
Seeing how the oceans cover 71% of the earth, if that's the case algae would be a big player. What scares me and what should scare environmentalists is what seems to be unavoidable nuclear accidents every decade or so. Fukushima Nuclear Power Plant disaster radiation is all through the ocean in probably a 500 mile radius. How much of our seafood comes from over there? And that's just accidents, thank goodness they seem to be off the radar of terrorists. Global warming won't matter much if we are all dying of cancer mid-life.
Dark this brings up a point, coal power plants are typically NOT peaking. Unlike solar, wind, and certain hydroelectrics, they run 24 / 7 / 365. The real workhorses powering the world's grids. So investments to make them "cleaner" are spread out across far more KwH in a year. Its going to happen, in every country. There's plenty of room at the table for energy sources - coal just happens to be at the head of the table for the foreseeable future :)
Historically that's been NG powerplants' role - peaking. They cost more per KwH to run but they can be brought online quickly at high efficiency levels compared to coal and then shut down quickly. And during those peak hours they can charge more for power so its all good. When NG got cheapt ($2 - $2.50), apparently they ran some of these full-time to take advantage and that was some of the coal-to-gas switching we heard of. The closure of small old less efficient coal plants makes great headlines, presented as evidence of the war on coal. However, the large modern more efficient coal plants are seeing higher utilization rates and the size of many new plants take the place of 5-10 old ones. That's what they don't tell you in the biased media.
In Europe there are NG plants which are stranded assets - uneconomical to run. Your seasoned utility executives are acutely aware of the volatility of NG prices and love coal for the price stability, reliable profits, and financial predictability. Coal is far from perfect but so economical that solution to re-purpose or transform the C02 are inevitable. Personally, beyond sequesters, I expect a method of economically splitting the C + 02 will be found and the owner of the technology will have a windfall on their hands. And where's the critics of deforestation been? An acre of pine trees (~120 trees) has the potential to sequester roughly 5 tons of CO2 per year
Yea doesn't this quota only apply to biodiesel and ethanol blends though? Interestingly Midwest Republicans always supported ethanol and soy-based diesel for a key party member - grain farmers. More accurately they've only delayed specific quotas. I think this delay relates to the 15% mixing limit in gasoline, and problems achieving the prior quotas which are Billions of gallons of ethanol.
This coming from a company that already has 30 wind-power plants and 5 solar plants. They know the options. Been there done that.
“I would hate to see the country sort of turn its back on coal,” Crane told the New York Times. “I think we, alone or with the Chinese, have to direct our attention to capturing the carbon. ”
We got sick of waiting around to see what was going to happen on the policy end.
At the groundbreaking Crane emphasized the important role CCS will play in NRG’s future, saying that the last groundbreaking he attended was for a coal plant in Texas that will be the home of the largest CCS project of its kind in the world.
“CCS technology remains too expensive and geographically limited,” said Crane. “New technologies need to be developed and deployed.” Crane called this “the mother of all issues” and said “someone needs to go after it, and that someone is us.”
"As a coal investor it would be foolish not to fully learn about NG, DG, EE, DSM, smart grids, solar, wind, utility tariff and structure, nuclear, etc"
Been there done that, even did my time as an Itron (ITRI) shareholder. That's the smart meter folks. None of what you speak of is new its all been around a long time 10 or 20 years. What's new is the government meddling in free markets. I got sick of these companies with big glorious stories and all they want to do is #$%$ away money they bring in from continuous equity Issues. None of them have what Buffet calls an economic moat. I've got a big appetite for earnings potential and positive cashflow. The big dog companies with experienced executives who can compete economically very well and rake in the cash for investors -- not burn it on years and years of earnings loss's.
Apparently energy economics is different than investor economics. Investors get paid for making good decisions, economists are like weather forecasters they get paid regardless. Until their customers realize they are just blowing sunshine up their methane turbines.
The renewable businesses aren't about "free markets" at all - they're highly dependent on government mandates and government incentives. Its not looking good for them with the new GOP seat wins.
Think you're wrong Joe why else would Bell waste his time HERE unless he's short. This isn't the Western U.S. Electricity board its the Peabody board. They have a good bit of Met coal too.
dstone it looks like Oil could have found a bottom here too, the Saudi's and OPEC are crying uncle.
Obviously you are short BTU and aren't having a very good week. How pathetic.
"es these new free market firms like Telsa, Solar city, first solar, sun power, Opower, Sun Edison, are very well capitalized, and they get new funding on the cheap"
New funding cheap -- as in issuing shares and diluting shareholders non-stop? You said it yourself, look at Capstone. That's some serious investing, let me tell ya...
Sure I understand DG but what is the point, its like posting on the GM & Ford boards that Tesla's $70,000 cars spell the death of their business. Its not relevant and gets old. Have a good day I have more productive things to do today than this sort of discussion!
We've seen Keith Williams' articles before, he is just a green energy Shill always saying black is white and white is black about Peabody. Always sadistically portraying good news as bad and omitting good news that he can't figure out how to recolor.
"The larger on-site power gen players like CAT(solar turbines), pose more of a threat to coal than CPST - I was just pointing out all the new DG that is occurring over the past few years....."
Let me get this straight you are saying that Microturbines, running on natural gas at a 50-80% efficiency, pose a threat to coal? Right now high-efficiency gas turbines don't compete with coal. DG Turbines are used for emergency power, peak shaving, or in remote applications where sufficient utility line capacity does not exist. An investment in coal is an investment in economical base-load power. Period. Most of us do understand that.
bellard these little companies are interesting, too bad they haven't been able to turn a profit yet. Good luck with them. Neither investing or energy sources are anything like horse-racing ---- there's no need to choose just one that you think is best. Buy a little of everything or none of certain one! Suit youself!
I just think its more fun to spend my time discussing companies I am long on. There's dozens of companies I am very bearish on, but why waste my time discussing them that's shareholders' problem!