Lee Buchsbaum writes that U.S. coal producers increasingly find it more profitable to export their product:
With the falling dollar, selling to Asia, Europe or South America is giving coal producers a higher return than selling into the United States. "If I were running a coal company and I looked at what’s happening on Capitol Hill and the states, I’d be very inclined to send my marketing team overseas," said Michael Morris, AEP chairman, president and CEO. "That’s where it appears the growth market is going to be, not here domestically."
In 2007, the United States exported almost 60 million tons of coal. This year, many expect that figure to be between 80 and 90 million tons. Estimates for 2009 are even higher at 100 million tons. Through June of this year, producers sent 40.4 million tons overseas, up 57 percent from 2007.
In particular, note this:
Utah, Colorado and PRB coals are also traveling further and, recently, are being shipped in increasing amounts to the West Coast for deep-pocketed Asian customers.
As Ted Nace points out (via email), much of the Western coal in question is mined on leased public land. The federal coal leasing program rents out that land at $3 an acre with a royalty of "12% of the gross value of the coal produced."
To translate that to English: American taxpayers are subsidizing coal being sent to China to be burnt in dirty coal plants and fry the planet.
There’s plenty of legitimate debate over how best to mitigate climate change, but surely everyone can agree on this initial strategy: stop subsidizing it.
Copenhagen, U.S.A. December 7
Comments
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wesrolley Posted 4:08 am
26 Dec 2008
Wes Rolley
CoChair - EcoAction Committee
Green Party US
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Peter B. Meyer Posted 7:07 am
26 Dec 2008
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Pompey Road Posted 11:18 am
26 Dec 2008
The thought behind developing a market for coal in China is sidestepping current and future environmental and clean air standards. Yes Eastern Coal is higher in BTU but most times higher in sulfur than Western coal, that in most cases does not have to be washed. Western coal for home market consumption for power generation because it comes closer to meeting current clean air standards. The Eastern coal is more expensive to mine in the Appalachian Mountains thus the need for Mountain Top Removal. It is just cheaper to strip mine large blocks of coal laying just under the surface on flat prairie land out west. To try to compete with Western Coal the Eastern coal corporations got the 77 Surface Mine Act weakened. Instead of having to put the over burden back on the original contour now you can push it over into a valley and cover up a fresh water stream. The Chinese don't give a damn about clean air standards which will give the High BTU, High Sulfur Eastern coal a way around from having to compete with Western coal that is much cheaper to mine and cleaner, "granted the term clean here is relative".
So not only are we subsidizing the sale of coal to Asian markets we are helping create a market where we can sell our dirty coal and thus sidestep any foreseeable clean air regulations. Byrd may seem like a doddling old fool but he is smart like a fox when it comes to developing markets for W.Va. Coal.
The eons of time and nature was good to us down here. It was not until we become civilized that destroying our habitat become fathomable or fashionable.
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PurpleOzone Posted 11:40 am
26 Dec 2008
so we packed them up and second-handed them to China..
and the clouds hang over our sky now.
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Ted Nace Posted 3:20 am
27 Dec 2008
Help build CoalSwarm-- a shared informational resource on coal and alternatives to coal.
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GRLCowan Posted 5:51 am
27 Dec 2008
As a benchmark, maybe, what is the percentage take for salt mined from public land? (Much salt is mined, bought, and sold, but no-one ever talks about how government subsidizes it.)
--- G.R.L. Cowan (How fire can be domesticated)
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Sam Wells Posted 8:34 am
27 Dec 2008
Onward through the fog
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