Coal Production Cuts Likely
Rising natural gas prices could mean good news for the country's coal industry...but there are still likely cuts to come in Central Appalachia. That's the gist of an article from SNL Finanacial. Earlier this year, gas was at less than $3 per MMBtu, which some call the "sweet spot" for coal to gas switching. Any higher than $3, and it's not as cut and dry a decision to switch to natural gas. But now, gas futures for November are trading at slightly higher than that: at $3.459 per MMBtu.