Energy

Coal exports are expected to exceed record levels this year, according to the Energy Information Administration. By the end of the year, the country is expected to have exported 125-133 million tons of coal—which shatters the previous record of 113 million tons set in 1981. This is largely due to a very strong first six months of the year, and the EIA notes that since then, the global demand for American coal has been slightly waning.

Much like the first presidential debate, there was no mention of climate change in the second match-up between President Barack Obama and former Massachusetts Governor Mitt Romney. But there was more talk about energy than during the first debate. And, predictably, there was lots of work to be done by fact-checkers in the day following.

The Sierra Club and Kentuckians for the Commonwealth have filed a lawsuit against the U.S. Army Corps of Engineers, in hopes of blocking a surface mine permit in eastern Kentucky. Coal company Leeco, Inc. (a subsidiary of James River Coal) is seeking the permit for a valley fill at the Stacy Branch mine on the border of Knott and Knott counties. A valley fill is created during mountaintop removal mining--the mountain is partially removed to reach coal seams, and then the dirt and rock (or "overburden") is disposed of in valleys.

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.

The Indian media has been all over the recent scandal over the country’s coal allotments—the system where the state’s resources are divvied up among companies. And the various articles are of obvious interest to Kentucky, where a private company recently inked a $7 billion deal to send up to 9 million tons of Appalachian coal to India every year for the next twenty-five years.

An analysis out from the West Virginia Center and Policy--a nonpartisan think tank in Charleston--predicts that even while coal production in Central Appalachia declines, employment will rise. This may sound counterintuitive. But the analysis by Sean O'Leary says that could happen, due to falling productivity. In that case, it would take the same number of miners to mine less coal.

Environmental activists are gathering in Washington D.C. today for an anti-mountaintop removal rally. For the past few months, non-profit Earthjustice has been naming “Mountain Heroes” on its website—people who have dedicated themselves to fighting mountaintop removal and environmental destruction. Several Kentuckians are named, like Wendell Berry, Teri Blanton and Mickey McCoy and rock band My Morning Jacket. Others are from neighboring Appalachian states, like West Virginian Larry Gibson who died on Sunday from a heart attack.

According to a list released this morning, retail giant Walmart leads U.S. companies in solar power installations. Walmart has 144 solar systems installed in seven states; as the report notes, the combined capacity of Walmart and Costco (number two on the list) is greater than all the solar capacity deployed in the state of Florida.

Production is set to resume this fall at a decades-old oil refinery in Somerset that was largely offline the past few years because of a management dispute and bankruptcy. Demetrios Haseotes, a New York entrepreneur with interests in convenience stores, truck stops and other businesses, bought the idled Somerset operation in December.

The Sierra Club is planning a rally at noon today at the University of Kentucky to protest the ties between the school's athletic department and the coal industry. UK and the coal industry have a fairly close relationship--the men's basketball dorm is called the Wildcat Coal Lodge, after coal industry contributions, and there have been prominent coal advertisements during some athletic events.

The federal Mine Safety and Health Administration is reporting increases in the number of miners who have filed discrimination complaints after reporting safety violations. Federal law protects miners who report unsafe working conditions to employers, or refuse to work until the problem is fixed. But Assistant Secretary of Labor Joe Main says that after the explosion at the Upper Big Branch Mine in West Virginia two years ago, it was obvious many miners were afraid to exercise their rights.

A recent deal to send millions of tons of Appalachian coal to India could bring billions of dollars to Kentucky coal producers over the next twenty-five years. But it’s not very good news for climate change. The deal will ship up to nine million tons of Appalachian coal to India for the next 25 years. This is a lot of coal—nine million tons is actually about equivalent to the amount of coal purchased by the state of Virginia in 2010.

Nine million tons of Appalachian coal will be heading to India this year, after a new deal was announced yesterday between several Kentucky coal producers and an Indian company. This is good news for the struggling Kentucky coal industry—but it may not be enough.

A state official said Gov. Steve Beshear was set to announce a partnership on Wednesday which could reverberate throughout the coal industry in Kentucky. State Rep. W. Keith Hall told the News-Express on Tuesday that officials were expected to announce a coal mining partnership between a Kentucky group and the Indian government which could result in as much as 6 million tons of Kentucky coal being shipped to India each year. The partnership, Hall said, is expected to last as long as 25 years.

The New York Times has a story up today about a contentious mine in Owensboro, Kentucky. The Daviess County Fiscal Court voted earlier this month to allow a surface mine proposed by Western Kentucky Minerals. The mine would abut a Girl Scout camp: Camp Pennyroyal. Now, the decision is being appealed. But in the meantime, it's pitting residents against each other.

Alpha Natural Resources--a coal company with mines in eastern Kentucky, as well as throughout Appalachia--reported its second quarter earnings yesterday and the news wasn't good. The company had a net loss of $2.2 billion in the second quarter of 2012. That compares to a $50 million loss for the same period last year.