Can Coal Rebound Internationally?

Coal companies here in the United States have had a rough go of it over the past 18-24 months due to natural gas, warm winters, and EPA regulations. Many of them are hoping for a pickup in their international business to carry them through this domestic lull.

With a senior analyst at the International Energy Agency claiming that Europe could be at the beginning of a "Golden Age of coal," along with Chinese and Indian projections for higher needs of the fossil fuel, these markets could help turn the tide for Arch Coal (NASDAQOTH: ACIIQ  ) and competitors like Peabody Energy (NASDAQOTH: BTUUQ  ) and Alpha Natural Resources (NASDAQOTH: ANRZQ  ) . To help ensure that it is ready for this change in focus, the U.S. is expecting a significant increase in export capacity on all coasts. 

For more specifics, check out the video below in which energy analyst Taylor Muckerman discusses why this dynamic shift is likely to take place.

The coal industry in the United States has been in a state of flux since the arrival of a cheaper alternative for energy production: natural gas. Exports are becoming a much bigger part of the domestic coal landscape, and Peabody Energy has deals in place to get its cheaper coal from the Powder River and Illinois basins to India, China, and the EU. For investors looking to capitalize on a rebound in the U.S. coal market, The Motley Fool has authored a special new premium report detailing exactly why Peabody Energy is perhaps most worthy of your consideration. Don't miss out on this invaluable resource -- simply click here now to claim your copy today.

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  • Report this Comment On December 14, 2012, at 1:19 AM, backwardated wrote:

    I might have said Peabody would be a good stock but they have just hired a new head of coal in Singapore who is not exactly known in the market for adding value, in fact the opposite. Personally if you had to pick a US coal stock I would go for Alpha Natural Resources as coking coal will most likely outperform thermal coal in the next year.

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