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Exporting the Future of Coal

Government policies and low natural gas prices have led to significant switchovers among utilities from coal to more cost-effective natural gas. Up to 20% of total coal-fired power generation is scheduled to be taken offline by 2017. This retracement has massively negative implications for the coal industry, which is why companies here have been concentrating so heavily on exports lately. China and India are leading the charge in the East, and Europe is holding its own because of the reverse dynamic there, with natural gas being more highly priced. Coal companies with the ability to export are therefore likely to stand apart from the pack.

For more details, check out the following video.

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 April 01, 2013, at 6:46 PM, Paulson545 wrote:

    Under the Free Trade Act we have to allow the exportation of our Nat Gas and Coal. As the use of Nat Gas increases so will the price.

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Taylor Muckerman
TMFrunAMuck

Taylor is an Associate GM in our Fool International operations. Prior to that he covered all things Energy + Materials as an analyst. Over the years, he has built an investing skill set to rely on when evaluating companies inside and out. While at the Fool, he has made appearances on CNBC and Fox Business. In addition, he completed his MBA at the University of Maryland and will sit for the Level II CFA Exam.

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