Teetering on the Edge - Is the Future of Coal in Question?

by Bill Billeter, excerpted from an article in the August 1, 2007, Beckley Register-Herald

Under attack from powerful environmentalists and politicians, the future of the coal industry is uncertain, according to a number of coal company executives and industry leaders.

Nationwide, opposition is growing to coal-fired power plants because of their carbon dioxide emissions that contribute to global warming.

Although more than 50 percent of the U.S. electricity supply still comes from coal, it is getting harder to build coal-fired plants because of activist groups that file lawsuits, cause delays and raise operating costs.

Meanwhile, many in Congress are considering placing tough new regulations on carbon emissions, which would make burning coal more expensive and reduce coal use in the United States.

In a related development, even Wall Street analysts, not generally known for caring about anything other than profits, are starting to call the continued drumbeat for more coal mining a bad investment decision.

"The continued prospect of environmentalist litigation, including mountaintop removal mining challenges and associated reclamation work, serves as a reminder of the significant risk associated with (suppliers) operating in the Central Appalachian region," said David A. Lipschitz, a Merrill Lynch analyst.