|
94%
agree
17 votes
|
Coal is the cheapest way to feed world's energy demand |
|
0%
agree
0 votes
|
Coal demands outstrip production capacity |
|
75%
agree
4 votes
|
Coal production costs largely cyclical and determined by market forces |
|
50%
agree
2 votes
|
Regulations could cap coal sales |
|
50%
agree
2 votes
|
Commodity cycles put coal prices largely out of Arch Coal's hands |
May 22, 2013
Arch Coal (NYSE: ACI) is the second largest coal dealer in the U.S. The company is responsible for 8% of the electricity generated in the U.S.[1][2] The company sells coal mainly to power plants, steel mills, and industrial facilities.[3] Arch Coal produces about 16% of the U.S. coal supply at its 11 mining complexes in Wyoming, Utah, Colorado, West Virginia, Kentucky, and Virginia.[2]
Arch estimated that power generation declined roughly 4.0 percent in 2010, which represented the largest decline in power demand on record.[4] The decline in the demand for coal and also the price of coal has had an adverse effect on Arch's sales volumes and profit margin. At the same time, the dominance of coal power plants as the primary source of electricity is being threatened by the increased use of natural gas and nuclear energy, and also renewable sources such as hydroelectric and solar power.
(Read more at Wikinvest
) - Company Overview
- Coal
- Trends and Forces
- Arch Coal is investing in clean coal technologies
- Arch Coal must comply with government environmental protection efforts
- Falling coal prices have lowered Arch's profit margin and lower demand for electricity has driven down sales volumes
- Inputs
- Production Constraints
- Safety Regulations
- Mine Divestiture
- Competition
- References
