Nuclear, Coal Bailout Would 'keep America free' -US energy chief
U.S. Energy Secretary Rick Perry said on Thursday that bailing out struggling coal and nuclear power plants is as important to national security as keeping the military strong, and that the cost to Americans should not be an issue. "You cannot put a dollar figure on the cost to keep America free," he told reporters at a press conference in Washington, when asked how much the administration's effort to extend the lives of the facilities would cost. When asked about the cost of a potential bailout, he said he did not yet know.
U.S. Coal Exports Soar, Revived in Part by New Energy Policy
U.S. coal exports have jumped more than 60 percent this year due to soaring demand from Europe and Asia, according to a Reuters review of government data, allowing President Donald Trump's administration to claim that efforts to revive the battered industry are working. The increased shipments came as the European Union and other U.S. allies heaped criticism on the Trump administration for its rejection of the Paris Climate Accord, a deal agreed by nearly 200 countries to cut carbon emissions from the burning of fossil fuels like coal.
Commodities' Outlook: Will Trump Reality Match Rhetoric?
Beyond the short-term volatility as investors become used to the idea of President Donald Trump, the main risk for global commodities is how much of the campaign rhetoric translates into policy reality when the Republican victor moves into the White House. The problem global commodity markets are currently grappling with is that the new U.S. president hasn't articulated well-defined policies, rather his campaign was a series of slogans, threats and somewhat vague promises.
Union Pacific Profit Falls, Pressure on Freight Continues
Union Pacific Corp on Thursday reported a lower quarterly net profit that was hurt by falling freight volumes, especially coal, and warned the strong U.S. dollar, soft global economy and weak consumer demand would keep weighing on the No. 1 U.S. railroad's business in the second half of 2016. The company's shares fell more than 3 percent after the announcement. The Omaha, Nebraska-based company said overall freight revenue fell 13 percent in the second quarter, compared with a year earlier, led by a 27 percent decline in coal revenue.
Peabody Energy Cutting 235 in Powder River Basin
Peabody Energy Corp, the largest U.S. coal producer, said it would lay off about 235 employees at a mine in the Powder River basin, two weeks after the company flagged bankruptcy risk. The reductions affect about 15 percent of the workforce at the North Antelope Rochelle mine in the basin straddling Montana and Wyoming, the company said on Thursday. After reduction, Peabody's Powder River basin operations will employ about 1,500 workers, of which about 1,150 will be at North Antelope, the coal miner said.
Peabody Skips Interest Payment
Peabody Energy Corp, the largest U.S. coal producer, said it may have to seek bankruptcy protection as it did not have enough funds to continue operations. Falling demand for coal, tough environmental controls and cheaper natural gas have pushed several big coal miners, including industry No. 2 Arch Coal Inc, into bankruptcy in the past year. Peabody, which flagged the bankruptcy risk under the "risk factors" section of a regulatory filing on Wednesday, said it decided to skip a $71.1 million interest payment on its senior notes, kicking off a 30-day grace period.
U.S. Freight Volume Dips: Kemp
Freight volumes in the United States have fallen year on year for the first time since 2012 and before that the recession of 2009, according to the Bureau of Transportation Statistics. The total volume of freight moved by road, rail, pipeline, inland waterways and as air cargo in November 2015 was 1.1 percent lower than in the corresponding month a year earlier. Freight demand growth has been slowing since the start of last year but the slowdown intensified in the second half and November marked the first time that year-on-year growth turned negative.
As Coal Wanes, Consumers Key for U.S. Rails
Investors in U.S. railroad stocks, who have been punished in 2015 by an accelerating decline in high-margin coal shipments, now are pinning their long-term hopes on a resurgence in consumer spending. Their bet is that a strengthening economy will produce enough demand that railroads will be able to replace the income lost to years of declining coal use with so-called intermodal shipping - the movement of containers stuffed with clothing, furniture and other consumer goods.
Creditor Sues Arch Coal's Lenders
A creditor of Arch Coal Inc has sued a group of lenders alleging they are trying to use the struggling U.S. miner's credit agreement to block its out-of-court restructuring efforts and push it into bankruptcy. GSO Special Situations Master Fund LP, which holds some of Arch Coal's unsecured notes, has sought a temporary restraining order against the lenders. Arch Coal's restructuring plan includes a private debt exchange offer to swap existing senior notes for longer term securities.
U.S. Nuclear Operators Look to Save Plants
The U.S. nuclear industry has made a last-minute push to urge the Obama administration to protect the country's 100 nuclear units in its forthcoming carbon rule and prevent the early retirement of several plants. Representatives of the Nuclear Energy Institute met on July 21 with White House officials who are currently reviewing the final version of the Environmental Protection Agency's Clean Power Plan. The industry contends the original version of the plan, released in mid-2014, fails to encourage states to keep some "at risk" plants from closing.
DNV GL Forms Americas LNG Solutions Group
To meet the rapidly growing demand for a wide variety of LNG related services, DNV GL has established a group of LNG experts in North America. In addition to deep LNG expertise, the Houston-based “LNG Solutions Group - Americas” is also experienced in all business, risk and regulatory matters specific to the North American market. With the increasingly strict regulation of sulphur emissions in force next year and the already tightened Emission Control Area regulation for the U.S., ship owners are likely to feel more pain by the rising fuel prices.
Kemp: Time for a Good Sweating in Oil Markets
U.S. demand for petroleum products has experienced an unprecedented and broad-based decline over the last eight years as soaring oil prices have forced consumers to become more efficient and seek cheaper alternatives. Consumption of oil-based products has fallen in every major category - from gasoline, diesel and jet kerosene to heating oil, fuel oil, petrochemical feedstock, petroleum coke and asphalt, according to the U.S. Energy Information Administration.
Puerto Rico Power Authority Likely to Get Credit Reprieve
Puerto Rico's electric power authority, PREPA, is likely to get an extension of vital lines of credit in an agreement that could see lenders appoint a restructuring expert at the debt-stricken utility, a financial industry executive familiar with the situation said on Wednesday. The U.S. commonwealth's restructuring specialists and its Government Development Bank are in talks with banks to extend PREPA's loans of $671 million to March 2015, with an option to shorten the extension to the year end, said the source, who is in contact with the negotiating parties.
Walter Energy to Idle Canadian Coal Mines, Cut 700 Jobs
Coal miner Walter Energy Inc said it would idle its operations in Canada and temporarily lay off about 700 workers as it struggles with weak prices. Walter's shares, which have fallen nearly 70 percent in the past 12 months, rose as much as 5.7 percent in early trading. The company said it would immediately stop production at its Wolverine and Willow Creek mines in British Columbia, while its Brule mine in the same province would likely shut down by July.
James River Coal files for bankruptcy protection
Firm to enter into a $110 mln debtor-in-possession financing facility; continue evaluating alternatives such as sale of one or more parts. Shares slump 41 pct in extended trading. James River Coal Co filed for Chapter 11 bankruptcy protection after struggling with a steep drop in prices and demand for both thermal and steel-making coal. James River shares plunged 41 percent to 42 cents in extended trading on Monday. "The coal markets in the U.S. have changed dramatically during the past several years," Chief Executive Peter Socha said in a statement. U.S.
