Those of us in the coal industry are no strangers to pendulum swinging business fluctuations. Coal supply and demand markets, both here in the U.S. and internationally, have been variable for many decades now.
In the coming months, public policy makers will confront difficult decisions regarding which federal programs to continue funding and which to cut. The coal industry will need to demonstrate more ardently than ever the value proposition it offers.
A case in point – It’s in our best interest as a nation to invest in domestic resources and clean energy technologies that yield the biggest return on investment for our tax dollars. The Energy Information Administration (EIA) recently released a report detailing financial incentives in the energy sector. The report indicated that in FY 2010, renewable energy, which accounts for less than four percent of total U.S. power generation, received 45 percent of federal incentives. Coal, by comparison, received 10 percent of the incentives although it generates 46 percent of U.S. electricity.
These facts must be given their due consideration as we work toward getting our financial house in order.
And finally …
Newton’s Law of Universal Gravitation: Every object in the Universe attracts every other object in the Universe. There is an invisible force compelling masses to move toward each other.
Perhaps the gravity of our economic situation, highlighted by the S&P messenger, will at last compel the coming together of the wildly disparate masses in Congress and the Administration. May the gravitas force be with us.
Cheers!
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