Times are as tough as they have ever been in the Coal Industry

"It is safe to say that the coal industry, in the United States and globally, is currently suffering through one of the hardest times in its history.A perfect storm of competition, changing energy demands, politics and public perceptions have collided, inflicting significant harm to the industry that many say is irreparable. This, in turn, has led to massive job losses in some regions, heavy cuts in production and even bankruptcy filings from two of the largest coal mining companies in the nation.Cheaper natural gas can certainly take a large share of the blame for the struggle of coal, as utility companies switch from coal to natural gas for power generation. According to the U.S. Energy Information Administration (EIA) the amount of coal used for electricity generation in the United States is at a 45-year low.November 2015 marked the fifth consecutive month that natural gas was the leading source of power generation in the United States. EIA said generators produced 101,866 thousand megawatt hours (MWh) of electricity with gas in November versus just 87,789 thousand MWh with coal, the lowest monthly level since May 1980 when monthly coal use was 84,884 thousand MWh.According to Robert Godby, director of the Center for Energy Economics and Public Policy at the University of Wyoming, there are a number of factors playing a role in the decline of coal, but he points to the advances in fracking as the tipping point.“A lot of people will argue that regulation is the cause of the decline, and it has played a part, for sure, but the story of the recent past is more about what competition has done to the energy market,” Godby told Mining Engineering. “The war on coal was originally declared by natural gas in 2008.”The price of natural gas, which was at $13 per million Btu before the gas fracking boom, has fallen to as low as $1.68 in December 2015. Likewise, Godby said the cost of wind generation is now lower than the cost of generation from coal and the cost of solar generation is coming down as well. In addition to that, the demand for energy has changed in the past five years with more efficiencies in everything from building design to lightbulbs."