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Politics : Politics of Energy
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To: Eric who wrote (23930)10/20/2010 9:33:26 PM
From: Jorj X Mckie  Read Replies (1) of 86355
 

I've known that for many years.

If you've known that for years why are you presenting it as an indication that higher BTU coal is becoming scarce.

80% of the state of Illinois still has a coal seam that is 6' thick at a depth of 300'. A bit below that is another coal seam that is 4' thick.

WestVirginia/Pennsylvania/Eastern Kentucky has 60 mineable coal seams at different depths.

Again, the only reason that there has been a decrease in bituminous coal production is that the sub-bituminous coal from west of the Mississippi is a better (cheaper per BTU) and because it has a low sulfur content. Not because of scarcity.

Cost to extract and final cost of delivery to the end user (the power plants) is the key. Costs are going to rise and in the end that will doom coal. Factor in "clean coal" plants and its dead in the water in the long run.

Unless of course you are a smart business man who decides to lock in the delivery costs by buying the railroad that delivers the coal. Some keywords for you to search: Pacificorp, Berkshire Hathaway, BNSF.

And another way that transportation costs are kept in line is by co-locating the power plants with the mines themselves.

China has no choice Jorj. They have to build plants they know will be obsolete and costly to run in the long run

I'm well aware of China's situation. But even you have to understand that there is no point in building plants right up until the day that you are predicting that they run out of fuel to run those plants. There are two options: 1. The chinese are stupid and are building plants that will never burn an ounce of coal or 2. You are misinformed.
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