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These extraordinary stock returns are odd, to say the least. If the world is to avoid the most devastating effects of climate change, the planet’s long-term needs are clear: Burn far less coal and turn it down as quickly as possible.
International Energy Agency’s warned All coal-fired power plants must be shut down or equipped with carbon capture technology within the next 20 years. above all stranded assets Coal — owned but never used — owned by fossil fuel companies is generally considered to be the most likely to be abandoned in the coming years.
This dim outlook has weighed heavily on coal company share prices in recent years. In Peabody’s case, the share price climbed above $42 in 2018 and then entered a long downtrend. It slumped close to $1 per share last year as the global recession slashed energy demand and power utilities began phasing out the most inefficient coal-fired plants.
But that was then.
Now, with increased demand and limited supply, the world is enduring some kind of crisis. Economist He called it “the first major energy shock of the green age.” Despite significant global investments in green energy, old backup fuels are back in fashion.
On Monday, a new report It was concluded by the U.S. Energy Information Administration that in 2021 “the U.S. annual coal-fired electricity production will increase for the first time since 2014,” a 21 percent increase over 2020. He expects this increase to be temporary.
However, the world economy is growing rapidly and there is a serious energy shortage especially in China and Europe. Natural gas in the United States was relatively abundant and cheap, and is replacing coal and oil as the source of electricity generation. However, the price has increased as supplies have shrunk. This, in turn, increased the demand for coal and contributed to the increase in coal prices. A cold and expensive winter is expected for the USA.
As global energy demand increased, coal exports from the US to China and other regions jumped. China relies heavily on coal for electricity generation. It has already started to allocate electricity, causing a drop in factory production and worsening global supply chain issues. Despite its stated commitment to reduce greenhouse gas emissions, China is scrambling to add it. coal consumables (with cleaner fossil fuels) liquid natural gas and oil).
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