Coal Industry Decline
The global coal industry has been losing steam in recent years. As world leaders have been pushing forward with initiatives like the Paris Climate Agreement, the pressure has been mounting for the coal industry. The challenges are most visible in the
Coal Industry Decline
The global coal industry has been losing steam in recent years. As world leaders have been pushing forward with initiatives like the Paris Climate Agreement, the pressure has been mounting for the coal industry. The challenges are most visible in the world’s developed countries. For example, between January 2017 and December 2019, eleven American coal companies went bankrupt, including Murray Energy, which was the biggest privately-owned coal company in the country (Moritz-Rabson, 2019). Even though developing countries like Bangladesh continue to increase energy generation from coal-fired power plants, the decline of coal consumption in North America and Europe has continued to take a toll on the global coal industry. However, as coal companies struggle to find a path forward, some energy experts say that the development of coal-based liquid fuels could keep the industry from collapsing.
In an effort to fulfill his presidential campaign promise to save the coal industry, President Donald Trump appointed a team of individuals focused on scrapping numerous Obama-era regulations related to the coal industry. In 2017, the Department of Interior rescinded a federal rule that required coal companies to pay millions in royalties for coal mines located on federal lands (Wade, 2019). Nevertheless, even with a significant rollback in regulations targeting the coal industry, the decline of coal consumption has continued to put an enormous amount of financial stress on the industry. The decline has even proven to be much faster than many energy analysts originally anticipated. Abundant natural gas reserves coupled with falling renewable energy prices have radically impacted coal’s energy market share in the developed world (Roberts, 2019).
Coal as an Alternative Fuel
As efforts to reduce energy-related regulations have failed to revive the industry, some U.S. congressional leaders have been pushing legislation to subsidize coal as an alternative fuel to reduce greenhouse gases and climate change. Coal companies and industry lobbyists say that the development of coal-based liquid fuels would further support energy independence a