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Businesses Power United States

Fourth-Largest Coal Producer In the US Files For Bankruptcy (arstechnica.com) 256

An anonymous reader quotes a report from Ars Technica: Cloud Peak Energy, the U.S.' fourth-largest coal mining company, filed for Chapter 11 bankruptcy late last week as the company missed an extension deadline to make a $1.8 million loan payment. In a statement, Cloud Peak said it will continue to operate its three massive coal mines in Wyoming and Montana while it goes through the restructuring process. Colin Marshall, the president and CEO of the company, said that he believed a sale of the company's assets "will provide the best opportunity to maximize value for Cloud Peak Energy."

Cloud Peak was one of the few major coal producers who escaped the significant coal industry downturn between 2015 and 2016. That bought it a reputation for prudence and business acumen. But thinning margins have strained the mining company as customers for thermal coal continue to dry up. Coal-fired electricity is expected to fall this summer, even though summer months are usually boom times for coal plants as air conditioning bolsters electricity demand. That's because cheap natural gas and a boost in renewable capacity have displaced dirtier, more expensive coal. According to the Casper Star Tribune, Cloud Peak shipped 50 million tons of coal in 2018. The paper noted that after the bankruptcy filing, "speculation almost immediately began that Cloud Peak would sell its mines."

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Fourth-Largest Coal Producer In the US Files For Bankruptcy

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  • It Begins (Score:5, Insightful)

    by jwhyche ( 6192 ) on Tuesday May 14, 2019 @10:49PM (#58594374) Homepage
    And so it begins. I'm sure there will be a few more before to long.
    • Re:It Begins (Score:5, Interesting)

      by Anonymous Coward on Tuesday May 14, 2019 @10:55PM (#58594394)

      Yes, it begins. Trump government dolling out corporate welfare.

      • by Anonymous Coward on Wednesday May 15, 2019 @12:35AM (#58594566)

        trump does the thing he does best (well, second to lying, anyway)... bankrupting companies.

      • Re:It Begins (Score:5, Informative)

        by kurkosdr ( 2378710 ) on Wednesday May 15, 2019 @05:15AM (#58595140)
        Coal can only survive with corporate welfare because it's a bad energy source. Even if you take out the externalities of polluting the atmosphere with radioactive ash and soot, polluting rivers with mercury, destroying entire mountains to mine the thing and the contribution to climate change, coal is still a labour-intensive fuel. The thing that creates those high-paying miner jobs is the very same thing that makes coal uneconomical. I wouldn't be surprised if coal is kept on life support to get the miner vote.
        • by Layzej ( 1976930 )
          The trade war with China can't help: "China has targeted products including chemicals, coal [bbc.com] and medical equipment with levies that range from 5% to 25%."
          • by rtb61 ( 674572 )

            They are doing much more than that in China, https://www.youtube.com/watch?... [youtube.com]. They are doing a real push into coal direct liquefaction. It remains to be seen how efficient and clean they can get the process. In this case though extensive efficient coal liquefaction would simply kill oil and gas imports and of course the technology would spread globally, so, fracking gas and oil would die instead. It certainly is interesting fossil fuel times but the writing is certainly on the wall, they should have taken

        • Re:It Begins (Score:5, Informative)

          by mobby_6kl ( 668092 ) on Wednesday May 15, 2019 @08:15AM (#58595670)

          Mining is becoming less and less labor-intensive though, as coal now comes mostly from surface open-pit mines [eia.gov] where a bucket-wheel excavator [youtube.com] ran by half-dozen does the work of hundreds of miners. Which is killing all those high paying jobs.

        • Coal can only survive with corporate welfare because it's a bad energy source.

          The corporate welfare is mainly targeted toward mining companies in Ohio, Pennsylvania, and WV, which are swing states.

          Wyoming is solid red, and only has 3 electoral votes anyway. So they get screwed, even though they mine as much coal as the rest of the country combined.

        • Actually, being labour intensive is by far the best thing about coal. Petroleum needs very few people, but that means that the profits from the production can be commandeered by a small number of people. That's basically why most petrostates are oligarchies.

          Coal needs a lot of relatively well paid people to dig the coal out of the ground, it's dirty, dangerous, messy, but skilled work. That means that many of the profits get distributed over a relatively large worker base which is good for the economy.

          And h

          • Re: (Score:2, Informative)

            by Anonymous Coward

            Open pit mines or hill/mountain cap mines (the majority of the new coal "mines" opened today) are a lot less labor intensive than the days of deep coal mining. There is still the steep environmental cost of coal, such as mercury pollution of waterways and water tables, aerial release of sulfur, coal ash buildup and the release of radioactive particles to the atmosphere. Cleanup of these expensive environmental pollutants is often passed on to the taxpayer as the coal and energy companies have paid more than

      • Re: (Score:2, Insightful)

        by Anonymous Coward

        Um, tell me the administration in your lifetime that *hasn't* dolled out corporate welfare? You likely winked at it until you could start screaming "Trump!!!111!!!!"

        It's not as much as that you're wrong, it's a matter of you being inconsistent.

      • Re: (Score:3, Insightful)

        by Dukenukemx ( 1342047 )

        Socialism for the rich. Capitalism for the rest of us.

      • the courts blocked him. The laws don't allow him to just give out free cash and he's not (yet) a dictator. He'd have to pass laws and he didn't in his first 2 years and the Democratic House isn't going to let him give free cash to failing companies that also dump toxic sludge in rivers and the air. If he wanted Dem support he'd have to do strict EPA, safety and emissions guidelines and if you do that coal's loses money unless the subsidies are so huge as to be laughable.
    • And so it begins. I'm sure there will be a few more before to long.

      ... And that's not a bad thing.

      Move those jobs and investments to more profitable and forward looking industries. Coal is 19th Century- long over due being phased out.

  • good news (Score:5, Funny)

    by quenda ( 644621 ) on Tuesday May 14, 2019 @10:50PM (#58594378)

    With all those big automated open-cut mines going out of business,
    pick and shovel mining jobs will soon be booming again in West Virginia, just like the President promised.

  • Wait wait (Score:5, Funny)

    by JustAnotherOldGuy ( 4145623 ) on Tuesday May 14, 2019 @10:52PM (#58594390) Journal

    But but but Glorious Leader Trump said coal is coming back, "bigger and better" than ever; surely he wasn't fibbing, was he?

    Or was he talking about coal company bankruptcies?

    • *Clean* coal (Score:4, Interesting)

      by Anonymous Coward on Tuesday May 14, 2019 @11:51PM (#58594470)

      Actually he said "*Clean* Coal" Trump: "Coal is coming — clean coal. We love clean coal. And it’s coming back."

      Under the scheme, coal power stations are paid to produce and capture the CO2, to get a tax credit.... which *requires* they make the CO2 to be eligable in the first place. So solar doesn't count.

      And the *expansion* of the scheme under Trump makes the power prices *negative* (socialism for coal industry).

      https://www.forbes.com/sites/joshuarhodes/2018/04/19/how-clean-coal-could-make-a-tidy-profit/#e5d13aa56545

      "In the case of the coal plants, the estimated pre-credit bid would have been about $29/MWh, but the post-credit bids could be negative $9-16/MWh. This low bid would allow these plants to better compete in areas that have depressed wholesale market prices because of wind and solar. In fact, they could beat solar’s $0/MWh cost bids."

      In other words, they could sell power at a loss, by selling the captured CO2 to the Trump (i.e. the low and middle income taxpayers who pay taxes would pick up the tab).

      That would let them undercut solar on price.

      • Re:*Clean* coal (Score:5, Insightful)

        by meerling ( 1487879 ) on Wednesday May 15, 2019 @12:16AM (#58594522)
        Yeah, you know, if clean coal was real instead of just being a marketing campaign fairy tale.
        • by Hognoxious ( 631665 ) on Wednesday May 15, 2019 @12:56AM (#58594608) Homepage Journal

          Of course it exists. Next you'll be claiming that non-fecal shit is a myth too.

          • No, next they'll turn shit into butter. They have arrived at 50% success already, the spreading works, just the taste is slightly off.

        • Yeah, you know, if clean coal was real instead of just being a marketing campaign fairy tale.

          This reminds me of an advertising campaign in the US back in the 80's. Lots of medical folks were trying to convince everyone to eat less red meat and instead eat chicken.

          Big Pork came up with the slogan: "Pork: The other white meat".

          Which was totally missing the point, because from a nutritional standpoint, pork is in the league with red meat, not chicken.

          So I'm thinking, maybe Big Coal can come up with something like, "Clean Coal: It's also renewable . . . it just takes a few million years."

      • Wow, the US sure is the land of the future. You even have clean coal, but what I don't get, why aim so low, you could have gone for cold fusion.

        I mean, if you invent something, at least do something impressive.

      • by Nidi62 ( 1525137 )

        Actually he said "*Clean* Coal" Trump: "Coal is coming — clean coal. We love clean coal. And it’s coming back."

        Under the scheme, coal power stations are paid to produce and capture the CO2, to get a tax credit.... which *requires* they make the CO2 to be eligable in the first place. So solar doesn't count.

        And the *expansion* of the scheme under Trump makes the power prices *negative* (socialism for coal industry).

        https://www.forbes.com/sites/joshuarhodes/2018/04/19/how-clean-coal-could-make-a-tidy-profit/#e5d13aa56545

        "In the case of the coal plants, the estimated pre-credit bid would have been about $29/MWh, but the post-credit bids could be negative $9-16/MWh. This low bid would allow these plants to better compete in areas that have depressed wholesale market prices because of wind and solar. In fact, they could beat solar’s $0/MWh cost bids."

        In other words, they could sell power at a loss, by selling the captured CO2 to the Trump (i.e. the low and middle income taxpayers who pay taxes would pick up the tab).

        That would let them undercut solar on price.

        The only "clean coal" is the coal that's never mined in the first place.

      • In other words, they could sell power at a loss

        Operating a coal-fired power plant at a loss seems like a great business plan, please tell me more.

        Let me guess- you'll lose money on every sale, but you'll make up for it in volume?

    • Or was he talking about coal company bankruptcies?

      I think he was just talking shit.

  • I like how (Score:5, Interesting)

    by Jarwulf ( 530523 ) on Tuesday May 14, 2019 @10:55PM (#58594400)
    half the stories on here are how fossil fuel is weak and pathetic and going away on its own and the other half of stories are about how fossil fuel is entrenched and powerful and needs radical government action to purge it from the planet.
    • Yes but how many are about how we need a black new deal to prop up coal?
    • Re:I like how (Score:5, Insightful)

      by quenda ( 644621 ) on Tuesday May 14, 2019 @11:43PM (#58594452)

      half the stories on here are how fossil fuel is weak and pathetic and going away on its own and the other half of stories are about how fossil fuel is entrenched and powerful and needs radical government action to purge it from the planet.

      If you make some effort to read past the headlines, there is a lot to be learned. Energy is big money, which makes it powerful.
      We subsidise *every* kind of energy, be it renewables, fossil, or nuclear. Just in different ways.
      Coal is at the same time, the biggest source of power for many, and the most vulnerable. Gas is less polluting, and more able to fill the role of supplying peak demand. Vulnerable is not the opposite of powerful.

      • by The Rizz ( 1319 )

        Vulnerable is not the opposite of powerful.

        The muscle in your heel is one of the most powerful in your body. Achilles will confirm that powerful can indeed be quite vulnerable.

    • by Kiuas ( 1084567 )

      and the other half of stories are about how fossil fuel is entrenched and powerful and needs radical government action to purge it from the planet.

      It's not that fossil fuels need radical action to get rid of them. We're talking about perishing resources after all, so even if nothing is done, sooner or later fossil fuels will be replaced by other sources just because of the price, as evidenced by this story for example. The problem is however that in the meanwhile the costs of using fossil fuels are massivel

    • Re:I like how (Score:5, Insightful)

      by Sique ( 173459 ) on Wednesday May 15, 2019 @03:52AM (#58594978) Homepage
      It is both of them. Coal is deeply entrenched in the economic fabric of many countries. There are billions of investments in Coal and coal powered plants. There are gigantic supply chains depending on Coal. There are contracts for 25 or 50 years. There are not only thousands of people directly working in Coal mines, there are hundreds of thousands of people working either to supply the Coal mines or in the further processing of Coal. And thus, at many points in the chain, there are subsidies, there are political careers bound to, there are whole regions depending on Coal. Thus Coal has enormous political power.

      On the other hand, extracting coal is very expensive. You have large amounts of non-coal stuff, the excavation rubbish to remove and to store. Transporting coal is cumbersome as you have to load it onto trucks and freight wagons. Transporting them costs much energy and maintenance itself. And you can't do much other things than just burn the coal at fixed places, to generate heat for other processes, as the engines to effectively extract energy from coal are large and not very mobile.

      Oil and gas for instance are much cheaper to excavate. You have much less rubbish except for the one coming out of the boring holes. Both can be transported via tubes, which, once laid, cost not much to operate and don't require much energy themselves. You can turn them into chemicals. They are easily to transport and to distribute, and the engines to effectively extract energy out of them are very small, easily to fire up and to move around.

      So, Coal is really powerful and entrenched from a political point of view, but weak and vulnerable from an economical one.

    • What kind of witless, drooling moron is unaware that coal (failing) and natural gas (doing well) are both fossil fuels?

    • Indeed. Both realities exist at the same time.

      Renewables are already cheaper than their fossil counterparts. So in the long run it's sure that reneable energy is the future.

      But because the current fossil fuel industry is so powerful we are subsidising them to stay longer 'open'.
      To create a really massive transition to new energy sources we need indeed important political measures:
      * Reduce or elliminate any kind of support measures for fossil fuel (or any carbon release in general)
      * Massively invest in the i

      • by Strider- ( 39683 )

        The thing is, though, hydrocarbons are incredibly useful. There will always be edge cases where burning hydrocarbons is the only viable solution.

        I have a 27 foot sailboat that I often use to travel into remote regions. She has a 20 gallon diesel tank, and and when on the motor burns about a gallon every three hours, giving me a 60 hour range. Even if I were to replace my 2300lb keel with batteries, I wouldn't have nearly the range.

        That said, hydrocarbons so not need to come from fossil sources. For these ni

        • This.

          Its the 80/20 rule all over again. We can get 80% of the way by changing just 20% of our behavior.

          We don't need to completely eliminate fossil fuel. I bought a Tesla in 2013 so I'm personally committed to reducing my carbon footprint, but I'm still buying gas for my lawn mower.
    • Comment removed based on user account deletion
    • I'm not sure those two are mutually exclusive. Fossil fuel companies are entrenched. They manage to externalize all of their costs. Renewable sources don't get to do that. But renewable is getting good enough that, even with the subsidies, its slowly displacing carbon. However, that doesn't mean that it would be a bad idea to pull the plug on the fossil fuel subsidies.
    • half the stories on here are how fossil fuel is weak and pathetic and going away on its own and the other half of stories are about how fossil fuel is entrenched and powerful and needs radical government action to purge it from the planet.

      Apparently contradictory things can be true at the same time. I don't remember anyone saying "weak" or "pathetic" about fossil fuels, but many people do say they're going away on their own, including me. However, even if that's true it may still be necessary to use government action to purge fossil fuel use from the planet, because they're not going away quickly enough for necessary remediation of the biosphere, upon which we all depend for life.

      Some arguments simply cannot be simplified such that the simpl

    • Here's a radical idea - just stop the subsidies.

      A 2016 IMF working paper estimated that global fossil fuel subsidies were $5.3 trillion in 2015, which represents 6.5% of global GDP. (https://en.wikipedia.org/wiki/Energy_subsidies#Impact_of_fossil_fuel_subsidies)

      This is insane. It drives me crazy when I hear people say that subsidizing renewable energy and electric vehicles is a bad idea and insist we have to keep burning gas. What a bunch of brainwashed sheep.

      Simply level the playing field - no subsid
  • by e0b521bb9d0246d0b619 ( 5388043 ) on Wednesday May 15, 2019 @12:28AM (#58594548)

    Sounds like Chapter 11 isn't going to save this one... but I'm sure Trumpelstiltskin will step up to provide the requisite corporate welfare.

    • by Calydor ( 739835 )

      I was thinking the same thing. For a company that is the fourth-largest of its kind in the US, 2 million dollars should be pocket change.

      • For a company that is the fourth-largest of its kind in the US, 2 million dollars should be pocket change.

        Is true, you must lose 100M per year before oligarchs consider you for candidate. I already say too much, comrades.

  • seriously, the judge needs to push this into Chap 7 and shut them down.
  • Why is everybody so keen on reducing CO2 emissions but so few people talk about planting forests (that consume CO2)? Sure, there may be a cost (irrigation, maintance, land) but thats peanuts compared to what we spend on emission reduction. Why can you buy emission quotas but not plant forest and get emission quotas as a reward?
    • Re: (Score:2, Informative)

      by Anonymous Coward

      Nature article [nature.com]

    • Photosynthesis isn't very efficient. You can accomplish at least an order of magnitude better replacing coal with PV. As an additional benefit, PV can be deployed in useless desert areas where they don't compete with agriculture, and where they don't require water or nutrients.

    • If I recall correctly the stats show that we are planting lots of forests today than at any time in the past. Unfortunately, once they are past the early phase of growth they don't sequester carbon very quickly anymore. Most of these fossil fuel deposits are from before lignin could be broken down well, back during the carboniferous period; today wood rots completely given the chance. We'd have to grow forests, cut them down, and stick the timber down in some mineshafts and repeat to do the same thing.
  • Another one bites the dust.

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