The worries
of a global slowdown pushed oil prices to less than $82 a barrel
today... highlighting Porter's outlook of lower oil prices and higher
natural gas prices. A global slowdown plays into Porter's belief... But
he's more focused on the huge shift in the energy markets that's being
driven by the incredible amount of oil being found in the United States.
(For example, the oilfield we learned about at the Atlas meeting could
be the second-biggest in U.S. history.)
Falling
oil and low natural gas prices have destroyed the coal market... Coal –
which fuels roughly half the electricity generated in the U.S. –
competes directly with natural gas in the power market. But coal is much
dirtier than clean-burning natural gas (which makes it unpopular with
politicians). So with natural gas prices near record lows, the market is
avoiding coal. You can see the result in the following chart of Peabody
Coal (BTU)... the largest U.S. coal miner by volume...
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