Mining Weekly reported that Andrew Mackenzie, CEO of BHP Billiton Ltd. (NYSE:BHP,ASX:BHP,LSE:BLT), believes that although the US shale gas industry is growing quickly, coal will continue to be the most dominant source of fuel worldwide for the coming years.
Articles Tagged "coal demand"
The Wall Street Journal reported that although 2013 was a tough year for coal, factors such as "booming" production from Wyoming's open-pit mines and demand from emerging economies like India and China will make for better prospects in 2014.
2013 US coal production and export numbers are expected to come in lower than they were in 2012, but Moody's sees this year bringing stability for those producing the fuel in the country.
In a study set to be released today, the University of Oxford's Stranded Assets Programme looks at what China's changing demand for coal will mean for Australia's coal assets, a question that has been on the minds of many market participants of late.
Bloomberg reported that according to the International Energy Agency (IEA), global coal consumption will rise by 2.3 percent per year until 2018. Last year, the agency predicted that coal use would grow by 2.6 percent per year through to 2017.
The Globe and Mail reported that Japan's coal use has increased as it "tries to lower the cost of replacing nuclear energy," with the result being that its 10 main utilities used almost 16 percent more coal in the first 10 months of 2013 than they did in the year-ago period. Further, they increased their imports of the fuel by 11 percent.
Reuters reported that according to Glencore Xstrata plc (LSE:GLEN), thermal coal prices are likely to rise in the medium term, partially due to high electricity demand in Asia. The fact that the fuel is currently in oversupply due to "healthy exports from major producers" and "modest demand" will also contribute to a price rise.
Reuters reported that many coal mine investments over the past 10 years were driven by Chinese demand for the fuel. As a result, the country's plan to address pollution is now threatening major coal projects in locations such as Australia, Indonesia and Mozambique.
Wood Mackenzie believes that by 2020, coal will take oil's place as the most dominant source of fuel in the world.
Reuters reported that according to a new report completed by German and Polish researchers, renewable energy groups and Greenpeace, by 2030, Poland may cut its coal demand in half by shifting toward renewable energies.