Coal under pressure:

BLUEFIELD — Coal will burn, and while coal’s fiery nature drives turbines to produce more than half of the nation’s electrical energy as well as heats iron to make steel, coal has also fueled an often emotional debate between people who depend on coal to make a living, and people who believe coal’s impact on the environment is too costly a price to pay.

The slumping national and international economy has taken a toll on the coal industry during the past 18 months, and a new administration in Washington, D.C., that appears to sympathize with the position advanced by a vocal segment of the environmental community have combined to ratchet up the pressure on coal. But coal is a product of pressure, and when West Virginia Coal Association President Bill Raney called local civic leaders and asked them to organize an event similar to the summit at Logan in early June, the local wheels were in motion.

Raney approached the Greater Bluefield Chamber of Commerce, Princeton-Mercer County Chamber of Commerce and Pocahontas Coal Association to help host the summit. Within a few days, local organizers had received commitments from Gene Kitts, senior vice president of mining services for International Coal Group and Myron Ebell, director, Energy and Global Warming Policy Competitive Enterprise Institute to serve as speakers.

“The topics of this summit are going to drive the attendance,” Marc Meachum, president and chief executive officer of the Bluefield Chamber said. “We have some excellent speakers who are very knowledgeable on the topics of cap and trade, permitting and climate change legislation. As far as the people who have registered so far, we have a couple from as far away as Pennsylvania, some from northern Virginia and many people locally. We have more than 100 reservations, but we would like to have 200.”

The Coal Summit will be from 9 a.m. to 12 noon on Tuesday, July 28, at Fincastle Country Club. “We hope these speakers will bring greater understanding to the three key issues ... what they are and what they are not,” Meachum said. “As a chamber of commerce, we hope to serve as an educational conduit so our membership can get a better understanding of what the coal industry is facing.”

“The coal industry, as a whole, is under attack from all quarters,” Dan Pochick, president of Rish Equipment said. “Peabody and Arch Coal’s earnings did not meet expectations, and right now, there’s a lot of coal on the ground. There has been a 50 percent drop in output of steel. China’s demand is up a little, but the price and demand for metallurgical coal has been down. We have a bad economy, bad market and regulations ... Well, I don’t know where we’re headed.”

Pochick said the challenges now facing the coal industry appear to be greater than the typical cyclical nature of the business. “The cheap price of natural gas right now is having an impact on coal prices too,” Pochick said. “The opposition to the coal industry isn’t based on science. It’s almost like a religious thing. Everything that I have been reading indicates there is no relationship between carbon dioxide and temperature. Maybe Myron Ebell will be able to straighten that out.”

Despite the challenges, Pochick said that he expects coal will remain an important part of the U.S. and global energy supply. “I think there will be a continued need for coal,” he said.

Ted Pile, spokesman for Alpha Natural Resources expressed the same optimism. “We are starting to see improving conditions in the steel markets which is a good sign for metallurgical coal, but we will be coming off historic post-war lows in steel production,” Pile said.

“China has been consuming an extraordinary amount of met coal this year which influences global trading patterns and ultimately influences the international markets we do business in, primarily South America and Europe,” Pile said. Alpha is the nation’s largest supplier and exporter of metallurgical coal, according to a company press release. Alpha and its subsidiaries operate 50 mines in four states, 10 coal preparation and blending plants with more than 3,600 employees including Alpha and its subsidiaries.

In addition to steel-making coal, Alpha provides high Btu coal to electric utilities and other industries. “The thermal coal markets remain fairly stagnant because electricity demand is off 4 percent nationwide, which is a really extraordinary statistic,” Pile said. “I believe that electricity demand has only fallen once, year-over-year, since 1950.”

Rick Taylor of the Pocahontas Coal Association said he hopes that the Coal Summit’s message will reach the general public. “When I talk to people who are not associated with the coal industry about issues like cap and trade, they say to me: ‘You guys need to keep fighting that,’” Taylor said. “I come back and say to them that the people who will feel the biggest impact of cap and trade are the users of coal products and energy. That’s just about everyone.”

Taylor said the coal industry has done an effective job of removing the energy consumers from the plants that produce power. “Fifty years ago, you got to see what kept your home warm because you brought it into the house with you. Now, energy comes to the home through utility transmission lines. It’s hard for the public to sift through all the information out there and have a good understanding of what is taking place. I hope this coal summit will answer some of the public’s questions,” Taylor said.

Call or e-mail the Greater Bluefield Chamber of Commerce at (304) 327-7184 or (info@bluefieldchamber.com); the Princeton-Mercer County Chamber of Commerce at (304) 487-1502 or (pmccc@frontiernet.net) or the West Virginia Coal Association at (304) 342-4153 or (braney@wvcoal.com) for additional information.

– Contact Bill Archer at barcher@bdtonline.com

Local News

Search Results

Discussion

How would you describe your home heating expenses so far this winter? After voting, go to facebook.com/bdtonline to comment.

Site Map

Contact Us