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Clearview Energy Partners managing director of research Kevin Book gives his outlook for the coal industry if Obama is re-elected.
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A -- -- about called American coal industry is being backed -- by regulation and cheap natural gas.
And many say its future can be determined by the presidential election for more.
I'm joined by Kevin book he's managing director at clean energy partners Kevin what impact that we seen on the coal industry.
Under the -- -- administration.
Well actually -- the biggest impact has been in the eastern coal producing areas especially in West Virginia.
And what's happened is that there's regulations that that limit the ways that you can dispose of the waste when you -- the -- -- which is very thin.
And which is very expensive to mine in the first place.
That's made it higher cost production for all of that.
Of the called -- not just the high quality -- sells overseas but also the cold it competes with -- natural gas for power plants in the east.
And and that's been one of the big impacts that's affected a lot of the market share offer for grow coal producers throughout that -- the following period the natural gas prices we've had.
Obviously if -- President Obama is reelected how do you see the coal industry faring then.
On most of the energy policy issues that the candidates.
Differ more in terms of degree -- direction but this case it really could make a difference almost immediately.
The Obama administration used something called guidance very informal regulatory protocol to establish rules for the disposal of mining waste.
That guidance could be changed on day one similarly the EPA has taken a new.
Interventionist stance on coal mining permits and that interventionist stance could also be changed by the Fiat of the president.
Without any any sort of latency or delay too big things it would change the regulatory overhang almost immediately.
Our biggest amount that I'm not wrong is from power plants -- abundant coal is -- -- non falling as well aware that continue to full is the president is reelected.
Well -- the differences between the candidates at the smokestack or less dramatic than they are at the mine mouth.
If you look at what it what -- of the power plants there's regulations that are already threatening to shut down probably you -- between 26 and forty -- watts of the roughly.
310 that are that are generating power today.
That impact is going to be more or less baked -- we don't expect a big change there what could change though is the degree of enforcement and urgency.
That that brings those shut down so lay around administration could be more lenient -- exercises prerogatives to slow down the rate of shutdowns and that would be less dramatic.
In terms of its negative impact on coal demand.
I -- -- it all boils down to giving can't we have a prosperous coal industry while protecting the environment at the same time.
I think absolutely we can.
A lot of the arguments against coal have stemmed from the pollution that's emitted from combustion if we look at where coal is going right now it's mostly going to Asia.
And so the big question that the next administration whoever wins we'll have to wrestle with his.
What are you going to do about JD the exports the represented the incremental demand for US producers their future relies on traversing the open -- to the market that wants the call.
Production costs won't be such a big problem if the market is open.
It a -- hanging in the balance for the coal industry yet thank you so much Kevin book with clear and -- -- energy.
