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Alpha Natural Resources CEO Kevin Crutchfield discusses the impact of government regulations on the industry.
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The coal industry gone through some tough times as many utility -- -- plant productions from coal to natural gas some say the declining cost of Nat gas isn't the only reason that the coal industry.
Getting hit really hard and joining us right now to talk about all of this.
David is the CEO about the natural resource is Kevin Crutchfield he says you say senator excessive government regulations.
Are a huge burden on the coal industry right.
Absolutely they they are what we've seen just in the last couple years.
Our 200 coherence and else to be close that's about 10% of United States' capacity.
And I often -- research sources we serve about one quarter of those so with our customers go away.
Unfortunately it means job loss for us now the president has sad that he favors and quote all of the above strategy which would assume.
Coal included but did you forget about cold -- I think the president's.
Version of all the above strategy seems to be more like a bumper sticker -- S because.
It's not all the all the above their their administration.
With regard to the EPA is promulgating regulations that is really constraining the use of -- make they make electricity you think he wants to kill coal power in America.
Look you know after four years.
It it sure seems that way to -- you know.
The consumption rate is down so yeah.
Where then.
10% of the nation's -- fleet has already been announced be retired and another 10% is apparel so it seems like that's the case.
-- to look at whether let's face it it's getting colder when you have.
Really cold winter 42%.
Of the nation uses coal for heat for electricity right.
So what does this mean for our electricity bills are heating bills on our bills this winter.
Well I think this a travesty and in this policy is what we're gonna see with the task.
I'm with these coal plants retiring they're gonna get replaced by something.
And most likely going to be natural gas to look we're -- natural gas fans of that.
As natural gas prices harmonized across the globe and natural gas prices are gonna go back up and so our electricity from.
Gonna -- people who can afford it least -- we've had some interest in coalitions for and against.
Coal over the past few years -- the coal miners coal miners are usually in lockstep with a with a democratic president but in this case.
Are they Maurer.
On your side well I think -- with respect to organize -- labor I don't think they've that they made an endorsement this year which is unusual.
I think -- they -- coal miners that worked in alpha are very observe it.
They're great folks there watching what's going on and I think it's pretty clear where they're gonna come down on this one.
And clear are these regulations that you're facing and then how expensive are that hundreds of billions of dollars a year attendant -- dollars.
With the cost of all -- -- I can cite one is the most recent one -- the Mercury and air Toxics standards the most even by the EPA's own admission it's the most expensive that they've ever -- -- about a hundred billion dollars just the cost implement.
Notwithstanding there the cost in terms of job loss the cost in terms of higher electricity prices in the future.
And for us the loss of jobs are really good men and women which is a very difficult things that -- is it is there a direct connection between these regulations.
And the jobs that are being lost.
-- at absolutely unequivocally we look there have been times in the past when natural gas prices are cheaper.
Than they are now and -- was a 50% of the nation's electricity grid.
And today we're losing market share very rapidly so you have to ask yourself what's the difference between now on a decade ago.
It's the regulation.
Certain regulatory environment where utilities can't plan right now.
And you could stay competitive right now kinda based on -- high net cash right now right.
He sat around four dollars it's close it it is -- up a little bit but it's it's it's close and that's we announced the strategic repositioning plan recently to try.
To get herself situated to compete in what looks like a much smaller United States market.
But also stay focused on the external or the international growing markets Kevin Crutchfield from alpha natural resource is.
A coal company good to see and thank you for being don't have --
