Also in this playlist...
This transcript is automatically generated
Well this week reporting the president's energy policy to the smell test and some say that the president's new EPA regulations are less about.
Saving the environment and more about putting the coal industry out of business in fact the president made it clear back in 2008 when he was running that.
Coal company would be in his cross hairs if he were elected president.
If somebody wants to build -- -- power -- they can do is just that it will bankrupt them because they're gonna.
Be charged a huge sum for all that greenhouse gas that's being emitted.
So will the president win his war on cold joining me now -- the founding partner of -- policy resolution group Scott Segal.
Scott Brent is up to date on this because we've been hearing about the fact that.
There's -- a -- group of people and environmental group that wants to go after the coal industry.
They blame them for all kinds of things are -- making -- headway.
Well in a in a sense yes because here's what's basically happened.
You know look coal industry and and by that I mean coal fired utilities folks that.
Use coal to generate electricity have been in in a difficult situation not only have they faced an administration which is using the full weight.
Of the regulatory state against them but they've also face low commodity prices for natural gas which have undermine the market the market -- -- they -- Even sell -- still represents about 40% of US electric power generation.
And that's a very large amount and one that cannot be easily substituted.
Either for with natural gas war with renewable or in combination it's -- hits an import an important part of the energy mix.
But how but how can my utility where I get my electricity in my home -- my neighborhood of utility -- they'd change.
To -- -- produced that utility from cold natural gas than they do that quickly or is that something is going to be expensive and I'm gonna get the bill for.
Well we've we've seen a fair amount of transition from -- a natural gas.
But at a at a certain point all of the easy transitions have been made in what is left now frankly is quite expensive for the American consumer.
If the president makes good on his promise that he he made regarding.
I knew carbon standards for electric power plants both existing power plants and and in fact -- -- once it might be newly constructed.
We're gonna look for probably an additional 60%.
Of the coal fleet to be retired prematurely.
And frankly the only way that happens is with a substantial.
Amount of increased expenditure.
-- for households for school yeah hospitals.
Well as easy as he even said that I -- -- he's not trying to -- they'll listen to this man did he will tell you what he's thinking.
But he said gag your your electricity rates are going to skyrocket as a result of this so he he wasn't trying to hide behind that.
-- -- though you know when you get into this continue.
If I owned -- coal mine could I still mind of Mike Cole.
And put it on a boat to China and sell -- there and get around -- EPA rules.
-- Tom that's precisely what is happening we're seeing a large uptick in the amount of exports of coal.
The the fact of the matter is and this may surprise some of your some of your viewers but.
China is say a large recipient and ending in the future there many plans to export more -- China derive some 70% of its electric power.
Generation from -- They've had a 40% increase in coal usage in the last ten years so they are hungry marketplace for -- But you know with the number two quickest growth -- A country has been for consumption of United States -- Germany.
And you know Germany how -- -- -- they got their nukes yeah yeah that's right they cut their nukes and they -- and frankly they have increasingly relied.
On all on the very.
On reliable and expensive sources of renewable power.
-- force them to expand for base load generation they're not a cold they consider how to get interstate most Americans think Europe.
It is wouldn't wouldn't do that when it when it comes to all the choices have -- ways that we can produce energy and electricity and things like that in this country.
Correct me if I'm wrong but that that unless something's changed I -- natural gas is the new kid on the block but.
Cole has always been the cheapest by far compared to everybody else correct.
He got hit not only is is -- cheaper from unit perspective although with sustained low prices for natural gas.
There's there's certainly a lot of parity as far as those fuel sources are concerned but here's the real key.
Cold you can purchase sit in long term -- agreements you can store on site and you can use it in a fairly cost effective way as he needed.
Worst natural gas you have to be hooked into a particular infrastructure the pipeline infrastructure.
And and these long term contracts have not typically been a feature of the natural gas market so much more uncertainty.
When you move all coal out and replace it all with gas the key is diversity of energy mix is true diversity not just.
Not just lip service to renewables but coal oil natural gas nuclear -- -- nobles had an all the next.
Lot of great information there thank you so much for joining us.
Filter by section