From the EIA website:
| The following average spot coal prices appear in the graphic below, for the previous and most recent weeks: | |||||
|---|---|---|---|---|---|
| Week Ended | Central Appalachia 12,500 Btu, 1.2 SO2 |
Northern Appalachia 13,000 Btu, <3.0 SO2 |
Illinois Basin 11,800 Btu, 5.0 SO2 |
Powder River Basin 8,800 Btu, 0.8 SO2 |
Uinta Basin 11,700 Btu, 0.8 SO2 |
| 11-Jan-08 | $58.30 | $61.75 | $34.00 | $11.65 | $24.00 |
| 18-Jan-08 | $58.30 | $61.75 | $34.00 | $11.85 | $33.00 |
| 25-Jan-08 | $59.90 | $63.00 | $34.00 | $12.30 | $33.00 |
| 01-Feb-08 | $59.90 | $63.00 | $36.00 | $12.55 | $33.00 |
| 08-Feb-08 | $59.90 | $70.00 | $36.00 | $13.10 | $33.00 |
| 15-Feb-08 | $66.95 | $70.00 | $46.80 | $13.10 | $33.00 |
In an often biting and blunt review of what to expect in the generation market, Power Magazine has clearly elaborated on some of the key challenges the energy industry will face over the next year. The opening paragraphs are perhaps the most blunt.
Predicting the U.S. power industry’s 2008 performance requires understanding how utilities and other plant developers respond to risk and uncertainty. Three years ago, mercury controls had the undivided attention of every coal plant operator. Today, the imminent arrival of carbon controls has caused a tectonic shift in the industry. In years past, builders of new power plants focused on getting grandfathered out of new regulations. Today, developers are canceling plants before the climate change debate in Congress has ended, already assuming the results will be bad for them.
Even the mere anticipation of carbon controls, and the sea change they will bring to the U.S. economy, has created strange bedfellows and stranger enemies. Environmental groups are now embracing nuclear power because they perceive it to be the lesser of two evils—after coal. Proposed carbon cap-and-trade regulations have executives of nuclear and wind power utilities vilifying their counterparts at coal-based utilities, who are asking for “need” allowances to ease the transition.
Thirty years ago, America’s major utilities faced common challenges arm-in-arm. That time has passed.
The article goes on to detail the prospects of the main forms of energy; sadly, none of their findings are good.
Nidhi Nath Srinivas, of the Sunday Economic Times (India Times) elaborates on why you should have coal in your investment portfolio.
You are playing crude oil and natural gas futures. You love ethanol. But if you haven’t got a fix on coal, your energy sector portfolio sucks.
I can give five reasons why you should start taking coal seriously.
Read Srinivas' reasons here
From the AEP website:
Coal Offers
American Electric Power Service corporation (AEPSC), acting as agent for the AEP System Companies, is seeking proposals for the supply of coal to one or more of its generating stations. Specifications may vary. Delivery may be made by rail, barge, or truck.
1/31/2008 American Electric Power seeks low-sulfur coal offers American Electric Power (NYSE: AEP) announced today that its American Electric Power Service Corp. (AEPSC) subsidiary is seeking offers for the supply of low-sulfur coal to one or more of its generating stations.
Read the remainder of the coal offer requests on the AEP website
From the EIA website:
| The following average spot coal prices appear in the graphic below, for the previous and most recent weeks: | |||||
|---|---|---|---|---|---|
| Week Ended | Central Appalachia 12,500 Btu, 1.2 SO2 |
Northern Appalachia 13,000 Btu, <3.0 SO2 |
Illinois Basin 11,800 Btu, 5.0 SO2 |
Powder River Basin 8,800 Btu, 0.8 SO2 |
Uinta Basin 11,700 Btu, 0.8 SO2 |
| 07-Dec-07 | $57.70 | $55.25 | $33.50 | $11.50 | $24.00 |
| 14-Dec-07 | $57.70 | $55.25 | $33.50 | $11.50 | $24.00 |
| 21-Dec-07 | $57.70 | $55.25 | $33.50 | $11.50 | $24.00 |
| 04-Jan-08 | $58.30 | $61.75 | $34.00 | $11.60 | $24.00 |
| 11-Jan-08 | $58.30 | $61.75 | $34.00 | $11.65 | $24.00 |
| 18-Jan-08 | $58.30 | $61.75 | $34.00 | $11.85 | $33.00 |
Coal Trading Handbook 2007
From the Coal Trading Handbook website:
The COAL TRADING HANDBOOK: An Insider’s Guide to Coal Trading and the Coal Industry.
- Coal Industry Fundamentals: a no-nonsense ‘coal primer’ with detailed analysis of the supply, demand and volatility drivers.
- Global Coal Markets: a comprehensive overview of supply, demand, ocean freight and trading.
- Who’s Who: top coal producers, biggest mines, leading consumers (separated by regulated and unregulated), major exporters, major importers, active OTC traders (U.S. and globally), major synfuel operators, leading OTC brokers.
- A ‘Nuts and Bolts’ Trading and Hedging Manual: options, forward curves, basis trading, swaps and structured products.
- Before and After: ‘Pre-OTC’ risk management techniques used by the traditional players. Hedging & trading strategies used in the OTC and futures markets.
- Devil in the Details: standardization issues, scheduling, risk management, credit, legal, etc.
- Getting Started: dealing with OTC brokers, OTC FAQ’s, establishing a trading department in your organization, etc.
- Correlation Matrices: measures the price relationship between CSX coal, Nymex coal, PRB coal, natgas, heating oil, SO2, Nox, OnPeak electricity, OffPeak electricity and the share prices of the top four coal companies.
- Valuable Market Data: global trade patterns, price history, forward curves, basis spreads, implied volatility, historical volatility, OTC trading volume, share price history.
