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Dig, Baby, Dig: Making Coal Great Again. A Convincing Case for Coal

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6 minute read

 

From the Daily Caller News Foundation

By Gordon Tomb

Has the time come to make coal great again? Maybe.

“Coal is cheap and far less profitable to export than to burn domestically. so, let’s burn it here,” says Steve Milloy, a veteran observer of the energy industry who served on the Environmental Protection Agency (EPA) transition team for the first Trump administration. “It will provide an abundance of affordable and reliable electricity while helping coal communities thrive for the long term.”

The U.S. coal industry has been in a long decline since at least President Barack Obama’s regulatory “war on coal” initiated 15 years ago. At the same time, natural gas became more competitive with coal as a power-plant fuel when new hydrofracturing techniques lowered the price of the former.

In Pennsylvania, a state with prodigious amounts of both fuels, natural gas has all but replaced coal for electric generation. Between 2001 and 2021, gas’ share of power production rose from 2% to 52% as coal’s dropped from 57% to 12%, according to the U.S. Energy Information Administration. Last year, Pennsylvania’s largest coal-fired power plant shut down under the pressures of regulations and economics after spending nearly $1 billion on pollution controls in the preceding decade.

Nationally, between 2013 and 2023, domestic coal production declined by more than 30% and industry employment by more than 40%.

While the first Trump administration provided somewhat of a respite from federal hostility toward fossil fuels in general and coal in particular, President Joe Biden revived Obama’s viciously negative stance on hydrocarbons while promoting weather-dependent wind and solar energy. This absurdity has wrecked livelihoods and made the power grid more prone to blackouts.

Fortunately, the second Trump administration will be exponentially more friendly toward development of fossil fuels. High on the list is increasing exports of liquefied natural gas (LNG). “[T]he next four years could prime the liquefied natural gas (LNG) markets for a golden era,” says market analyst Rystad Energy. “[T]he returning president’s expected policies are likely to accelerate U.S. LNG infrastructure expansion through deregulation and faster permitting…”

All of which is in line with Milloy’s formulation of energy policy. We should “export our gas to Europe and Asia, places that will pay six times more than it sells for in the U.S.” says Milloy, publisher of JunkScience.com and author of books on regulatory overreach, fearmongering and corruption. “Let’s reopen mothballed coal plants, build new coal plants…”

Accompanying rising expectations of easing regulatory obstacles for natural gas is hope that coal can clear daunting environmental hurdles put in place by “green” zealots.

For one thing, the obnoxiously irrational EPA rule defining carbon dioxide — a byproduct of combustion — as a pollutant is destined for the dustbin of destructive policy as common sense and honest science are reestablished among regulators.

Moreover, clean-coal technology makes the burning of the fuel, well, clean. China and India have more than 100 ultra-super critical coal-fired plants that employ high pressures and temperatures to achieve extraordinary efficiencies and minimal pollution. Yet, the United States, which originated the technology more than a decade ago, has only one such facility — the John W. Turk plant in Arkansas.

The point is the United States is underutilizing both coal and the best technology for its use. At the current rate of consumption, the nation’s 250 billion tons of recoverable coal is enough for more than 200 years.

So, if more natural gas winds up being exported as LNG at higher prices, might not coal be an economical — and logical — alternative?

Nuclear power is another possibility, but not for a while. Even with a crash development program and political will aplenty, it is likely to take decades for nuclear reactors to be deployed sufficiently to carry the bulk of the nation’s power load. Barriers range from the need to sort out competing nuclear technologies to regulatory lethargy —if not misfeasance — to financing needs in the many billions and a dearth of qualified engineers.

The last big U.S. reactors to go into operation — units 3 and 4 of Georgia Power’s Vogtle plant — took more than a decade to build and went $17 billion over budget.

“The regulatory environment is better, but it still costs too much and takes too long to get new reactors approved,” writes long-time nuclear enthusiast Robert Bryce.

Can anybody say, “Dig, baby, dig?”

Gordon Tomb is a senior advisor with the CO2 Coalition, Fairfax, Virginia, and once drove coal trucks.

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Alberta

New children’s book demonstrates how the everyday world is connected to natural resources

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From the Canadian Energy Centre

‘Today’s youth have the opportunity to lead us into the future with innovative solutions for environmental challenges’

After a 24-year career in oil sands land reclamation, author Tanya Richens is sharing her knowledge with young minds.

Her new book, From the Earth to Us: Discovering the Origins of Everyday Things, explores the relationship between natural resources and the things we use in everyday life, from computers and water bottles to batteries and solar panels.

“There is a gap in society’s understanding of where things come from. We are a society driven by consumerism and immediate gratification. We order something online, and it arrives on our doorstep the next day. We don’t stop to think about where it really came from or how it was made,” Richens says.

“There’s an ever-increasing societal position that mining is bad, and oil is even worse… But there’s a simple hypocrisy in those beliefs, since so many things in our lives are made from the raw materials that come from mining and oil and natural gas,” she says.

The book, illustrated by reclamation artist Shannon Carla King, follows young Hennessy Rose and her Cavalier King Charles Spaniel Riley on a trip to a children’s summer camp.

Hennessy’s mom is a guest speaker on the origin of everyday items and the relationship between humans and the earth. Through detailed explanations of items surrounding her, Hennessy’s mom teaches the kids how rocks, minerals, oil and gas from the earth are used to power and aid our lives, creating items such as building supplies, food and hair products, camping and sports equipment, and cell phones.

Author Tanya Richens poses with her two books for children about natural resources. Photo for Canadian Energy Centre

“I thought a simple and fun book explaining the raw materials needed to make everyday items would be valuable for all ages,” Richens says.

“When people feel personally connected to natural resources, they are more likely to promote sustainable practices. Today’s youth will have the opportunity to lead us into the future with innovative solutions for environmental challenges.”

Richens‘ career began with Alberta Environment, where she was a coordinator of reclamation approvals in the oil sands. She oversaw technical reviews of oil sands reclamation applications, communicated with statement of concern filers, coordinated public hearings and provided support for legislative changes.

She moved from government to Suncor Energy, ensuring the company’s compliance on reclamation projects and led initiatives to obtain reclamation certificates. She now works as an independent consultant.

Drawing on her wealth of experience in the field, Richens’ first book, Adventures in Land Reclamation: Exploring Jobs for a Greener Future, seeks to excite kids aged 9-12 years about jobs related to the environment and land reclamation.

Hoping to get From the Earth to Us into the hands of teachers, Richens is heading to the Edmonton Teachers Convention in late February. She says the book supports multiple learning outcomes in Alberta’s new science curriculum for grades 3, 4, 5 and 6.

“Ultimately, I’d like people to understand and acknowledge their individual part in the need for mining and oil and natural gas development. Until the naivety and hypocrisy in the world is addressed, I’m not sure that real environmental change is possible.”

Richens’ books can be purchased on her website at tcrenvironmental.com.

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Energy

Federal Government Suddenly Reverses on Critical Minerals – Over Three Years Too Late – MP Greg McLean

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From Energy Now

By Calgary MP Greg McLean

Government in Full Reverse

Canada-U.S. Trade Relations is obviously the most pressing issue facing Canadians today.

It’s important to remember how we arrived at this point, but also to question the sincerity of the Liberal Ministers and leadership contenders who are now posing solutions, such as:

  • We need to diversify our resource trade
  • We need to build pipelines and infrastructure to get our exports to tidewater
  • We need to streamline our regulatory burden that stands in the way of development
  • We need to halt the escalating carbon tax
  • We need to reverse the capital gains tax increase

The Liberals are turning themselves inside out on the policy choices they have made over nine years, and put Canada in a precarious economic position vis-à-vis our trade position.

If you believe what they are saying now, these Liberal Ministers and leadership contenders are saying that Canada needs EXACTLY THE OPPOSITE of what they have delivered over these past nine years.

I can’t comment on whether these NEW Liberal policy positions completely lack sincerity, or whether they are the result of a ‘deathbed conversion’, but nine years of moving in the exact opposite direction to their new words has led Canada to where it is today – and that is nine lost years for Canadians, our prosperity, and our role in a complex world.

Below is another example of a specific morphing of a Liberal policy – to the one I helped put forth – 3 ½ years ago – regarding Canada’s policy on critical minerals.


Minister Late to Critical Mineral Strategy

Here’s a gem of wisdom from December’s Fall Economic Statement:

Canada will work with the United States and other likeminded partners to address the impacts of non-market policies and practices that unduly distort critical mineral prices.  This includes ensuring that market participants recognize the value of critical minerals produced responsibly, with due regard for high environmental standards and labour practices.

Then, on January 16th, the following from Canada’s Natural Resource Minister, Jonathan Wilkinson:

During a panel discussion in Washington on Wednesday, Natural Resources Minister Jonathan Wilkinson proposed that enforcing a floor on metals prices could be “one of the centerpieces of the conversations we would then be having at the G7” summit later this year.

Western nations have long warned that China’s dominance in everything from nickel to lithium has let the country’s producers flood the market with supply, thereby keeping prices artificially low for competitors. Wilkinson has touted price floors as a way to combat that market control.

What a great idea!

Here’s the relevant excerpt from June, 2021, from a dissenting report on the Natural Resources Committee, when I served as my party’s critic, in contrast to the government’s critical minerals approach at that time:

Recommendation 4: Coordinate with our allies to establish a dedicated supply stock of critical minerals, possibly through a physical storage and floor pricing mechanism for visibility and pricing purposes.

Excerpt: Canada is too small of a market to undertake this effort on its own, but it can play a key role with its longstanding leadership as the mining jurisdiction of choice in the world. Canada’s pre-eminent role as a financing jurisdiction for international mining is well understood. Although we are at the early stages of losing this historical leadership to Australia, acting quickly to solidify Canada’s leadership will be a strong signal. Australia and Europe have already established critical mineral strategies to offset the dominance of the market that China has exerted. At the very least, Canada’s coordination needs to include the United States, and probably Mexico (through CUSMA), as the ongoing funding of a critical mineral supply may require backstopping developments with a price amelioration mechanism. In essence, a floor price to ensure the protection of critical mineral developments from manipulating price volatility – and which has held back developments, or caused the insolvency of several of these developments, due to non-transparent world market pricing mechanisms. … Establishing a steady supply of these critical minerals will lead to more value-added opportunities, in conjunction with our trade partners.

FULL REPORT

Conservative Dissenting Recommendations

My question to the Minister:  ‘What took you so long?’

This approach was presented three and a half years ago – and the Government chose to ignore it then.  

No surprise now, perhaps, as we’ve seen this Minister flip-flop on so many of the nonsense policies he’s put forth or acquiesced in at Cabinet:

  • The Clean Electricity Regulations (still opaque)
  • Canada’ role in shipping hydrocarbons to the world
  • Building energy infrastructure

To say nothing of the various Cabinet decisions he has been a part of that have led to Canada’s current weak negotiating position with our allies.  We effectively have not had a Minister of Natural Resources under his tenure.

Nothing topped it off more succinctly than his speech at the World Petroleum Show, held in Calgary in September 2023, when his remarks on behalf of the Government of Canada left industry participants around the world questioning whether the Minister was ‘tone-deaf’ or if, in fact, he knew anything about natural resources.

It seems his move to the position I promoted – three and a half years ago – shows that he’s finally listening and learning (or un-learning his previous narratives, perhaps)– but it’s quite late in the day.  Time and our future have been wasted.

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