Last year, total United States coal production was 18 percent lower than in 2015 and was the lowest level since 1978. Many companies were forced into bankruptcy. With gas prices rising in recent months, coal made a modest rebound at the end of last year, especially in the Powder River Basin of Montana and Wyoming, where the production economics are generally best.
Vic Svec, a Peabody senior vice president, said that his company was looking to make “a fresh start” as it comes out of bankruptcy, and that part of that fresh start was recognizing that fossil fuels “contribute to greenhouse gas emissions and concern regarding these emissions has become part of the global, societal regulatory landscape.” He added, “There is a market for low-carbon energy sources, and we want to be part of that future.”
Environmentalists say they believe that the coal industry, having dealt with a sharp downturn in recent years and facing an aggressive investor divestment movement, may be shifting its views on climate change more for its own business interests than any newfound love for the environment.
“To the extent that they are saying things that seem much more rational than in the past,” said David Hawkins, director of the climate program at the National Resources Defense Council, “they are trying to persuade skeptical investors that coal has a future.” Nevertheless, he added that his group was willing to work with the companies, even while it was suing them in court on other issues, “if they are willing to join in properly crafted legislation.”
The carbon legislation, introduced last year, would increase the federal tax credit for capture and sequestration to $50 per ton of carbon dioxide from $20. And it would expand available credits by more than a third for permanent storage for the purpose of flooding the carbon into declining oil…