Tuesday, February 24, 2009

Byrd Stimulus For Coal

United States Senate
Washington DC 20510

February 19, 2009

Dear Friends:

Over the years, there have been many myths written about coal.

It was once said that coal grew from seeds in underground caves, guarded by demons and dragons. Coal was once praised for its medicinal powers to protect against plague, while others cursed it for causing baldness. In 14th Century England, King Edward I – you will remember him as Longshanks from the movie “Braveheart” – launched the medieval environmental movement when he tried to ban the burning of coal, proclaiming that anyone caught using it would suffer the loss of his head. In 19th Century America, coal was considered a “green” alternative energy, advocated by those who opposed the hunting of whales for oil, and the destruction of forests for wood.

The myths and varied perceptions about coal continue to proliferate to this day, often shaped more by environmental and safety concerns than by recent advances in the use of coal For instance, a lot of progress has been made because of the Clean Air Act, which addressed what was believed to be the major challenge in the 1970s and 1980s – acid rain. But, as we have seen, coal’s public persona continues to evolve. Now, carbon emissions are deemed to be the major challenge, and those of us who understand coal’s great potential in our quest for energy independence must continue to work diligently toward that new solution.

I recently met in my U.S. Capitol office with the new U.S. Secretary of Energy Steven Chu. I wanted the new Secretary to recognize the critical importance of coal to America’s energy future. I endeavored to enlighten him as we discussed a previous comment that he made about coal’s being our “worst nightmare.” At my request, Secretary Chu agreed to visit the National Energy Technology Laboratory in Morgantown, to see West Virginians at work making coal cleaner and more energy efficient through technology.

In addition, I have helped to secure $3.4 billion for clean coal technologies in the stimulus bill recently passed by the Congress and signed by President Obama. This is an enormous sum of money, in terms of what is usually possible in the annual appropriation process. These are dollars which will both create jobs and move us toward a cleaner environment and energy independence.

I remain bullish about the future of coal in our national energy policy, and so very proud of the miners who labor and toil in the coalfields of West Virginia. In Washington and in West Virginia, this time holds great promise of a new era, putting an abundant supply of clean coal to work for an energy independent America.

With Kind regards, I am

Sincerely yours,

Robert C. Byrd

Friday, February 20, 2009

The Sky ISN'T Falling

Here is a little more proof that the media spin is negative.

Before you read this:

  • This is a Pittsburgh paper
  • The vast majority of coal produced locally is used for electricity production-off less than 3% as quoted in the article
  • Our local mines have been working OVER capacity to provide coal to the steam market in 2007 and 2008. Dropping production by 3% at a mine that produces 3 shifts per day, 6 days per week amounts to 0.54 shifts of reduced work per week. My guess is that most miners would be thrilled to work a few less hours after working pretty much every weekend for years.
  • The 84 Mine closure announcement was first made way back in 2006. The “loss” of these jobs is old news.
  • Speaking of old at 84… We have worked a lot at that mine (it is 15 minutes from here). Many of those jobs were retirement age people anyway. The UMWA retirement package is defined benefit-so it is not impacted short term by the economy.
  • There is a shortage of people in coal right now. So, throwing anyone into the market for our other mines will actually help alleviate a real problem.
  • The mine in Northern WV that they reference is actually in Western Virginia. Almost all of its coal is for the steel market. That mine is 4 hours from here. I know it belongs to Consol, but why is it news here?
  • The picture stinks
  • The price of coal on the spot market in June of “06 was about $36/Ton. We were mining like crazy at that price. Do you think we’ll be OK at today’s spot market price of $66/Ton?
  • Consol’s average price per ton already sold in 2009 is $61.56. They have sold 95% of their capacity in 2009. Their average price per ton in 2008 was $48.77. Their direct cost to mine a ton in 2008 was under $32/Ton.

Don’t let the newspaper get you down. Maybe the headline could have been: “Coal still burns brightly in down economy”

Ugh.

http://www.post-gazette.com/pg/09049/949786-28.stm