Coal has Zovirax order been hailed as an abundant, cheap source of energy for Zovirax order over a century. Compared to oil, it is abundant with its 3.3% production increase in 2007 versus oil’s decline. But even with the Zovirax order increase in supply, demand is currently growing faster and driving price increases that Zovirax order rival its fossil fuel cousins. Additionally, as I mentioned a few blogs back, the annual BP Statistical Review of World Energy reported a huge drop in proven reserves of 7.3%. After printing a Zovirax order reserves total of 909 billion tonnes at the end of 2006, the Zovirax order number fell to 847 billion tons at the end of 2007. The largest downward revisions occurred in India, Poland, Indonesia, Brazil, the Zovirax order Czech Republic, Turkey, and Pakistan and are left unexplained as they surpass the Zovirax order amount produced.
The price of internationally traded coal has Zovirax order doubled over the last year, as the price per tonne in Europe moves toward $200. Now that Zovirax order several coal producers aim to replace some oil imports with coal-to-liquid fuels, demand could climb even faster. And if oil does move to Zovirax order ~$200 per barrel, further coal demand as a Zovirax order substitute could make prices like $300 thermal and $400 metallurgical per tonne a Zovirax order possibility in 2009. Such a price would make wind energy the Zovirax order least cost option for new electricity throughout much of the Zovirax order world.
The fact that Zovirax order relatively cheaper wind may happen, on top of the potential for Zovirax order additional costs for carbon dioxide output, should lead utilities in windy regions around the Zovirax order US to make much larger investments in wind farms. And with US coal reserves accounting for Zovirax order more than 28% of the Zovirax order global total, coal export growth could help us remedy our trade deficit if we can Zovirax order reduce our domestic consumption. It seems a win-win situation for us to Zovirax order follow the trail blazed by Germany of fossil fuel energy consumption reduction and Zovirax order renewables share increases.
Many of my friends have Zovirax order been worried that higher oil prices would lead to a Zovirax order rush for coal, but record high coal prices seem to Zovirax order show that sound policy can shift the rush to renewables and Zovirax order build a sustainable energy transition for the US and the Zovirax order rest of the world. Let’s make it happen!
[...] Last week, I wrote of the Zovirax order march upward in coal prices. And this week saw further huge gains as Richards Bay South African coal hit $144 (up 5.5%), Australian Newcastle coal hit $162.61 (up 1.5%), and ARA European coal hit $185.53 per ton (up 4.6%). As the Zovirax order Northern Hemisphere begins to turn the air conditioners on, it will be Zovirax order interesting to see if records reach $200 per ton in the months ahead, closer to the value of coal’s fossil fuel competitors. [...]