don barrett

Coal-The Other Black Gold II

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I originally wrote a post on Arch Coal and the coal industry in the U.S. on May 26 and I went back and checked and Arch has gained about 15%. A couple of other coal companies I have watched are ICO and JRCC and as I'm a big chart watcher both of these companies and I would guess most coal companies have some very impressive charts. Coal is the other black gold and the U.S. will be in the drivers seat this time. The U.S. is getting crushed by oil prices now,but as far as coal we will be in the drivers seat. In fact the U.S. is shipping some vast amounts of coal now. Arch Coal is already shipping vast amounts of coal now and projected domestic and foreign use of coal will be exploding for years to come.
The EIA(Energy Information Administration) estimates that the DRB(Demonstrated Reserve Base) in the U.S.is 491 billion tons.The U.S. has more coal reserves than natural gas or oil.Due to land ownership and other obstacles about 264 billion tons of coal is recoverable.And the type of mining makes a great difference on the per cent of coal actually recovered. Underground mining only recovers about 40% of existing coal and surface mining recovers about 90% of the existing coal.
The EIA estimates the worlds coal reserves at 998 billion tons recoverable coal and the EIA estimates that at the current rate of production these reserves will last for 164 years! The other lovely thing about coal is where the most of the coal reserves are located. The U.S. has the lions share at about 27% of all the proven coal reserves.Russia follows with 17%,China with 13%,and Australia with 9%. And guess what percentage the Middle East has. Zero,zip,nada. As the Middle East has no coal the worlds energy picture is going to make a drastic change and this change puts the U.S. in the drivers seat!