Coal Keeps Its Crown... for Now

Updated

Thanks to a jump in gas prices over the past year, coal is starting to gain back some of the ground it lost to natural gas in electricity generation. Back in April of 2012, the percentages of power generation from coal and natural gas in the U.S. were both standing very close to 32%. Those power generation figures stand at 40% from coal versus 25% from natural gas as of March 2013.

Despite the gains as of late, the long-term window for coal in the U.S. doesn't look as promising. Thanks to the large amount of coal facilities to be shut down in the next couple of years and more utility companies looking at other forms of generation, coal companies will need to look for a larger share of revenue coming from outside our borders. In this video, Fool.com contributor Tyler Crowe looks at some of the trends expected to come from utility companies over the next couple of years and what coal companies are doing to take advantage of the overseas markets.

Because exports are becoming a much bigger part of the domestic coal landscape, Peabody Energy has deals in place to get its cheaper coal from the Powder River and Illinois basins to India, China, and the EU. For investors looking to capitalize on a rebound in the U.S. coal market, The Motley Fool has authored a special new premium report detailing exactly why Peabody Energy is perhaps most worthy of your consideration. Don't miss out on this invaluable resource - simply click here now to claim your copy today.


The article Coal Keeps Its Crown... for Now originally appeared on Fool.com.

Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter, @TylerCroweFool. The Motley Fool recommends Exelon. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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