On Wednesday, American coal giant Peabody Energy accounted that it considers bankruptcy, thus indicating the end of an era for listed American corporate coal companies. Frankly speaking this statement somewhat contrasts with the fact that the company keeps fueling a huge chunk of the country’s power stations.
American largest coal miner might appear to be the latest in a wave of shocking bankruptcies to hit top US coal producers, such as Alpha Natural Resources, Inc., Arch Coal Inc., Walter Energy, Inc. and Patriot Coal Corp.
American coal miners keep struggling with the decline of steel production, low energy prices, high debt levels, new environmental regulations, not to mention the conversion of coal-fired power plants to employ natural gas made abundant with the help of shale drilling.
Obviously, the industry’s grieves arise amid a crucial political debate regarding the future of coal. The vast majority of Democrats, who pay much attention to the negative effects of fossil fuel burning, keep calling for cleaner energy sources. On the other hand, Republicans point out to probable job losses in the coal industry.