Some good news for local economies battered by the War on Coal

Commentary by James Shott

It is a common idea among many Americans that coal as a major industrial fuel is dead, or at least dying, and cleaner fuels, like wind and solar energy, and natural gas, are taking over. There is some truth there; but there are other influences on coal’s recent decline.

Less costly natural gas has become the fuel of choice in power plants and for other industrial uses, not because of the natural relative price of the fuels, but because of the cost of regulatory demands on mining and burning coal that require enormous investments that have priced coal higher than natural gas. Remember former President Barack Obama’s prediction: “So if somebody wants to build a coal-powered plant, they can. It's just that it will bankrupt them.”

These regulations produced the closing of more than 400 coal-burning power plants, which dropped the demand for coal, and altogether put 63,000 people in the coal industry, electric production industry and related support industries out of work in just the last few years.

At just the right time hydraulic fracturing (fracking) became popular, after lying mostly dormant since its first commercial application in 1957, and that produced a boom in natural gas production at attractive prices to compete with coal.

Many think burning less coal is a great thing, because burning coal fouls the air and is dangerous to our health, a “truth” which loses importance when you know the actual infinitesimal improvement in air quality derived from burning less coal.

However, considering all those factors, and paraphrasing a famous quote attributed to Mark Twain, the rumors of coal’s demise have been greatly exaggerated.

Of course, coal will never regain its former dominance among industrial fuels; time and technological/industrial evolution would just as certainly, although much more gradually, have eaten into coal’s popularity without the help of the Obama War on Coal.

But the regulatory adjustments of the Trump administration, the growing acceptance of the idea that the climate change/global warming mania is dramatically overstated, the reality that coal is still the best fuel for many things, the fact that many countries that do not have domestic coal supplies depend upon it for fuel, and the improvement in coal-burning technology all point to a continued market for American coal.

And let’s not forget that fossil fuels made up 81 percent of the fuels used to produce electricity in 2016, and coal is still the primary fossil fuel in electricity production.

Industry insiders, like Murray Energy CEO Robert Murray, see a partial resurgence in coal. “Coal will grow back,” he told Fox Business Network’s Stuart Varney. “But we’re in a decline right now.”

He went on to say that Trump “can bring back at least half of those [63,000 lost] jobs as the economy grows and as he ends the regulations on coal.” He noted that we have not had a level playing field in coal; “the government has been picking winners and losers.”

And he told Maria Bartiromo, also on Fox Business Network, former President Obama closed 411 coal-fired plants, and that the Clean Power Plan which Trump ended recently, would have closed 56 more plants. That, he said, would have caused a steep spike in electric rates.

“As [Trump] grows the economy [and] brings jobs back to America, coal will participate in that growth because we are one-sixth the cost of a windmill and one-fourth the cost of natural gas,” Murray said.

Rep. Bill Johnson, R-Ohio, said, “The coal industry knows and understands how to mine coal … and protect our environment. We don’t do it the way it was done 50, 60 years ago.”

Here are a few pieces of evidence:

* Reports from the Kentucky, West Virginia and Virginia coalfield regions say that mines are cranking back up and miners are being rehired. Train yards are seeing cars filled with coal moving through them in greater numbers.

* Bluefield State College recently held a Job Fair to immediately fill 85 open coal positions at Wyoming and McDowell county mines that mine coal used in making steel.

* Fox News reports that in Wise County, Virginia, a “long-awaited revival is under way in this beleaguered Central Appalachia community where residents see coal as the once and future king. Trucks are running again. Miners working seven days a week cannot keep up with current demand.”

* Coal exports through Hampton Roads last month rose more than 50 percent from last year's level, led by a nearly five-fold increase at Newport News' Pier IX, according to the most recent Virginia Maritime Association statistics. "A lot of mines are open again," said Harry Childress, president of the Virginia Coal and Energy Alliance."

Few if any argue that the coal industry will return to its former greatness, but it will certainly endure for many years at a lower level if natural forces are allowed to work, free of politically correct environmental engineering.

When you replace regulations resulting from selfish ideological goals with a business regulatory level based upon common sense, good things can happen.

And for areas of the country like ours, that have suffered so greatly from Obama’s over-zealous EPA, this is good news.

Cross-posted from Observations

What's really important in this election

Commentary by James Shott

Almost everyone agrees that this is the most unusual election in his or her lifetime. We have two major party candidates with the highest disapproval ratings that anyone can remember. And each candidate’s supporters ignore the negatives and continue to support the candidate.

Democrat Hillary Clinton comes from decades in the political sphere as the wife of a governor, the wife of a president, a U.S. Senator and Secretary of State. Republican Donald Trump comes from decades in the private sector as a businessman and entertainment show producer, having first entered political life for the 2015 Republican primary.

Both have a long list of negatives their political enemies hope will disqualify them in the eyes of voters. However, there are important differences between them.

It wasn’t Donald Trump who for personal convenience as Secretary of State flaunted the rules and established procedures, taking the unprecedented step of evading the official secure government email system in favor of a private email server for government business, including classified information, then had the server scrubbed, destroying thousands of messages that were not only government property, but evidence, and then couldn’t provide a credible excuse for any of that.

It wasn’t Donald Trump whose possible-criminal situation caused untold irregularities in the operation of the State Department, the FBI and the Justice Department, including a “chance” meeting on an airport tarmac between the Secretary of State’s husband and the Attorney General of the United States, putting dozens of public servants in the position to destroy their credibility and trustworthiness to save Secretary of State’s backside.

It wasn’t Donald Trump whose vast experience in government in the U.S. Senate and the State Department resulted in neglecting dozens of requests for increased security prior to the terrorist attack in Benghazi, Libya resulting in the death of Ambassador Chris Stevens and three other brave Americans, and then tried blame a clear terrorist attack on an obscure Internet video, resulting in jailing the video’s producer.

And it wasn’t Donald Trump whose frequent profanity-laced tirades insulted and denigrated Secret Service agents and White House staffers.

But that was a long time ago, and since all of that was a long time ago, it probably isn’t relevant that it also wasn’t Donald Trump who worked for the Congressional committee investigating the Watergate cover-up many years ago, and was fired for lying.

But it was Donald Trump who took some money from his father, invested it in business and created hotels, casinos, golf courses and television shows. Some of his creations didn’t work out, as is not uncommon in the world of business. Luminaries such as Henry Ford, Walt Disney, F.W. Woolworth, Albert Einstein, and Bill Gates also sometimes failed. The best major league hitters fail to get a hit six or seven out of ten times.

It was Donald Trump who claimed business losses of nearly a billion dollars on tax returns many years ago, cancelling an equal amount of income over several years, using provisions in the tax code to reduce taxable income, just as most every American that pays taxes does, through deductions for such things as dependents, mortgage interest and charitable giving.

For taking legal tax deductions Trump has attracted mountains of criticism from his betters, who somehow twist this into meaning he doesn’t care about the country, or the military and dozens of other things. But the hundreds or thousands of people that work in his businesses do pay taxes, and that is significant.

And, yes, it was Donald Trump who managed to anger his primary opponents and many Americans with his petulant personal attacks of those who opposed and challenged him. His far-from-perfect manner leaves much to be desired, and his locker room vulgarity, spoken in private 11 years ago, really got people fired up. But if some rapper had used those same words as lyrics, it’d be #1 on Billboard.

Apparently, it’s a more serious offense to say things that offend someone than to put national interests at risk, to lose $6 billion of State Department funds and generally fail to competently run the agency you’ve been entrusted to run, and make millions giving $250,000 secret-content speeches to Wall Street banks that you publicly criticize. By virtue of merely having been elected a U.S. Senator and appointed as a cabinet secretary, you are thus qualified to be president, even if the best you did in those positions was inconsequential or harmful.

Strangely, people are more offended by Trump’s words than Hillary Clinton’s vicious attacks on her hubby’s numerous sexual victims and conquests, her position on coal mining and the Supreme Court, and her comments supporting open borders, spoken in a private $250,000 speech.

What Trump said that hurt someone’s feelings or shocked their sensibilities is worse to many than that Clinton put personal convenience ahead of national security and failed to protect State Department personnel who were in harms way.

Voters must put their hurt feelings aside, adjust their perspective and focus on the serious issues confronting the next president. They must understand that Clinton’s hubris already put national security at risk, and she will continue Obama’s dangerous, destructive, and unconstitutional policies.

Cross-posted from Observations

Commentary by James Shott

Those who lived in or near the southern West Virginia and/or southwest Virginia coalfields during the peak of the coal business in the 50s and 60s know that state and local economies thrived because of the tens of thousands of people employed by mining companies and the dozens of companies that supported the industry.

Bluefield, WV’s Norfolk and Western Railway yard was always filled with coal cars, many of them full of the world’s most widely used fossil fuel, that were bound for Norfolk, VA’s port, or ready to be unloaded into trucks for delivery. The rest were empty, heading back into the coalfields to be refilled and brought back for distribution.

They remember the bustling downtown that was the financial, shopping and recreational center of the region’s coalfields, and Bluefield’s population of well over 20,000 residents during the time of peak coal. These are valued memories of the good times.

Today’s population is half that size, and the rail yard is often empty. To those who have seen first-hand the decline of the industry and its effects on local communities, the industry’s decline is a very real and painful thing.

The decline began with natural technological advances, as mechanization gradually began putting hundreds of miners out of work. Over time other forces developed, affecting the industry, including the very recent rise of cheap natural gas. Through all of that, there was always a market for coal.

But the federal government’s assault on coal through excessive environmental regulation, spurred by the hotly debated idea that burning coal pours too much carbon dioxide – a gas essential for life on Earth – into the atmosphere, is the greatest problem. President Barack Obama put this attack into high gear. However, today our air is cleaner than it’s been for 100 years, mostly through evolving technological improvements.

Cloistered away in their comfortable offices in Washington, DC, our public servants frequently have no idea what life is like for those toiling away to pay the taxes that fund their salaries. Perhaps if they got out of Washington more, they would understand the problems they create for the people they serve.

This may be the case with Energy Secretary Ernest Moniz, who at the invitation of Sen. Joe Manchin, D-W.Va., finally visited the state after many invitations over the eight painful years of the Obama administration. But while in the state last week, Moniz suggested there is no war on coal, arguing to the contrary that the Obama administration is working to keep coal as an important part of a low-carbon energy future. He also said that cheap natural gas prices are primarily responsible for coal’s downturn.

The absurd idea that there is no “War on Coal” today would be hilarious, if the reality wasn’t so tragic, and the suggestion that the very recent drop in natural gas prices is the principal reason for coal’s decline is simply false.

This general situation was foretold by Barack Obama back in the 2008 campaign: “So, if somebody wants to build a coal plant, they can — it’s just that it will bankrupt them, because they are going to be charged a huge sum for all that greenhouse gas that’s being emitted,” Obama declared.

Assuming that Moniz has the capacity to recognize the misery the administration for which he works has caused for this region, or really cares about the people affected by its policies, visiting West Virginia much earlier in the administration’s tenure might have made some difference.

Hillary Clinton is on that same path. While campaigning in Ohio earlier this year, she said, “We’re going to put a lot of coal miners and coal companies out of business.” Trying to make that sound better, she said she favored funding to retrain those put out of work, but she didn’t say what kind of jobs and how many of them are currently waiting for trained workers.

Not long thereafter, while campaigning in West Virginia, she was asked about that comment by a tearful out-of-work coal miner, to which she responded that what she meant was that coal job losses will continue, according to the Daily Caller. See the difference?

Obama’s energy policy is like putting a square peg in a round hole. If you want to put a square peg in a round hole, take some time and think it through: You should gradually and gently reshape the square peg so it will comfortably and appropriately fit into the round hole. Obama’s method is to place the peg on top of the hole and beat it with a hammer until enough of the corners are destroyed so that the peg will go into the hole. And even then, it is a poor fit.

Just as horse-drawn wagons and carriages gave way to motorized vehicles when they came to be, coal’s role as a primary fuel would have changed as better methods evolved. Such a process would have been not only more humane and less destructive, but infinitely smarter than what has transpired.

Through the centuries humans solved life’s problems and improved their lives through applied intelligence. Somehow, they managed to do this without Barack Obama and the EPA.

Cross-posted from Observations