The Wall Street Journal posted a story today about Arch Coal. The company has filed for bankruptcy.
The article reports:
As President Obama prepares to deliver his final State of the Union address Tuesday, we wonder if he’ll take pride in the damage his policies have done to the coal industry. According to the National Mining Association, 40,000 coal jobs have been lost in the U.S. since 2008.
The wealth destruction has been equally dramatic. Peabody Energy is a going concern, but its shares have declined by roughly 95% in the last year. Investor Paul Tice recently wrote in these pages that since 2012 “27 coal-mining companies with core operations in Central Appalachia, a region roughly centered in southern West Virginia, have filed for bankruptcy protection.” We told you in November that coal production nationwide has declined by about 15% since 2008. Reasons include slowing global demand and competition from natural gas in electricity generation. But commodity prices are cyclical, while regulation is forever.
Unfortunately the coal companies are not the only casualties of President Obama’s energy policies. Future casualties include utility customers.
The article further reports:
Even after recent declines in market share, coal-fired plants still provide roughly a third or more of American electricity. So utility customers will notice the coal carnage when they see their monthly bills—or perhaps when the lights don’t go on. But for now the pain is concentrated among those who used to work in the coal fields. They are still waiting for all those new green jobs Mr. Obama has been promising since he arrived in Washington.
Elections have consequences. Eight years of an administration strongly influenced by radical environmentalists have created joblessness, higher energy prices, and no real alternative forms of energy. We can use carbon-based fuel in ways that do not harm the environment. Since our economy is based on carbon-based fuel, it would be a good idea to elect a President who understands the impact over regulation can have on the economy. Our current President obviously does not.