The War on Coal has claimed a major victim.
The company said it will continue to operate while in bankruptcy, while working to reduce debt and improve cash flow.“Peabody has a new management team, outstanding workforce, unmatched asset base and strong underlying operational performance that represent a key driver in the company’s future success,” CEO Glenn Kellow said in a statement announcing the Chapter 11 filing.
In addition to plummeting coal prices, the company cited weakness in China’s economy, overproduction of domestic shale gas and ongoing regulatory challenges as reasons for its declining prospects.
Maybe you should include the big mistake Peabody took in Australia as a contributing factor. They bet big-time on selling coal to China and lost.
It’s biggest problem wasn’t Obama “War on Coal”……
And the story goes on to say, “While the new regulations have been put on hold by the Supreme Court, the industry has faced a number of other economic woes, including significantly lower prices for natural gas, which is a competing fuel used by electric utilities, and slowing economic growth in China, a major market for U.S. coal.
Renewable sources of energy are also getting much cheaper, further squeezing demand.”
The Economist has a great read for a more complete and un-biased review of the reasons for Peabody’s financial problems titled “From hero to zero: Peabody Energy Corp.”;
Obama certainly did not provide an economic environment to allow this company to thrive on this front.
Obama is a hater on good paying coal jobs.
kevin is resorting to calling people “haters” again. You would think that someone as holy as kev would be a little gracious. Always quick to label someone with an opposing viewpoint.
And now he wants government to fix all the woes caused by poor management by Peabody, “Obama certainly did not provide an economic environment to allow this company to thrive on this front”. I though all good conservatives wanted government out of business. Guess it is that flexible conservatism kevin subscribes to in action.
So Obama is NOT a hater toward good paying coal jobs?
Make that case.
You are the guy that likes to label people you disagree with as “haters”, so far be it from me to disagree with the all-knowing and omnipotent kevin.
But no, I don’t think Obama is a hater of good paying coal jobs any more than I think you understand the Peabody situation.
Obama does not hate coal and coal miners?
This is what Obama does to his friends?
Did you read this, “https://www.economist.com/sites/default/files/case_resolution_fictconsulting.pdf”? It explains the reasons Peabody had financial problems.
Don’t dispute that.
However, the inhospitable environment Obama created for this company did not help.
Obama has declared war on coal, which is declaring war on the poor and middle class that rely on cheap, efficient coal for energy.
The same folks who were against the auto bailouts want to have the government make a hospital business climate for the worst energy source we have ?
Those jobs are going away because of what Pat stated
It’s a dying industry that does irreparable damage to its workers and the land
Capitalism wins, coal loses
Mark is exhibit #2 of Obama’s detest ability of cheap, clean, energy for poor and middle class and the liberal war on these good paying jobs.
WI will suffer as a result.
Why do you ignore the root cause of why Peabody is going belly up? It’s competition and the free market. There are cheaper resources being used which is helping the poor, middle class, and businesses with their energy needs.
And, demand. Since 2011 there has been an oversupply and a lower demand. Lower demand due to cheap shake gas and the fact that China’s demand has slowed down. Plus in 2011 Peabody purchased Macarther Coal for 5.1 billion betting on China’s need for coal. Peabody tossed the dice and lost on that bet. Does regulation come into play, sure. But it is not the root cause of the problem Peabody faces.
Spelling error due to fat fingers;
“Lower demand due to cheap shale gas and the fact that China’s demand has slowed down.”
Do you ever stop to think that CEO’s take extra risks because they realize their core business is under complete assault by Obama?
And doing nothing means they are dead because of Obama?
I agree their risk failed. Would they have taken that path if Obama had not declared total war on the industry?
That is the question.
Obama is to blame by his war mongering posture.
So what you’re saying is the root cause of Peabody’s failure is Obama. If the 2008 election was different and McCain was in the White House completing his second term, Peabody would still be in the same condition previous to Obama or most likely better.
Pat and Mark:
Doesn’t it just amaze and astound you as to the lengths kev will go to prove he is “right”. What happened to Peabody is basic Econ 101. But facts and common sense have little effect on kev. His teachable moment has passed him bye.
I think we need to go back and blame Richard Nixon for giving us the EPA.
Check out this video;
Great find. And we should blame Goldwater as well, as he voted for both the CWA and CAA as well as the formation of EPA.
Did you note the phrase, “wise use of our natural resources” ?
Wait for it…..
The sound of a head exploding?
Hey Baldy, remember the good old days?
Yup, thanks. I think gas was up to .45/gal where I was living at the time, if you wanted to wait in line. Everybody was closed on Sunday.