On June 25, 2013, President Obama outlined his climate change plan, it will not only increase clean energy supplies, reduce gases causing global warming, and increase energy efficiency but it will also call for the reduction of carbon emissions from all existing coal plants. What does this mean for these companies and coal investors? According to USA Today, during the past five months shares for Peabody Energy and Walter Energy have plummeted 49% and 79% respectively. These numbers are staggering considering that Peabody Energy hit a 52-week high in mid November of last year. The regulations and actions proposed by the President have and will continue to severely affect the profits of these coal companies and their investors. Whether the country likes it or not the process of phasing out coal is in full motion. President Obama's plan is not the first hit to the coal industry. According to the Green Energy Collective, over the past 5 years coal use has decreased by 12%, this is partly due to the decreased price of natural gas as well as the significant increase in availability of solar and wind power. Since 2007, solar and wind energy has increased by 300% and 600% respectively.
Opponents argue that these regulations will not only affect the coal companies, but the consumers and our economy as well. Coal is a major part of all of our lives and the economy; however this country needs to be pushed in the direction of renewable energy, this just might be the push that this country drastically needs. Renewable sources like wind, solar, and even nuclear energy can fill in the gaps left by the coal industry if given the time and resources to grow and reach their full potentials. This road will not be easy but we all must realize that our country and the world will be be much better off if we stop relying on non-renewable energy sources now and not 50 years into the future.
--NP
