{"id":24330,"date":"2011-10-06T14:00:41","date_gmt":"2011-10-06T18:00:41","guid":{"rendered":"http:\/\/countingpips.com\/fx\/2011\/10\/06\/coal-outlook-promising-for-investors\/"},"modified":"2011-10-06T14:00:41","modified_gmt":"2011-10-06T18:00:41","slug":"coal-outlook-promising-for-investors","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/10\/06\/coal-outlook-promising-for-investors\/","title":{"rendered":"Coal Outlook Promising for Investors"},"content":{"rendered":"

Coal Outlook Promising for Investors<\/a><\/p>\n

by David Fessler<\/a>, Investment U<\/em> Senior Analyst
\nThursday, October 6, 2011<\/p>\n

Earlier, I talked about the 25-year outlook for liquid fuels<\/a> based on the Energy Information Administration\u2019s (EIA) International Energy Outlook 2011<\/em>. It\u2019s the EIA\u2019s annual 25-year energy forecast, and it contains important information for investors who are considering an investment in the energy sector.<\/p>\n

Now, I\u2019ll cover the future of coal in the world energy picture.<\/p>\n

Many countries lack energy policies (including the United States) that restrict or otherwise limit the use of coal. As a result, the use of coal is projected to rise from about 139 quadrillion Btu in 2008 to 209 quadrillion Btu in 2035. That\u2019s an average annual increase of 1.5 percent.<\/p>\n

Although coal power generations should decline in the United States<\/a>, dramatic increases are set to occur in non-OECD Asian countries, primarily India and China. China will double its coal-fired power generation capacity between now and 2035.<\/p>\n

\"World<\/p>\n

Coal use in China\u2019s industrial sector will be up by 67 percent over the same time period.<\/p>\n

India\u2019s power generation will rise 72 percent between 2008 and 2035, as its industrial sector use will increase by 94 percent!<\/p>\n

Types of Coal Used for Power Generation
\n<\/strong><\/p>\n

Coal is generally classified into two types \u2013 soft coal and hard coal. Soft or low-rank coal is either lignite or sub-bituminous. It represents about 47 percent of mined coal. Both are used for power generation, and some sub-bituminous is also used to manufacture cement.<\/p>\n

Hard coal is either bituminous or anthracite. Today, anthracite represents only about one percent of all coal mined, with bituminous making up the rest.<\/p>\n

Bituminous is further divided up into coking coal \u2013 also called metallurgic coal \u2013 and steam or thermal coal<\/a> which is used in power generation and other industrial processes.<\/p>\n

While power-generating coal production is likely to slightly increase, the largest gains should be in the industrial sector with metallurgical coal.<\/p>\n

Two Coal Mining Companies To Watch<\/strong><\/p>\n

Two great coal miners that will benefit are:<\/p>\n