It's too much, too soon in Illinois Basin; region could be in turmoil over next year: Wood Mackenzie

摘要

The highly regarded coal industry analysts at Wood Mackenzie figure Illinois Basin producers are expanding production by too much, which will lead to a region in turmoil over the next year. Since 2000, Illinois Basin coal has experienced three price spikes due to stockpile shortages caused by higher demand and the inability of Central Appalachian producers to fill this demand. The basin is coming off its third price spike, due to the global recession, a mild summer and low natural gas prices displacing coal at power plants.