Summer heat could lead to major problems as coal, gas link grows

摘要

The news wires were hot with the report last week that Steve Leer, the CEO of Arch Coal, had conceded, during the Reuters Energy Summit, the possibility of power plant shutdowns in the event of an unusually hot summer. Leer stopped short of predicting blackouts, but he didn't mince many words. Inventory "is a concern, and if there is a hot summer and supply disruptions at mines, or with transport, they (coal plants) could run out," Leer said. A U.S. Coal Review source offered a similar assessment. "It comes down to one word, and it's weather," the source said. "It really depends on what's going to happen this summer with the heat." June has developed into a pretty good month on the electricity generation side, managing to "make up for May," which was mild, "and then some," a source said. "This link between coal and gas is going to become even more acute than it has been," a source predicted. Natural gas prices have remained persistently high, and the inventory picture doesn't look as rosy for consumers as it did a few weeks ago.