The Democratic and Republican conventions might be “green,” but it’s nothing the coal industry and exchange traded funds (ETFs) are afraid of.
Instead, they have brought the coal supporters out in full force in an effort to lesson their carbon footprint and rally back.
The American Coalition For Clean Coal Electricity (ACCCE) is a group of mining and electric utilities that is spending $1.7 million on advertising and lobbying at the Democratic convention in Denver and the Republican convention in St. Paul, Minn.
Jim Snyder for The Hill reports that their mission is getting federal subsidies for “clean coal.” Cutting coal use would hurt the industry, so they’re looking for ways to burn it more cleanly instead.
As of now, coal accounts for 50% of U.S. electrical production (37% globally), so taking the coal factor out of the mix is not a smart idea, and even energy experts know that it is not a serious option with the given economic ramifications. Coal is even found in seven of the electoral states, which means political power on Capitol Hill.
The coal industry thinks that consumers do not have to choose between the environment and sustainable, affordable energy with the right technology.
Meanwhile, coal production in Virginia fell 18% in the last year, reports Rex Bowman for the Richmond Times-Dispatch. Why? Funny thing: nobody really knows. What Virginia coal officials do know is that production has been in a slow decline since 1990. Wyoming is the top coal-producing state, with 453.6 tons in 2007. Virginia produced 25.3 tons last year.
Market Vectors Coal (KOL) has been mining some good returns since its launch on Jan. 15, up 10.2%. The last couple weeks have been strong for the black stuff, as it’s up 10%.