Coal was used to generate 30.3% of the world’s primary energy in 2011, the highest level since 1969. The so-called dirty energy is still in high use from China and India where demand is estimated to expand 4% a year through 2020. Nevertheless, global thermal coal producer stocks have declined over the past two years due to diminished demand and fears of oversupply.
“There’s a pretty plausible case that this is the beginning of the end,” Craig Mackenzie, investment director and head of sustainability at Scottish Widows Investment Partnership, said in the article.
The Market Vectors Coal ETF (NYSEArca: KOL) is down 20.6% year-to-date.
For more information on the coal industry, visit our coal category.