U.S. coal stocks fall; exit from climate deal may hurt, not help

[GennGreymane]

https://www.reuters.com/article/us-u...-idUSKBN18R2BO

U.S. coal company shares dipped alongside renewable energy stocks on Wednesday after reports that President Donald Trump plans to pull the United States from a global accord on fighting climate change.

The market reaction reflects concerns, raised by some coal companies in recent months, that a U.S. exit from the Paris Climate Agreement could unleash a global backlash against coal interests outside the United States.

Peabody Energy, the largest publicly traded U.S. coal company dropped 2.2 percent to $24.29 a share, while Arch Coal fell 0.4 percent to $70.77.

A spokesman for Peabody said the company would support a decision by Trump to withdraw from the Paris deal because the "accord is flawed on a number of levels."

Peabody, however, was among a handful of big coal companies that had argued that Trump should stay in the deal to help protect coal industry interests overseas, including by ensuring funding for coal-fired power plants and so-called "clean coal" technology.

Cloud Peak Energy Inc had also urged the Trump administration to stay in the Paris deal to prevent other nations from an aggressive turn against the global coal industry. Its shares were down 0.6 percent to $3.39.

A spokesman for Cloud Peak declined to comment.

A source briefed on the matter told Reuters that Trump is planning to follow through on his campaign pledge to pull the United States out of the Paris accord, a move designed to help boost domestic energy production and speed economic growth, after weeks of deliberations on the issue.

Trump did not confirm the decision, but said he would make an announcement "over the coming days".

CAMPAIGN PLEDGE

A U.S. withdrawal would come over the objections of scores of big U.S. corporations - from Wal-Mart to Exxon Mobil - worried the move will complicate the business landscape instead of bolstering the economy.

"For us, our position on the Paris agreement... we need a framework like that to address the risks of climate change," Exxon Mobil Chief Executive Officer Darren Woods told reporters on the sidelines of the company's annual general meeting on Wednesday. Exxon had made that case in a recent letter to the White House, he said.

Exxon dipped 0.7 percent, ConocoPhillips declined 0.2 percent, and Chevron Corp fell 0.6 percent. Crude oil prices fell to a three-week low on news that recovering Libyan output boosted OPEC crude output in May.

Solar energy shares also got hit on Wednesday, with First Solar Inc down 2.5 percent, and SunPower Corp each down 3.4 percent.

"Regardless of what the President decides on the accord, we expect America’s solar industry to continue to thrive and create jobs, boost the economy and reduce greenhouse gas emissions," the Solar Energy Industries Association said in a statement.

Shares of Tesla Inc, which recently acquired SolarCity, were up 1.8 percent at $341.01.

Tesla CEO Elon Musk said in a Twitter post on Wednesday that he had done "all I can" to convince Trump to stay in the Paris accord, and threatened to leave White House advisory councils if Trump announces a U.S. exit.

Trump campaigned on a promise to unravel Obama-era climate regulations to help boost domestic oil, gas and coal production. Company executives, economists, and analysts have expressed skepticism, however, that his deregulatory agenda can alter existing trends away from coal.

U.S. carbon emissions have declined to near 30-year lows, a trend driven by increased natural gas use replacing coal.

The VanEck Vectors Coal exchange-traded fund fell 1.2 percent to $12.71, not far from a five-month low hit earlier in May. The ETF is on track to fall 7.2 percent this month after rising in the first three months of the year as part of the so-called Trump trade.

(Reporting by Rodrigo Campos, additional reporting by Nichola Groom and Richard Valdmanis; Editing by Nick Zieminski and David Gregorio)

Investment savvy people. Buy?

[cubby]

I cannot believe it's just Nicaragua, Syria, and now the United States that isn't signing the Paris Accord.

Every day I think Trump can't embarrass this country any more, and every day I'm wrong - he continues to pile on the deplorable behavior.

[D Luniz]

well, at the least, America would be 1st in a group of us, Nicaragua and Syria

[Garnier Fructis]

U.S. coal company shares dipped alongside renewable energy stocks on Wednesday after reports that President Donald Trump plans to pull the United States from a global accord on fighting climate change.

Trump even fails at failing.

[Deathquoi]

This is hilarious. Even when he actually achieves something he wanted to do, it blows up in his face.

[callipygoustp]

Hmmm, might be time to short some coal company stocks.

[Mafic]

Coal is done for.

Good time to buy green energy low. Automation is going to make green energy even more appealing.

[Garnier Fructis]

This is hilarious. Even when he actually achieves something he wanted to do, it blows up in his face.

It's par for the course. His actions routinely end up just screwing everybody. He's created an art out of being bad at governance.

[Krigaren]

I cannot believe it's just Nicaragua, Syria, and now the United States that isn't signing the Paris Accord.

Every day I think Trump can't embarrass this country any more, and every day I'm wrong - he continues to pile on the deplorable behavior.

Nothing says #MAGA like allowing the Chinese to overtake the US and become the world leader at something.

[Dug]

No matter what coal is going to die and that's thanks to market forces going to natural gas. Even the coal country trump supporters know this. I've heard so many interviews with coal miners who know this to be the case but... Trump said he'd do something. And they admit that they know he can't do anything... but he said it at least. Can't understand that.

[Rakoth]

No matter what coal is going to die and that's thanks to market forces going to natural gas. Even the coal country trump supporters know this. I've heard so many interviews with coal miners who know this to be the case but... Trump said he'd do something. And they admit that they know he can't do anything... but he said it at least. Can't understand that.

Deperation. They are being ignored by everyone, they are suffering, they see no future. He was the only person who gave them even a chance, even if that chance was a snowball's chance in hell. I think Trump is the worst president, but he is the worst because he played with people's futures. Instead of telling these people, look, there is nothing we can, except maybe take care of you, he promised the impossible.

[cubby]

No matter what coal is going to die and that's thanks to market forces going to natural gas. Even the coal country trump supporters know this. I've heard so many interviews with coal miners who know this to be the case but... Trump said he'd do something. And they admit that they know he can't do anything... but he said it at least. Can't understand that.

The irony is Hillary had a real plan for doing something about it (don't focus on her, focus on Trump's lies). But they just wanted to hear what they wanted to hear, ignoring reality and facts like so many other swindled Trump followers.

[Dug]

Deperation. They are being ignored by everyone, they are suffering, they see no future. He was the only person who gave them even a chance, even if that chance was a snowball's chance in hell. I think Trump is the worst president, but he is the worst because he played with people's futures. Instead of telling these people, look, there is nothing we can, except maybe take care of you, he promised the impossible.

Personally I'd rather know the truth and look for alternatives than hold onto a sliver of hope but I can understand how its difficult when your entire family and multiple generations have built their lifes around a certain thing.

[A dot Ham]

https://www.reuters.com/article/us-u...-idUSKBN18R2BO



Investment savvy people. Buy?

Probably not.

IF any gains are to be made they will be in the short term (next 4 years).

(1) I don't see Trump as president longer than 1 term
(2) Renewable energy is the future

Trump's action are actually dictated by popular opinion.

Yes it is socially popular to be "green" but analysis of sales and the market shows that when gas prices are low, people (Americans) buy less hybrids. If gas prices could/would remain low, people will favor gas guzzling trucks and V8s over hybrids and economic small engine vehicles.

It is an unfortunate fact. One that the car companies continue to use for not diving head first into more fuel economic (which typically equates to less emissions) vehicle production.

It is an interesting dichotomy to say the least.

[kail]

https://www.reuters.com/article/us-u...-idUSKBN18R2BO



Investment savvy people. Buy?

Risky for short term grabs. Pointless for longterm growth.

[Cosmic Janitor]

well, at the least, America would be 1st in a group of us, Nicaragua and Syria

I still would propse the abbreviation SNU-countries. SUN would seem more favorable obviously, but let's be real here, it doesn't exactly fit, does it? .

- - - Updated - - -

US economy is bound to utterly crash this year anyhow.

It's a big bubble that is about to pop.

Buying right now is like throwing your money away.

Well you should get things with real value then, because sitting on it is not going to help either.

[Deleted]

Everyone is moving from coal, so it's expected to crush and burn. Trump was played by the few that still gains something from coal.

[Deleted]

The reason I didn't originally mind the idea of Trump being president is that I hoped he would encourage positive change in this roundabout way. Indeed what the coal companies probably would have wanted is to loosely stick to the accord without making any more major efforts towards it's goals.

[Super Friendly Kitty Cat]

Are green energy liberals worried now that shares of coal are dropping?

Anything to bash Trump!

[Halicia]

Are green energy liberals worried now that shares of coal are dropping?

Anything to bash Trump!

well, natural gas is getting hit hard by this too... its a bad move for Energy in general.