Follow the Money Back to King Coal

Deep Throat said "Follow the money" and notwithstanding concerns about coal and its effect on global warming, right now the big money is investing in it. According to Forbes Magazine, "Railroads across the country are spending hundreds of millions of dollars buying locomotives, adding track and building cars. Much of the activity is focused on upgrades to the nation's coal transportation network."They're clearly putting their chips on coal remaining the largest source of energy in the United States," said railroad industry consultant Anthony Hatch.

Global warming and the environment are not a factor. "The facts are pretty simple. It is the single cheapest way to generate a kilowatt hour," said Donald Broughton, a railroad analyst with A.G. Edwards & Sons. "Are there regulatory challenges as a result of environmental concerns? Absolutely. But this is still a fairly free market." Added Randy Cousins of BMO Capital Markets: "What you need is assurance of supply, and one thing coal offers is assurance of supply."

So goodbye climate; big coal is back with a vengeance. ::Forbes

Related Content on