The coal industry is undergoing a revitalization process with production and prices increasing, thanks in large part to the coal-friendly policies passed by President Donald Trump since he entered the Oval Office in January.
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Third-quarter earnings for Missouri-based Arch Coal (OTC:ACIIQ) revealed $68.4 million in profits and an 11.5% increase in revenue, FOX Business’ Jeff Flock told Stuart Varney during “Varney & Co.” In January 2016, Arch Coal, the second-largest producer of coal in the United States, declared bankruptcy.
“Part of the reason is the Trump effect,” Flock reported Tuesday. “He certainly has ended the war on coal and with the repeal of the Clean Power Plan, that’s had a real positive impact.”
Scott Pruitt, administrator of the Environmental Protection Agency, announced in early October that the Trump administration would roll back the Obama-era Clean Power Plan, a regulatory proposal that would have curbed carbon emissions from coal-fired power plants by having states meet certain targets. In 2016, the Supreme Court prevented the Clean Power Plan from taking effect.
Supporters lauded it as a critical lynchpin in curbing global warming, but critics warned it could kill thousands of jobs and further hinder an already-struggling coal industry.
Now, production of coal is up 7.8%, and while consumption is just about flat, it’s significantly higher than last year, which was down 35%, Flock said.
“So all good news,” he said. “The war is over.”