appalachia

Bob Beck / Wyoming Public Radio

West Virginia wants to use federal dollars to subsidize Appalachian coal. Some think that’s picking favorites — not just over natural gas and renewables, but over other coal states. 

Madelyn Beck

When Alpha Natural Resources went into bankruptcy in 2015, it formed a new company called Contura Energy with some of Alpha’s best coal assets - mines in Wyoming and Appalachia.

Earlier this summer, Contura announced it was going to go public, hoping to expand in the U.S. and beyond. Usually, companies go public and sell shares to raise money and grow their business.  

Now, Contura is backing out of that plan.

The company said it’s because of "capital market conditions."

 

U.S. coal production in 2015 was lower than it has been in nearly 30 years, according to a report released by the Energy Information Administration today. 

EIA data projects that the U.S. produced 10% less coal in 2015 than it did the year before. Analysts attribute this drop to a combination of low natural gas prices, a slowing of international demand, and environmental regulations. Brian Park, an industry economist on the EIA's coal statistics team says Appalachia has been hit hardest by far. Wyoming's Powder River Basin in comparison, has lower operating costs.

Coal companies in the Powder River Basin are hiring, and some of those workers will likely come from Central Appalachia.

Companies there have been laying off miners and shuttering operations in recent years. But in Wyoming, companies like Cloud Peak Energy are hiring.