How China’s Coal Dilemma Points to One Inescapable Conclusion

by | published January 19th, 2018

Thanks to Mother Nature and administrative decision-making, China’s drive to reduce the use of coal has hit a roadblock.

You see, China entered 2017 aggressively trying to reduce coal capacity. The state-run Xinhua News even said last November that China was on track to cut its total number of mines to 7,000 by 2018.

But despite having a wealth of different energy sources – from (undeveloped) natural gas and oil to renewable sources like wind and solar – China remains dependent upon coal for most of its power generation and heat. To keep up with expanding demand from an expanding population, China on average is bringing a new coal-fired energy plant on line every week.

Compounding the situation, this week, Beijing announced a reduction in overall production from some of the larger national coal mines.

China’s move to wean itself off of its dependence on coal is important.

It’s a testament to the country’s commitment to fixing its deteriorating environmental conditions.

Sadly, it turns out that the drive is easier to announce than to pursue…

The One Thing Keeping Solar and Wind from Taking Over

by | published January 16th, 2018

Whether you like it or not, the move toward renewable power is a certainty in the energy sector.

But as we’ve discussed here in Oil & Energy Investor before, there are significant impediments to a continued and robust adoption of renewable energy.

The primary roadblock is cost – but not in the way you might think…

The expenses involved in generating solar and wind power have actually declined significantly over the past several years.

Additionally, these days we’re talking more about “grid parity” – when renewables match the cost of generating and putting electricity on the wider grid.

In many parts of the U.S., solar and wind have improved to a point where they cost about the same as more traditional sources of power.