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National Coal Expert: "Mining is a Loser" in Practically Every Way

Mike Casey
April 28, 2011  |  15 Comments

Originally posted at The Great Energy Challenge blog

Anytime coal’s cost to America is discussed, the coal industry reflexively talks about what an economic lifeline it is for the states in which it operates. Headwaters Economics, a Bozeman-based think tank focusing on natural resource issues, has a solid new study that’s getting national attention for undercutting those claims. For instance, the Headwaters study finds that “[f]ossil fuel production has not insulated energy-producing states from fiscal crisis,” that “[f]ossil fuel extraction has a limited influence at the state level on economic indicators such as GDP by state, personal income, and employment,” and that “[t]he volatility of fossil fuel markets poses obstacles to the stability and long-term security of economic growth in energy-producing regions.”

This is a problem for the coal industry, which spends heavily to construct a fantasy world in which it’s a “clean” industry to which we should feel grateful, a vital supplier of our power, and an economic lifeline to host communities.

But in the real world, coal’s case is even weaker than the Headwaters study shows. The work of Professor Michael Hendryx of West Virginia University goes even further. His work has looked at the costs of coal mining to the Appalachian communities that host it.

In light of the House of Representatives’ aggressive efforts to eliminate already-loose controls over the coal industry’s egregious practices – blowing the tops off mountains and violating the Clean Water Act – we interviewed Hendryx and found his views especially timely and powerful. The highlights:

  1. Coal “mining is a loser economically, environmentally, and in terms of public health.” Hendryx has found that the heaviest coal-mining regions of Appalachia are worse off in just about every way compared to neighboring regions, similar in every other way except that they are below median in terms of coal production. The above-median coal-mining communities of Appalachia are also far worse off compared to the rest of the country. In making his calculations, Hendryx looked at a range of indicators, including health, education, poverty, environmental conditions, unemployment, and mortality rates. All told, Hendryx’s found that mountaintop removal mining’s economic cost to Appalachian communities totaled roughly $42 billion per year in lost health and lives.
  2. The coal industry rhetoric that mining is important for jobs is simply not true. In fact, Hendryx’s research has found that Appalachian counties with the heaviest concentration of coal mining have the worst unemployment and the worst economic conditions in the region. According to Hendryx, the coal industry mantra that mining creates “jobs, jobs, jobs,” is a total myth – as is the false dichotomy between jobs and the environment that coal apologists suggest. As Hendryx bluntly puts it, “There still is a very strong presumption in the state that mining is important to jobs. I just shake my head that we still don’t understand that it’s not.”
  3. Despite industry propaganda to the contrary, coal is neither cheap NOR abundant. In fact, “They are lying.” According to a recent Harvard study – one on which Professor Hendryx was a co-author – the full “lifecycle cost” of coal to the U.S. public is actually upwards of $500 billion a year. As for the “abundant” argument, Hendryx concludes that the industry is simply “lying” when it claims we have 200 years of coal left. To the contrary, Hendryx points out, US Geological Service and other analyses indicate that coal production is likely to peak in as few as 10 years, and might have already have peaked in Appalachia.
  4. The concept that coal can be “clean” is “beyond absurd.” The idea that coal can be “clean,” whether on the combustion side or on the production side, and that we should invest billions of dollars in trying to achieve it is utterly ridiculous and a complete waste of money. According to Hendryx, “We need to get serious, stop wasting billions of dollars a year on the beyond absurd concept of clean coal.”

Michael Hendryx is a national expert on coal’s real-world impacts. Unlike the front group operatives that the coal industry underwrites to move its claims in the court of public opinion, it’s reasonable to assume that Professor Hendryx doesn’t make any more money if his research finds that coal’s arguments bear out in the real world – or not. That means his conclusions are worth repeating: that coal’s “clean” claims are absurd; that coal spokespeople claiming its an abundant fuel supply are “simply lying;” and that the technology is an economic “loser.”

Coal-funded front group people give two variations on a standard line: 1) that government shouldn’t “favor one energy sector over another;” and 2) that government “shouldn’t pick winners and losers.” All of that sounds nice. However, given how much welfare politicians have been showering on the coal industry for nearly a century, it’s clear that government has been favoring some forms of energy for a long time now. And it’s increasingly clear that government has been favoring a loser.

 

The information and views expressed in this blog post are solely those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on this Web site and other publications. This blog was posted directly by the author and was not reviewed for accuracy, spelling or grammar.

15 Comments

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ANONYMOUS
May 19, 2011
Clean coal-the stuff oozing out of my daughters diaper is cleaner than the cleanest coal. At least the dodo will not kill you. So who was the genious who decided to tell as big fat lie and reward himself with the accolades from a dying industry. Coal is so 16th century. It is about time that we took apart and dismantled the sole source of nearly everything bad on planet earth. Fosil fuels are killing planet earth. We are now in a coma and time is running out. Ironically our own greed is going to kill us. For a society that claims to be modern-we are painfully primitive when it comes to issues like the burning of fossil fuels. It is very sad to think of all those who have died and the many hundreds of thousands who will fall victim to black death. Screw the CEO of these big oil and coal companies. They make me sick and I am fed up with the liars.
Roy West
Roy West
May 19, 2011
Wrong again John Harlan. Here is where you and the coal industry have a leg up. First of all the legacy wonks under former secretary of energy Samual Bodman. The DOE is so closely alingned with the coal companies that it will take 200 years to replace black death. We have the technologies today that can completly erase black death from the market place. Their ace in the hole is the licencing process. 10-15 years of endless studies and red tape. It is a freaking joke. The rest of thw world moves forward and our greedy scum bag sold out stuffed shirt lackey politicians give big oil and coal everything they want and burn the folks who are trying to make a difference. On a side note, there are people in Texas who are now complaining their water is contaminated. These same people were the ones who voted to allow big oil and coal to pump into the ground more than 600 million gallons of toxic sludge to recover gas. No, they did not use these huge wells as dump sites. That would be illegal. Then the stupid morons in the legislature passed a law that said toxic cancer killing agents were not harful to human and are not required to tell the people what they are pumping into their ground water. Ha, the highest rate of cancer in any state. You are more likly to die of cancer in Texas than in Chernobly or Fukishima Japan. You tell me that money does not drive policy. Sick lies one right after another. It would be a 1000 times cheaper to use rneeable energy. No more illegal wars to steal another countries oil or the staggering loss of life due to collateral damage would end. You are dead wrong John Jarlan and what you are supporting is tatamount to helping stone cold killers. Think of the thousands of people who dire every year and look them in the eyes and tell them you John want to continue the slaughter of innocents.
RMichael Curran
RMichael Curran
May 1, 2011
Good blog post but the responses were even more fun to read. Makes you wonder if someone is outsourcing them to a third world country with all the spelling errors and such. Although I generally agree with their (anti-coal) sentiment, it's hard to take them seriously when there are so many typos.
john harlan
john harlan
April 30, 2011
Let's talk sense here. This is another trite hit piece on coal. We all read this blog because we are interested in alternative sources of energy, but, coal is a necessity. We have no alternative for the next decade or more. Way too much of our economy runs on coal and no alternatives are ready to take it's place. If the environmentalists were to get coal mining stopped, it would result in the complete destruction of the U S economy (and I think that has to be one of their goals). Did they plug the cost of that into their little equation? I didn't think so. Doesn't anyone ever have an original thought?
Roy West
Roy West
April 30, 2011
Very interesting Anonymous regarding the link.
ANONYMOUS
April 30, 2011
That is hilarious John Harlan. The hippie generation. I must assume you are a little older than these hippies as you call them. Well for one your generations has done more to destroy this planet than any other epoch in human history. You insatiable greed and complexity of your deceit and lies knows no bounds. A generation who professes to be Godly but only when it suits them and loves to be control freeks as long as they are winning the game. You generation has ushered in an era of Viking capitalism as you think God has sactified you as his personal agents on earth. I have got some bad news for you. The only place you are going to be spending your golden years for an eternity is in he lll. Sad but true.You raised miscreats to be just like you and true to form they will dumb your wretched self off at the cheapest old people home they can find. They will never come and visit because they can barel stand the site of you. You will lay there in that fecal infested matress watining to die. Still convinced that you somehow control the fate of man and ard on the good side of God. No, you are not and you controlling nature will not allow you to believe you have lived your entire life as a lie. As youself one question John..Did God create planet earth to have men like you come down here and destroy it. No think long and hard before you answr that question as you will be accounting for it when you stand in judgement. Yes, John the only thing you should being right now is falling to your knees and praying and begging forgiveness from God. There is no oupside to what you have done in your life. You are pathtic wretch who never grew up. You will have no one to blame but yourself for the suffering you will endure in hell for eternity. I am not here to jusdge men like you. that is the realm of God. I can point out that you will suffer immensily for eternity. Stop and think what eternity is for just a brief moment. I will say a prayer for you. Nothing can help you now.
Roy West
Roy West
April 30, 2011
Thanks John, that was a great response. I like to look at these things with an eye towards the economics and when one takes out the emotional background noise one can usually assess an issue and see weather it makes sense. Along those same lines if we were to look closely at the oil industry one can clearly see these dynamics are at work here as well. We send a couple of geologist out to scope out the land in Saudia Arabia. He decides this looks like a good spot and has the oil rig brought in for a discovery well. Low and behold it was a pocket of gas. About the 5th try they hit pay dirt. Now, we have to draw the crude from the ground which takes energy. I understand that the crude weighs about the same as a gallon of milk maybe a little more. So we draw the crude up from a depth of 4-5 thousand feet and sometimes longer. We waste an enormous amount of energy just getting the oil out of the ground. The second thing is we have to either put it into a pipe and ship it to a waiting tanker or truck it their to a sea side port. Now, the long journey across the oceans to a port in either houston or Los Angeles. There the crude is off loaded and sent to the refiner where it is refined and then sent by tanker truck to a retail station and then it is pumped into our cars. The best part about the whole deal is that the fuel efficiency is about 25 percent which means with 10 gallons of gas only about 25 percent is really doing any good the balance of the heavy fuel is simply driven around as dead weight waiting to be instantly vaporized. That is sick. That is Stupid of the hightest order. It makes no sense.
Lee Calhoun
Lee Calhoun
April 29, 2011
John & Anonymous,
That 70% waste heat is a conservative figure. All the electricity that is generated with steam whether you burn coal, gas, oil, wood, uranium or sunshine is produced by the Carnot cycle. I still remember sitting in Thermodynamics class in the fall of 1970 and learning about the Carnot cycle with a maximum theoretical efficiency of about 62%. BUT and it is a huge but, real world boilers, pumps, turbines etc. all have losses that also have to be accounted for in the process of generating our electrons at the power station. Then you throw in line, ionization and transforming losses from transmitting the electricity hundreds to thousands of miles and the initial efficiency ratchets down again by that percentage. Now the electrons are at your home or factory and are further discounted with losses due to motors, power supplies etc as we get some small benefit out of the original coal. I have seen estimates as high as 92% total loss. It is safe to say that losses are in the 70 to 80% range with centralized steam generation of electricity. That is why the single most intelligent thing to do is to not waste electricity because of the huge leverage in waste to benefit.

By the way we could easily cut our electric consumption in this country by roughly 40% (simply the ratio of America's to Japan's consumption per capita) without any loss of jobs or productivity and without any need for new technology. In fact the economy would be more efficient with better bottom lines for both industry and households and a better environment and healthier population. A win, win, win situation.
john harlan
john harlan
April 29, 2011
Statistics are used to support preconceived opinions. Any side of any issue can be supported with cleverly administered statistics. Now academia is run by the 60s hippies, (who incidentally gave us this drug problem that is killing our society)who turn out young people in to the world with an anti business bias. They generally end up in government jobs or academia themselves. Most of these people have never had an original thought. Just think about it. It just can't pass the bullshit test, Roywest.
ANONYMOUS
April 29, 2011
I wonder if that is true that nearly 70 percent of coal simply goes out of the smoke stack? That sounds about the same ratio that my car has when burning gas. The rest I am told goes out the tail pipe. If this is true there really is no reason to be burning coal. None!
Roy West
Roy West
April 29, 2011
Pollution is the second largest killer behind cancer and if you stopped to think about it would be number one simply because the cancer is most likely created as a direct result of these mindless thugs pumping it into the air and water. A startling fact is that when a hundred rail cars loaded with coal pulls in unloads the total amount of coal that acutally produces useful power is about 30 percent. That mean 70 rail cars of coal goes out the smoke stake and simply generates waste heat. Politcians are caught in the dumb state of mind that these things could not possibly be happening. It is just those pesky liberals who want clean drinking water and kids that grow up without spending 2 to 3 days a week in the ER getting treated for asthma brought on by the coal industry pumping billions of tons of toxic sludge into the water. Oh, did you really think that the coal dust acutally turned into pixi dust and just disappeared? No, that is not the case. The whole of the Apalatia is nothing more than a toxic cessepool of a variety of killing agents that thrteaten to wipe out the population. Great going coal industry.
Roy West
Roy West
April 29, 2011
Yes, the coal industry is nothing more than a bunch of lying thieving thugs in suits. The coal industry has had more than a century to clean up their act and now they want us the tax payers to pay for somthing they should have done 70-80 years ago.Those same politicians will undoubtedly give them billions so we do not lose the millions and millions of dollars put back into the local economy. Any body can clearly see in the Appalatioan Moutains the tar paper shack these poor fools are living in is a step up from a tent.Tell me one last thing, how is possible that after making more than two trillion dollars the coal industry needs the tax payers to pay for them to clean up their pollution. There has to be some crooked lying thieving turn coat politician who signed off on this deal. I can not image a decent honest man telling the coal industry that they should destroy the envioenment and rape rob and pillage my constituants and then set there and try and defend these worthless lying baby killing thugs.
Roy West
Roy West
April 29, 2011
Now now lets not be hasty, we have a right to be heard as well. We bribed ooops I mean supported mentally challenged candidates to represent us so we could continue to destroy virgin forrests, kill babies while choking on coal dust and smoke. We paid good money to screw the people over in these states and we want to do what ever we want. Hey, who cares of people die a little early? They were going to die anyway so who cares. Enviornment-heck no body cares about the environment. We are your friends and all of the money that we make off of you we put back 2-3% percent back into the local economy. I dont get it we shower the people with gifts. We bought a new cancer center in to treat poor helpless minors suffering from black lung disease. It is not our fault, they should not be breathing so hard. Can anyone tell me when I have to T off, I do not want to be late? Ok, so we lied about the money we put back into the cities. The politicians wanted to much hush money so we sent it off shore and made these patriotic compnaies foreign companies so uncle sam could not get any money from us-Did I say we built a cancer ward?
ANONYMOUS
April 29, 2011
It all works out if you simply assume that the value of a statistical life (VSL) in a coal mining area is well below the national average. With a degraded environment, low standard of living and high unemployment, that may be true.

The government "shouldn't pick winners and losers" as they're obviously bad at it. Obama wants to cut spending on advanced hydroelectric technology from $0.049B to $0.039B, put another $0.1B into solar technology while spending $3.2B on clean coal technology.
john harlan
john harlan
April 29, 2011
What a bunch of crap!

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Mike Casey

Mike Casey

Mike Casey is the President and founder of Tigercomm, a leading U.S. cleantech PR firm with offices in Arlington, VA and San Francisco, CA. He uses his 28 years of experience in communications to counsel cleantech executives and investors....
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