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Will Dirty Coal Make You Filthy Rich?

Written by Keith Kohl
Posted July 1, 2022

With the wild ruckus raging over Supreme Court decisions lately, you’d think that all its surprise rulings were over and done with. 

But it turns out it wasn't finished infuriating the left side of the aisle. 

So what happened?

Yesterday, the highest court in the U.S. ruled that the Environmental Protection Agency (EPA) doesn’t have the authority to set standards on climate-changing greenhouse gas emissions for existing power plants. 

Immediately, a chorus of cheers went up for the coal industry

Judging by the reaction so far, it feels as if investors were preparing for a tidal wave of coal profits to wash over their portfolios going forward. 

And with the EPA effectively handcuffed, perhaps you’re wondering if it isn’t time you put some skin in the game. 

Unfortunately, I have some bad news for you.

Dirty Coal HAS Made Investors Filthy Rich

Look, it’s difficult to find a sector that has been beaten down more than coal during the last decade. And I know I take an immense amount of pride in the energy profits we’ve gleaned over the last two years specifically the best and brightest drillers in the oil industry

After all, we watched shares of Diamondback Energy surge 370% higher since the COVID lockdowns began. 

I don’t care if it was your first trade or if your last name is Buffett that’s a monumental gain for any portfolio. 

However, few investors have realized that, despite the anti-coal fervor that has gripped Europe and the United States, some coal stocks have been on a monster run during the COVID pandemic.

And make no mistake, some of the best coal stocks out there have radically outperformed their counterparts in the energy sector.

Don’t believe me?

Take a look for yourself:

nrpstock

Had anyone had the foresight to pop some of their cash into Natural Resource Partners since the pandemic started in March 2020, they could have seen gains of as much as 565%. 

Of course, your excitement would peak again the moment you saw yesterday’s SCOTUS ruling that narrowed the EPA’s authority over emissions on existing plants. 

You might even be tempted to dive right back in headfirst. 

Then again, that would be one colossal mistake.

Here’s why…

 

It’s a TRAP! 

One of the most bearish charts I’ve ever come across speaks volumes for coal’s future.

Yes, I’m fully aware that U.S. coal exports are up 23% between 2020 and 2021. 

However, most of the investment herd has missed the fact that we’re using far, far less coal than ever before. Not only are we no longer building any new coal plants, but the ones we do have operating are ancient compared with the rest of our power plants. 

One glance below, and you’ll see why we expect a bleak future ahead for the coal industry:

eiacoal

In fact, the average age of U.S. coal power plants today is 41 years. 

That’s one of the reasons why the situation will become even more dire going forward. This year, the U.S. is retiring approximately 14.9 gigawatts of electric-generating capacity. 

Right now, fully 85% of that soon-to-be retired electric capacity comes from coal-fired plants!

Think it can get worse? 

Indeed it can 23 gigawatts of coal capacity is expected to be shuttered in 2028 alone!

I’ve told you before that nothing will be able to pull the coal industry out of its death spiral.

But that doesn’t mean the news is all bad.

Next week, I’m going to show you exactly why the death of coal is opening up an incredible window of opportunity in another sector. 

Stay tuned.

Until next time,

Keith Kohl Signature

Keith Kohl

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A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing's Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.

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