Saturday, January 19, 2008

Coal in Asia

"Vast coal reserves in Asia are gaining attention as major energy consumers such as China and India grapple with the reality of oil prices around $100 a barrel and the risks they pose to their economies. ... Coal prices would have to rise nearly fivefold to match current oil prices on a unit-of-energy basis, [Jim Brock of Cambridge Energy Research Associates] said, and the difference between the cost of the commodities is 'actually widening'. ... Asia has a third of the world's proven coal reserves, which stood at 909.06 billion metric tons", WSJ, 4 January 2008.

Either oil will fall, or coal will rise in price.

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