Moody's Investor Service's new report on the coal industry shows that the Illinois Basin and Powder River Basin of Montana and Wyoming are maintaining solid production levels despite market pressure and declines in the overall energy sector due to financial instability in China.
The entire energy sector is currently facing a turbulent market, however, Bloomberg reports, "The Illinois Basin stands to be the 'most resilient to current market dynamics,'" and, "will be able to maintain steady production volumes over the next two to three years."
The new Moody's forecast claims that half of the world's coal production is unprofitable. Last month the global price of coal reached $89 a metric ton, hitting a decade low. Bloomberg observes simply that, "coal isn't worth digging out of the ground at current prices."