Murray Energy Corp. is warning that it may soon have to engage in one of the biggest layoffs that has ever occurred in the energy sector. Murray Energy is the largest privately owned coal mine company in the United States, they may not be after they are forced to lay off 80% of their staff.
The company sent out a notice this week that was highly critical of Obama:
“Layoffs ‘due to the ongoing destruction of the United States coal industry by President Barack Obama, and his supporters, and the increased utilization of natural gas to generate electricity'” – Company Statement
The owner, Robert Murray, is a fierce opponent of Obama. Regulations undoubtedly play a role in the decline of the coal industry, however there are other significant contributing factors. The cheap cost of Natural gas has many power plants turning to it to power their plants rather than coal. The value of coal has dropped from $80 a ton to $40 a ton in the past 5 years.
Almost all major US coal mines have filed for bankruptcy in the past 2 years including Peabody Energy, Arch Coal, and Alpha Natural Resources. With the cheap cost of Natural Gas and the ridiculous amount of environmental regulations, it has become next to impossible to profit from running a coal mine in America.