Federal Government Approves Another Coal Mine Lease in Wyoming -- The Fourth Approval in The Past Year for Coal Leases in the Powder River Basin

Talk about mixed messages: I thought it was the end of "coal" when this administration took office, but now we have a story of yet another Wyoming coal lease getting federal approval. Coal mine leases are being approved faster than off-shore oil leases.

Data points (some numbers rounded):

• The Bureau of Land Management has approved another estimated 220 million tons of coal to be mined in Wyoming's Powder River Basin
• The lease represents nearly 2,000 acres
• The lease should extend the life of the mine about 1.6 years
• The lease was applied for back in 2005 (under the Bush administration; approved under the Obama administration)
• Without additional coal leases, this particular mine would run out of coal in about 10 years
• Of course, it goes without saying (but I will say it anyway), the approvals are being contested by environmental groups
• This is the fourth approval in the past year for coal leases in the Powder River Basin

It does surprise me.

But then again, I assume the coal is being shipped on Warren Buffett's Burlington Northern Santa Fe railroad. Locomotes are probably built by General Electric. The CEO of GE is the economic czar for the administration.

I forgot another reason. I was reminded of it by a comment that was sent in: coal is needed for coal-powered cars that the present administration wants to be commonplace in the near future. 

Update on Shipping Bakken Oil By Rail

Link here.

Trains have quickly become a huge part in hauling crude from North Dakota's oil patch with producers shipping barrels to more profitable markets not served by pipelines.

Motivated by the possibility of making more than $20 a barrel, North Dakota producers increasingly are sending crude on rail, including to a Louisiana terminal some 1,800 miles away.

"The new paradigm is rail," said Harold Hamm, chief executive of Enid, Okla.-based Continental Resources Inc., one of the oldest and biggest players in the rich Bakken shale and Three Forks formations in western North Dakota.

North Dakota crude typically sells for $10 less per barrel at Cushing, Okla., where benchmark prices are set for West Texas Intermediate crude on the New York Mercantile Exchange.

Some North Dakota producers are now bypassing Cushing, in search of better prices in Louisiana, where the gap between prices for Light Louisiana Sweet and West Texas Intermediate crude has risen to historic levels. North Dakota sweet crude compares in quality to Light Louisiana Sweet and fetches like prices.

For previous posts on shipping Bakken oil by rail, click on the tag "Rail" at the very bottom of the blog.