Insight
| |
6 Pages

Proposed royalty rules put long-term PRB coal exports at greater risk


Proposed royalty rules put long-term PRB coal exports at greater risk

Report summary

The US Department of Interior (DOI) has proposed changes to the determination of royalties and coal lease sales as part of a general overhaul of energy valuation rules for coal, oil and gas. We find that the proposed royalty scheme may lower royalty revenues for many years. However, after 2025, when PRB coal is in greater demand, the new royalty scheme will result in much greater royalty revenues and lower producer margins which combination could threaten PRB exports.

What's included?

This report includes 2 file(s)

  • Proposed royalty rules put long-term PRB coal exports at greater risk PDF - 319.38 KB 6 Pages, 1 Tables, 3 Figures
  • PRB new royalty rules.xls XLS - 137.50 KB

Description

This Coal Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

Participants, suppliers and advisors can use it to look at the trends, risks and issues within the coal industry and gain an alternative point of view when making decisions.

Wood Mackenzie is the only coal industry service provider that offers a market outlook integrated with other sector analyses, including macroeconomics, coal supply, steel markets and gas and power markets.

Our coal analysts are based in the markets they analyse. They work with objective, proprietary data to help you maximise your current and future decision making. From market dynamics to trade patterns, we give you confidence in your strategic planning.

  • Summary
  • Background
  • What part of the proposed new rule is relevant to export sales from the PRB?
  • Implications
    • Key elements of existing and proposed royalty schemes
    • Estimated royalty revenue for existing and proposed royalty rules (US$ millions)
  • Competition
  • Uncertainties
  • Conclusions

In this report there are 4 tables or charts, including:

  • Summary
  • Background
  • What part of the proposed new rule is relevant to export sales from the PRB?
  • Implications
    • Proposed royalty rules put long-term PRB coal exports at greater risk: Table 1
    • Proposed royalty rules put long-term PRB coal exports at greater risk: Image 1
  • Competition
    • Competition for sub-bituminous markets in South Korea, 2015, existing royalties incl in mining costs
    • Competition for sub-bituminous markets in China, 2030, existing royalties incl in mining costs
  • Uncertainties
  • Conclusions
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

Questions about this report?

Frequently Asked Questions

Mailenquiries@woodmac.com
  • Europe: +44 131 243 4699
  • Americas: +1 713 470 1900
  • Asia Pacific: +61 2 8224 8898
contact us

Why Wood Mackenzie?

As the trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, we empower clients to make better strategic decisions with objective analysis and advice. Find out more...