The Trump administration on Tuesday released a report called “The Appalachian Energy and Petrochemical Renaissance.,” which touted strong optimism in the future of the region’s coal and natural gas sectors. The report seems to ignore concerns on declining demand, global supply glut, and potential environmental regulation that can put a cap in the industries’ growth.
Mark Menezes, the US undersecretary of energy, said that the shale gas revolution and the abundant coal reserves provided the Appalachian region with tremendous opportunities. A Department of Energy official quoted in a Reuters report also said that Appalachia’s abundant natural resources and proximity to markets US East Coast and Midwest markets would continue to support energy projects in the region.
Last year, Trump visited a Royal Dutch Shell plastics project in Pennsylvania and promised to clear the way for other massive investments in the region. Trump has been slashing environmental regulations to pursue higher fossil fuel production. However, his policy would likely be reversed if Democratic candidate Joe Biden wins the election in November.
Besides, the government-promoted project to develop a petrochemical hub in Appalachia has been rocky. In June, Thailand’s PTT and South Korean partner Daelim deferred an investment decision on a $5.7 billion petrochemical plant in Ohio. Some academics and former policymakers also warned the region’s authorities that a boom in petrochemical jobs might not sustain due to an oversupply of plastics plants.
Meanwhile, US coal demand dropped 15% in 2019 to the lowest level since 1964. Coal deliveries to US power plants fell to more than 13-year low of 30.02 million short tons in April, the US Energy Information Administration said.
