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Months of upheaval has left analysts asking, "what's next" for Wyoming's coal industry
Months of upheaval has left analysts asking, "what’s next" for Wyoming’s coal industry
Camille Erickson 307-266-0592, camille.erickson@trib.com Aug 25, 2019 Updated Aug 26, 2019 | 10 min to read
Highway 59 slices through the rolling prairie of northern Wyoming, a thin line of gray amid a sea of golden grasses and brown scrub. ... On a day in early May, a driver heading north on the two-lane road would first pass through Wright, an 1,800-person coal town that dissolves into the surrounding hills. Just beyond the city limits sit the nation’s two largest coal mines: Black Thunder and North Antelope Rochelle. Together, they produce more coal that the combined output of the county’s next 13 largest mines.
Twenty miles to the north, the driver would pass the turnoff for Cordero Rojo, the fifth-largest coal mine in the U.S. Wyoming-based Cloud Peak Energy, the mine’s owner, would still be solvent, having avoided the wave of bankruptcies that had crashed down upon many of its competitors. ... Next would come Belle Ayr, the nation’s sixth-largest coal mine, owned by a relative newcomer to Wyoming, Blackjewel. Beyond that, the driver would see more mines dotting the area, splotches of gray and black peeking out beyond the scrub.
After several more miles, the city of Gillette would emerge from the barren landscape. Dubbed the Energy Capitol of the Nation, the city of 30,000 is a major hub for the fossil fuels that drive Wyoming’s economy: coal, oil and natural gas. The good economic times of earlier this decade treated Gillette well: The city is home to a well-maintained college, recreation center and events complex. ... Just beyond the northern edge of Gillette, Eagle Butte would finally appear, another massive mine that pumped out 17 million tons of coal in 2017. Its closeness to Gillette is an illustration of the symbiotic relationship between the city and the industries that power its — and much of Wyoming’s — economy.
Take the same drive today, and the landscape of the Powder River Basin would look the same. But under the surface, everything has changed. ... The basin’s Black Thunder and North Antelope Rochelle mines are now planning to operate as one, after their owners announced an unprecedented agreement in June. ... Cloud Peak, once considered a beacon of stability, will soon exit the basin after filing for bankruptcy nearly four months ago. The company is selling off its Cordero Rojo and Antelope mines to an out-of-state company.
Blackjewel’s two mines are now shut down, leaving the roads on the outskirts of Gillette eerily quiet. The company filed for bankruptcy, closed its mines and sent 600 employees home indefinitely on July 1. It’s unclear when the mines will reopen. ... The seismic upheaval begs the question: What does all of this change mean for the nation’s top coal-producing region? Even analysts aren’t certain. ... “The events of the last three months have been kind of extraordinary,” University of Wyoming economist Rob Godby said. “Is this a new normal? I really hope not. ... But there will probably be major adjustments — whether it’s a new mine closure, a downsizing or a significant layoff.”
....
Camille Erickson 307-266-0592, camille.erickson@trib.com Aug 25, 2019 Updated Aug 26, 2019 | 10 min to read
Highway 59 slices through the rolling prairie of northern Wyoming, a thin line of gray amid a sea of golden grasses and brown scrub. ... On a day in early May, a driver heading north on the two-lane road would first pass through Wright, an 1,800-person coal town that dissolves into the surrounding hills. Just beyond the city limits sit the nation’s two largest coal mines: Black Thunder and North Antelope Rochelle. Together, they produce more coal that the combined output of the county’s next 13 largest mines.
Twenty miles to the north, the driver would pass the turnoff for Cordero Rojo, the fifth-largest coal mine in the U.S. Wyoming-based Cloud Peak Energy, the mine’s owner, would still be solvent, having avoided the wave of bankruptcies that had crashed down upon many of its competitors. ... Next would come Belle Ayr, the nation’s sixth-largest coal mine, owned by a relative newcomer to Wyoming, Blackjewel. Beyond that, the driver would see more mines dotting the area, splotches of gray and black peeking out beyond the scrub.
After several more miles, the city of Gillette would emerge from the barren landscape. Dubbed the Energy Capitol of the Nation, the city of 30,000 is a major hub for the fossil fuels that drive Wyoming’s economy: coal, oil and natural gas. The good economic times of earlier this decade treated Gillette well: The city is home to a well-maintained college, recreation center and events complex. ... Just beyond the northern edge of Gillette, Eagle Butte would finally appear, another massive mine that pumped out 17 million tons of coal in 2017. Its closeness to Gillette is an illustration of the symbiotic relationship between the city and the industries that power its — and much of Wyoming’s — economy.
Take the same drive today, and the landscape of the Powder River Basin would look the same. But under the surface, everything has changed. ... The basin’s Black Thunder and North Antelope Rochelle mines are now planning to operate as one, after their owners announced an unprecedented agreement in June. ... Cloud Peak, once considered a beacon of stability, will soon exit the basin after filing for bankruptcy nearly four months ago. The company is selling off its Cordero Rojo and Antelope mines to an out-of-state company.
Blackjewel’s two mines are now shut down, leaving the roads on the outskirts of Gillette eerily quiet. The company filed for bankruptcy, closed its mines and sent 600 employees home indefinitely on July 1. It’s unclear when the mines will reopen. ... The seismic upheaval begs the question: What does all of this change mean for the nation’s top coal-producing region? Even analysts aren’t certain. ... “The events of the last three months have been kind of extraordinary,” University of Wyoming economist Rob Godby said. “Is this a new normal? I really hope not. ... But there will probably be major adjustments — whether it’s a new mine closure, a downsizing or a significant layoff.”
....
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