In theses times, what once seemed impossible suddenly seems obvious. What if the US simply bought the coal industry, retired the factories, protected the workers, preserved the communities, kept the coal in the ground and saved the planet. For less than $2B! Listen in.
The monetary value of the fossil fuel industry is tiny compared to the damage the industry is capable of inflicting on the world. In a time of economic turbulence and a need for government intervention, federal money can be well spent acquiring a controlling interest in the fossil fuel industry. The value obtained by the US will be in protecting jobs and quality of life in communities currently impacted by the industry as well as the long-term preservation of the environment.
It is possible for the US to outright buy coal for $2B, and the Oil Majors for $500B. Then the industries can be retired with dignity for the country.
The estimate of the market capitalization of the coal industry is based on simple google searches, seeking a list of large US coal companies their value. In late March 2020, we found that Alliance Resources is worth $0.456B, Arch Coal $0.414B, Cloud Peak Energy $0.293B and Peabody Energy $0.273B. Others companies, like Murray, Revelation/Blackjewel/NACCO,Consol, Foresight and Contura are much smaller. The total value of the combined list is $1.8B. Hence, a 51% controlling stake could be purchased for about $1B.
The estimate of the value of the oil majors is: Exxon is valued at $156B, Chevron at 130B, Phillips at 66B,Valero at 18B, EOG Resources at $21B, Anadarko at $37B, Occidental at $12B, Pioneer at $12B and Marathon at 3B. EOG is also a major Fracking company, along with Diamondback at $5B. The total combined value is about $500B.
The reading list
- An example of the respect the coal industry has for its workers and their communities
- Aronoff in the New Republic with the original proposal to nationalize fossil fuels.
- A related proposal to nationalize the industry
- Youtube of a webinar on Nationalization
- A successful example of WWII nationalization
Because we recognize the necessity of personal accountability for our actions, because we accept responsibility for a building a durable future and because we believe it is our patriotic duty as citizens to speak out, we must insist the United States transform it’s energy sector, over the next decade, under a just and equitable plan, that uses regulations, investments and a price on carbon to safeguard our collective future.
Thanks for listening.
…Ted McIntyre