Arch's Leer Sees Blue Skies for West Virginia Coal

Nov 14 - State Journal, The

Arch Coal President and CEO Steven F. Leer sees opportunity knocking on West Virginia's door as the nation struggles with high energy costs and an ever-changing global energy market.

Citing growing energy demand in Asia and the recent hurricane-related disruption of energy production and distribution in the Gulf of Mexico, Leer said the Mountain State is well positioned to provide the nation a larger share of its energy supply.

Further, Leer said, coal will continue to be critical to the nation's energy mix, including the possible conversion of coal to motor fuel. West Virginia is a candidate for such an investment, he said.

Serving as keynote speaker for the annual Fund for Concord University Dinner Oct. 11 in Charleston, Leer answered coal's critics directly.

"As a nation, we're going to need all of our energy sources," he said. "More and more people are coming around to that way of thinking."

Leer said the growth in demand for energy in China and India has driven up costs of coal production worldwide and affected world energy markets. He said he expects the energy price spike to last four or five years, perhaps longer, and that shift is having both positive and negative effects in West Virginia greater economic opportunities that include more high-paying employment and increased tax revenues but higher energy costs for families and businesses.

Leer said U.S. nuclear power plants have improved their operational efficiencies in recent years to help meet the nation's growing electricity demands. Natural gas-fired power plants have played a role in meeting that growing demand, too. But Leer said nuclear plants face substantial production rollbacks for maintenance, and soaring gas prices are making that energy resource noncompetitive.

As a result, coal-a fuel the U.S. has in abundance - has a chance to build on its 50 percent share of meeting the nation's electricity generation demands, Leer said.

With energy prices at record levels, he continued, the nation's economy is facing a very real challenge that will require extensive expansion of its energy generation base during the next 20 years.

"Coal is part of America's energy solution, and West Virginia is part of that solution," said Leer, who added that he believes such crises have a way of pulling together Americans to find solutions.

Leer, whose company is the nation's second largest coal producer, said the U.S. has made great strides in recent years in improving coal fired power generators' environ mental performance but added much work remains. He said, however, that he is optimistic that more research will lead to improved en vironmental performance.

While the nation and its economy continue to thirst for electricity, the nation's motorists are coping with skyrocketing motor fuel prices. Leer said his St. Louis-based company is considering a coal-to-liquid-fuel plant in Wyoming.

"I think we'll see an opportunity for a coal-to-liquid plant here in West Virginia," he said.

Leer told Concord University supporters his industry would need capable, educated people in the future, and the state's colleges and universities would play a role in preparing future coal industry employees.

Concord dinner organizers reported the dinner raised more than $100,000 toward the university's scholarship programs.