Shortages Everywhere Including Power Outages Caused By a Shortage of Coal

No matter what your take on climate change, it’s hard to make any progress without China. But guess what China’s doing.

Please note China Orders Coal Mines to Increase Production as power shortages bite.

Authorities in Inner Mongolia, China’s second largest coal-producing province, have asked 72 mines to boost production by a total of 98.4 million metric tons, according to state-owned Securities Times and the China Securities Journal, citing a document from Inner Mongolia’s Energy Administration. The order, which was approved on Thursday, took effect immediately, the state media outlets said.

The figure is equivalent to about 30% of China’s monthly coal production, according to recent government data. Inner Mongolia’s energy authorities didn’t immediately respond to a request for comment by CNN Business.

Power shortages have spread to 20 provinces in recent weeks, forcing the government to ration electricity during peak hours and some factories to suspend production. These disruptions resulted in a sharp drop in industrial output last month and weighed on the outlook for China’s economy.

The order comes only days after China’s top economic planning agency asked the country’s three biggest coal producing provinces — Inner Mongolia, Shanxi, and Shaanxi — to deliver 145 million metric tons of coal in the fourth quarter, so that the “livelihood use of coal” is not interrupted, according to separate statements by the provincial authorities last week.

Coal Shortages Push Up Prices

The Wall Street Journal reports Coal Shortages Push Up Prices, Weigh on Economies

Coal supply shortages are pushing prices for the fuel to record highs and laying bare the challenges to weaning the global economy off one of its most important—and polluting—energy sources. 

The crunch has many causes—from the post-pandemic boom to supply-chain strains and ambitious targets for reducing carbon emissions. And it is expected to last at least through the winter, raising fears in many countries of fuel shortfalls in the months ahead.

Australia’s Newcastle thermal coal, a global benchmark, is trading at $202 a metric ton, three times higher than at the end of 2019. Global production of coal, which generates around 40% of the world’s electricity, is about 5% below pre-pandemic levels. 

In Europe, the rising prices for coal and other energy resources have hit factory output and driven household energy bills higher. Major coal importers in Asia, including Japan and South Korea, are jostling to secure supplies.

In China, dwindling supplies and surging costs have resulted in electricity shortfalls on a scale unseen in more than a decade, hitting industry and prompting some cities to turn off traffic lights to conserve power.

Globally, coal supply hasn’t kept pace with demand driven by the buoyant economic recovery world-wide after last year’s pandemic slump. 

Glasgow Climate Summit 

The COP26 Climate Summit is in Glasgow, UK. It runs from October 31 to November 12, 2021.

COP stands for the conference of the Parties to the 1992 United Nations Framework Convention on Climate Change, which set the stage for all international cooperation on climate. The COP is the top decision-making body for implementing the Convention and follow-up instruments like the 2015 Paris Agreement. Generally meeting once a year, the COP reviews national reports on emissions reductions and other climate measures. Glasgow will host the twenty-sixth COP. 

Top Priorities 

  1. Keep global temperature rise to no more than 1.5 degrees Celsius through rapid, bold emissions cuts and net-zero commitments.
  2. Increase international finance for adaptation to at least half the total spent on climate action.
  3. Meet the existing commitment to provide $100 billion in international climate finance each year so that developing countries can invest in green technologies, and protect lives and livelihoods against worsening climate impacts.

COP 26 Details 

The Washington Post has COP26 Details.

Tens of thousands of people from every corner of the globe are preparing to gather in Glasgow for a two-week United Nations summit that could shape how — and whether — the world effectively slows climate change in the years ahead.

Irony abounds. If activists were so concerned, perhaps they would stay home and do this summit virtually instead of jet-setting tens of thousands of people to discuss ways to reduce emissions.

Compounding the irony: “Climate protesters are planning to arrive in force to demand that world leaders match their rhetoric with real-world action.”

Questions Abound

  • What about Covid concerns of putting tens of thousands of people from all over the globe together?
  • Where is the great social distancer when you need one?

Already a Failure

Top officials have made clear their desire to finally “consign coal to history,” in the words of Alok Sharma, the U.K. politician serving as president of COP26.

In late 2015, nations agreed to work together to limit the warming of the planet to “well below” 2 degrees Celsius and, if possible, to stop at 1.5 Celsius (2.7 degrees Fahrenheit). 

Since then global temperatures have allegedly risen 1.2 degrees of that 1.5 degree goal. 

Catastrophic Nonsense 

A recent U.N. analysis found that even if nations meet their current promises, the globe would still be on pace to experience an average temperature rise of 2.7 Celsius by the end of the century — a path U.N. Secretary António Guterres has described as “catastrophic.”

Investigating the Mass Hysteria Over 1 Degree in Climate Change Since 1850

Please consider my September 5 report Investigating the Mass Hysteria Over 1 Degree in Climate Change Since 1850

Key Snip Synopsis

  • Temperatures have risen a a best estimate of 1.07°C since 1850 due to man-made causes.
  • The sea rise between 1971 and 2006 was 1.3 mm per year. That’s 0.0511811 inches per year.
  • The sea rise between 2006 and 2018 was 3.7 mm per year. That’s 0.145669 inches per year.
  • Under all emissions scenarios, global warming of 1.5°C and 2°C will be exceeded during the 21st century.

Future Emissions Projections Table

Future Emissions “What If?”

  • If by some miracle we follow the SSP 1-1.9 row in the table, the current best estimate is temperatures will rise anyway until 2100 by 1.4 degrees.
  • According to row SSP 2-4.5, if there is no further progress at all until 2050, temperatures would only rise an additional 1.3 degrees vs SSP 1-1.9.
  • Under SSP 1-2.6, there’s a mere 0.4 degrees difference from a very radical effort to cut emissions to 0 by 2050!

Media Can’t Handle the Climate Truth

Please consider the WSJ Op-Ed Media Can’t Handle the Climate Truth

After 41 years of promoting a fuzzy and unsatisfying estimate of how much warming might result from a doubling of atmospheric CO2, the world’s climate science arbiter has finally offered the first real improvement in the history of modern climate science.

The U.N. panel now says the dire emissions scenario it promoted for two decades should be regarded as highly unlikely, with more plausible projections at least a third lower.

Cost Comparison

The cost of following scenario SSP 1-1.9 would be in the tens of trillions of dollars if not higher. The alleged benefit is 0.4 degrees by 2100, phased in over roughly 80 years.

The cost of following SSP 1-2.6 is arguably little. We may very well already be on a path to reduce emissions by 50% by 2050.

AOC wants an 80% reduction by 2030 and 100% by 2035. That is far more radical than SSP 1-1.9.

It’s also economically crazy. I believe, anything beyond SSP 1-2.6 is economically crazy.

AOC and the progressives are hell bent on an absurd proposal of an 80% reduction in carbon by 2030. And that is without China on board.

How to Avoid a Carbon-Based Global Trade War 

An 80% carbon reduction by 2030 will never happen. But there will be huge economic pain if they try.

In How to Avoid a Carbon-Based Global Trade War in Simple Steps, World Trade Online presents one idea.

I present another, far simpler idea: Don’t Do Anything Stupid Like Start One.

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Cocoa
Cocoa
2 years ago
Climate change(inevitable-like it happens every day) or global warming(happens in some areas and not in others). Take your pick. Getting off carbon fuels is just a good idea, from air quality standpoint. We don’t need Hollywood Catastrophe scenarios to sell people on this
Webej
Webej
2 years ago
asked the country’s three biggest coal producing provinces — Inner Mongolia, Shanxi, and Shaanxi — to deliver 145 million metric tons of coal in the fourth quarter
Shanxi province is trying to cope with unusual flooding.
Responsible for 30% of China’s coal output, 10% of the mines are shut down right now.
Maximus_Minimus
Maximus_Minimus
2 years ago
Just for comparisons, during the ice age periods, the averige earth temperature was about 5 degrees lower than these days. The result was not only the ice caps which stretched till London and New York, but also much lower sea levels. It wasn’t a long time ago, so it’s not difficult to establish. You can take it from there.
Doug78
Doug78
2 years ago

Dear Mish,

There is a grave paradox
here. If I am a bad boy generally I get a lump of coal in my stocking at
Christmas but if coal is in short supply and if I get a lump of coal meaning
something valuable then what does that say for Santa’s system for punishing bad
behavior and rewarding good ones if in both cases children, the good and the
bad, receive something valuable? If children do not learn the difference at an early age would not that result in the fall of Civilization and massive unemployment for the hard-working little folk like me?

 A Concerned Elf

Eddie_T
Eddie_T
2 years ago
Reply to  Doug78
Dear Doug,
This year Santa is requesting all European children to hang a stocking-shaped latex balloon from your mantle, so that Santa can fill it with reindeer farts to aid in carbon sequestration and replace the natural gas your parents were so eager to abandon for wind and solar.
We hope this new sustainable supply of naturally sourced methane will keep you warm for at least one day of the winter season, and the experiment will be a win-wind for all of us.
Santa
Doug78
Doug78
2 years ago
Reply to  Eddie_T
I heard that too! We are supposed to store the farts and bring them to the headquarters of the Radical Ecologists based in Holland where we release them all at once. Should be light them as well Santa or just fill the building with our stored farts and then light them?
Intelligentyetidiot
Intelligentyetidiot
2 years ago
its all going according to the playbook of centrally planned economies, inflation, shortages, more inflation, next in line, price controls are coming before a healthy black market starts to develop, then more government crackdown until something gives.
mrchinup
mrchinup
2 years ago
Climates have been changing since time began, anyone who thinks they can change it or stop it is a fool.
mrchinup
mrchinup
2 years ago
Reply to  mrchinup
Let me add to this post. It might be possible to slow it but not change the direction. If the oligarchs get their way and kill off most of the population like they have talked about it might possible slow it, possibly. People are the cancer of the earth.
Tony Bennett
Tony Bennett
2 years ago
“The COP is the top decision-making body for implementing the Convention and follow-up instruments like the 2015 Paris Agreement. Generally meeting once a year, the COP reviews national reports on emissions reductions and other climate measures.”
What a joke.
If countries truly concerned just have their central banks tighten monetary policy.  It would be slow the growth by any means nonsense and allow for sustainable long term growth.  Federal Reserve hinting at “green policy” just more nonsense.
RonJ
RonJ
2 years ago
“Irony abounds. If activists were so concerned, perhaps they would stay
home and do this summit virtually instead of jet-setting tens of
thousands of people to discuss ways to reduce emissions.”
Obama told us that climate change is real and dangerous. Then he jetted all over the place on air Force One, pumping carbon emissions into the atmosphere, without a care. The elitists exempt themselves from what they want to impose on the rest of us, while pontificating that we are all in this together.
I used to get personalized electricity and water use comparisons in the mail from the water and power company. Typically, 93-94% of typical households were using more electricity than i was. My water usage was also lower. The liberal excuse is that “I can’t do anything on my own to fight climate change.” 
KidHorn
KidHorn
2 years ago
The problem is the global warming alarmist want a drastic and sudden drop in coal and methane electricity generation. So, there’s little to no investment in fossil fuels while renewables catch up. The problem is the drop in fossil fuel production drops at a faster rate than increases in renewable generation. And on top of it electricity demand continues to go up every year.
Doug78
Doug78
2 years ago
By far the best solution is not windmills and batteries but to find a cost effective way to remove carbon from the atmoshere. I like the benefits of a high standard of living that our civilzation provides and at my age not ready to live a Medieval peasant lifestyle that the Radical Ecologists want us all to do. Musk has the approach which is to science the hell out of it. Anyone want to win the $100 million prize?
KidHorn
KidHorn
2 years ago
Reply to  Doug78
The irony is global warming leads to global cooling. The hotter the surface temperature, the more the earth cools. And not by a small amount. It’s proportional to the absolute temperature to the 4th power. Global warming cause a greener earth and increased rainfall. Both of which lower CO2 levels.
The history of the earth has repeating cycles of volcanic activity jacking up CO2 levels, causing the earth to warm and then gradually cooling due to what I wrote above.
Doug78
Doug78
2 years ago
Reply to  KidHorn
We would kinda like to stay in the sweet spot, not too hot and not too cold and have the option of managing the extremes. Frankly a world a bit more tropical  would not bother me much but a swing back to Ice Ages would. 
KidHorn
KidHorn
2 years ago
Reply to  Doug78
No doubt. Without the last 5000 years of human activity raising greenhouse gas levels, we would likely be in the early stages of an ice age now.
Doug78
Doug78
2 years ago
Reply to  KidHorn
That might be the case. 
FromBrussels
FromBrussels
2 years ago
ONLY ONE PROBLEM on our already half destroyed planet :  we are too  many fn human predators….8 billion and ruthlessly ticking….INSANE !  
Maximus_Minimus
Maximus_Minimus
2 years ago
Reply to  FromBrussels
The cretins want emission control, polution control, diesel emission control… invent anything control. The only thing they don’t touch will a long pole is population control. In reality, since the population in advanced economies is at best stangnating, that means immigration control. Let the fast breeding hellholes deal with their own problems.
Doug78
Doug78
2 years ago
Reply to  FromBrussels
I thought we weren’t  bloodthirsty predators but sheep?Which is it because we can’t be both. 
Maximus_Minimus
Maximus_Minimus
2 years ago
Reply to  Doug78
The two are positively not exclusive.
Doug78
Doug78
2 years ago
Vampire sheep?
GodfreeRoberts
GodfreeRoberts
2 years ago
China’s power squeeze is the result of an economy growing faster than ever in its history, while striving for carbon neutrality by 2060, in early winter.
Eddie_T
Eddie_T
2 years ago
Reply to  GodfreeRoberts
“an economy growing faster than ever in its history”
China’s power squeeze is a result of finding out what it’s going to be like to live in a post-industrial economy, just like we found out, and GB and Europe found out. China’s GDP growth peaked in 2007, and it’s going nowhere but down from here.
anoop
anoop
2 years ago
along with the bond market, the fed has broken the commodity market and supply chains.  the less that businesses are able to forecast pricing and demand, the less they will produce and the more they will charge.  we’re f-ed! 
Anon1970
Anon1970
2 years ago
Nigeria’s population is expected to grow from 211 million (2021) to 401 million in 2050, which is a projection higher than that for the US (379 million). Should Europeans freeze in the dark so that Nigeria can keep pumping out babies? For more population projection, go here: link to ined.fr I suspect that any progress made by First World countries in combating global warming in the next three decades will be swamped by population growth in Africa.
jiminy
jiminy
2 years ago
Reply to  Anon1970
I also point this out only to be called a Nazi, an atheist or full of hate etc.  Population is driving pandemics, warming and wage issues along with quality of life problems.
KidHorn
KidHorn
2 years ago
Reply to  Anon1970
Outside of sub Saharan Africa, world population growth is tiny. I suspect, eventually black parts of Africa will become more modern and have lower population growth.
randocalrissian
randocalrissian
2 years ago
Reply to  Anon1970
Educational attainment leads to lower birthrate [ed: inversely proportional]. We should be educating Africa as much as we can afford to underwrite the venture.
Webej
Webej
2 years ago
Reply to  Anon1970
These extrapolations placing the largest 10 gigacities in Africa are an exercise in monotony — on tone.
Trends follow trendlines until they don’t.
Will Africa have the urban infrastructure to support all those people? Water, sewers, electricity, running water, transport and transit?
Or will attrition and lack of development take its toll?
TCW
TCW
2 years ago
While traveling on the interstate the thought occurred to me…if everyone I see (a lot) were driving electric cars, I wonder how long I would have to wait in line to get recharged.  I think there would be a long line.
Doug78
Doug78
2 years ago
Reply to  TCW

 

We should go to green hydrogen to fuel our vehicles however
hydrogen is hard to contain and has a tendency to explode at inopportune times.
As a gas it is too diffuse to keep much capacity. We could cool it down for it
to become a liquid but that itself it takes energy. We need to be able to turn
the green hydrogen into something that is liquid at room temperature.
Fortunately if we add carbon atoms to the hydrogen we can come up with
configurations where the hydrogen and carbon atoms combined become a
high-energy liquid which could be used to run motors in a dependable manner. A
tankful could easily run the car for hundreds of miles and could be filled to capacity
in a few minutes.

The way to go is to use windmills to generate electricity to
generate green hydrogen which we combine with carbon atoms to make a
high-energy liquid that will run cars for hundreds of miles. If there is a more
efficient way to get a hydrogen-carbon liquid full of useful energy I would
love to hear about it.

Eddie_T
Eddie_T
2 years ago
Reply to  Doug78
Interesting. I have generally discounted the chances for a hydrogen fuel economy, but I like the idea you’re suggesting.
Doug78
Doug78
2 years ago
Reply to  Eddie_T

To be electric, or not
to be: that is the question:

Whether ‘tis nobler in
the mind to suffer

The slings and arrows of
outrageous hydrocarbons,

Or to take arms against
the Big Oil companies,

And by opposing end
them? To electrify; to Tesla;

No more; and by a Tesla
to say we end

The heart-ache and the
thousand natural shocks

That the Planet is heir
to, ‘tis a consummation

Devoutly to be wish’d.
To electrify, to Tesla:

To Tesla: perchance not
to find a charger; ay, there’s the rub.

Eddie_T
Eddie_T
2 years ago
Reply to  Doug78
Excellent! 
You can always get on the phone and pay Elon to “upgrade” the battery you already paid for that wasn’t optimized because you cheaped out when you bought the car.
Houses near the new Tesla plant, which was formerly a bad part of town, are up 45% over the last year. 
Doug78
Doug78
2 years ago
Reply to  Eddie_T
Thanks Eddie! I invest in EVs but I don’t drive one because I want to enjoy the flexibility gas cars give me for as long as possible.
Doug78
Doug78
2 years ago
Reply to  Eddie_T
Bad part of town in Texas is equal to high middle class housing in Bay area California. When they come they think they are in heaven. All they need is a few trendy eateries and they love it.
Doug78
Doug78
2 years ago
Reply to  Eddie_T
This should make you happy.
randocalrissian
randocalrissian
2 years ago
Reply to  Doug78
To the tower! Rapunzel!
Doug78
Doug78
2 years ago
Golden hair climbing! Nothing better!
TCW
TCW
2 years ago
Reply to  Doug78
The way I understand it, the way hydrogen produces power to drive a car is it’s combined with oxygen in the fuel cell.  The byproduct is water, H2O.  I’m not a chemist, but it seems if you combine oxygen with a hydro-carbon in the cell you will end up with CO2 which is what we’re trying to get away from.
Doug78
Doug78
2 years ago
Reply to  TCW
😉
Doug78
Doug78
2 years ago
Reply to  TCW
Seriously
gasoline and liquid hydrocarbons are the perfect fuel if not for the CO2
problem. They easily to find, easy to refine, contain a very high energy
content, easy to transport and relatively safe. Electric cars existed in the beginning
too but soon enough the advantages of using hydrocarbons became apparent. If we
want to keep the same advantages and we do then we must invent something like hydrocarbons
in any case. If EVs can recharge in a few minutes and if the network can handle
peak traffic loads then EVs will be just fine but for the foreseeable future
recharging your car will take you much too long. Flexibility is a very
important factor and shouldn’t be underestimated.
Webej
Webej
2 years ago
Reply to  Doug78
Ammonia is the energy densest fuel, and doesn’t have the problem of hydrogen (containment).
However, it has its own technological challenges
whirlaway
whirlaway
2 years ago
Reply to  TCW
What that illustrates is that personalized transport is not the solution.   
Eddie_T
Eddie_T
2 years ago
Reply to  whirlaway
I doubt we’re going to move away from personal transport anytime soon, no matter how much sense it might make.
Eddie_T
Eddie_T
2 years ago
Reply to  TCW
Electric cars nowadays are mostly charged at home, and at charging stations installed by certain techie employers. I have never used a public charging station other than those free ones they have in some shopping centers. I love our Volt but my wife has completely co-opted it and I never drive it anymore. 
I will probably get a Bolt when LG can deliver the new batteries Chevy needs to complete the recalls…right now AFAIK you can’t buy a new one from Chevy due to the supply chain problem with the batteries. 
TexasTim65
TexasTim65
2 years ago
Reply to  TCW
Here’s a really nice article about that very issue that I came across recently. Written by a guy in Canada who did some observations over Labor day weekend (major long distance travel weekend). It’s a good read on the challenges of making electric work.
mrchinup
mrchinup
2 years ago
What a riot! While all of this is going on communist China is introducing hundreds of thousands of electric cars per quarter to their people. What could possibly go wrong. I’ve got my popcorn ready, should be a fun ride. Their RE seems to be having a little problem too. LM-O.. 
Henry_MixMaster
Henry_MixMaster
2 years ago
China has a coal shortage. Good. Screw them.
Johnson1
Johnson1
2 years ago
Not just China.  India does too.  I just read they are  running on fumes. 
This is going to get interesting.  We are in the shoulder season of low demand for many energy products and there is a shortage.  What ever continent experiences this years polar vortex, they will see a spike in prices. 
Luckily demand has been flat in the U.S.   Even though nat gas is only at 6 and other places in the world it is 20, 50 or higher, we will start exporting more which could cause prices to creep higher. 
Anyway, even at 6 I suspect this will lead to a 35% to 50% higher heating bills this winter for people using nat gas. 
whirlaway
whirlaway
2 years ago
“The cost of following scenario SSP 1-1.9 would be in the tens of trillions of dollars if not higher. “

Cost is a BS excuse.   The only relevant criteria are (a) Do we have the technical know-how?  (b) Do we have the material  resources needed? and (c) Do we have the time?     

Cost is just a number.   If an alien civilization sent a signal to us that they will be here to destroy us in 30 or 40 years and we have good reason to believe that they will, those are the things we will be looking at.   Not whether we are balancing our budgets!  

Mish
Mish
2 years ago
Reply to  whirlaway
Ridiculous
The outcome of two scenarios is roughly the same.
One would cost trillions, the other noting.
whirlaway
whirlaway
2 years ago
Reply to  Mish
More than *what* the amount is, one should be looking at *how* it is being spent.   Alternative energy is dependent on fossil fuels so anything that is spent on things that would not lower the per capita consumption of even clean energy is going to be counterproductive e.g. replacing the gasoline car with the electric car, which btw is the private sector “solution”.   Of course, it’s not the solution regardless of who bets on it, be it the government or the private sector.   
Public transit systems, energy conservation, lowering the per capita intake of meat etc., are the ways to go.  The private sector has no interest in those areas, since they (and we) live in the “waste is growth” paradigm.  Only sound public policy can steer us in the right way.   Granted that we are a long way from that, considering how corrupted our political system is.  
Eddie_T
Eddie_T
2 years ago
Reply to  whirlaway
The determinant of the “how” we spend public money, is, unfortunately predicated on whether it makes the donor class scads of money.
whirlaway
whirlaway
2 years ago
Reply to  Eddie_T
Right.  That is why I feel the so-called anti-war stance of libertarians to be so bogus and full of it.   If you say “corporations are people” and “money is speech”, then forget about your anti-war ideology.   Military hardware manufacturers are going to donate to those who run for office, and they expect a lot of military spending and wars from the bought politicians in return.
Webej
Webej
2 years ago
Reply to  whirlaway
Yes. We should have been spending on research by orders of magnitude greater than we have, knowing we need to solve these problems  regardless (even if it’s just to save the oil for petro-chemical resources) since there is not an infinity of fuel. But instead of getting down to it, everybody thinks the market will solve it by magic … but we already know that when market signals start to force things, we may not have enough resources and time to adapt.
TexasTim65
TexasTim65
2 years ago
Reply to  whirlaway
We have all 3 of the things you mentioned to stop a solar CME from destroying our electrical grid (allegedly). So should we harden our grid against one just because we can? I don’t think so.
What you don’t say about doing this is that whatever you spend on climate change is money / time / resources you don’t spend on something else (opportunity cost). So in order to do something we’d have to forgo doing other things (lots of other things).
The alternative as Mish said is to do nothing since things aren’t much different under that scenario. Plus we get the benefit of watching what happens in Europe over the next 10-20 years and we can simply avoid all their mistakes and go directly to the finish line once they get a working solution (if they can get one).
TheWindowCleaner
TheWindowCleaner
2 years ago
Reply to  whirlaway
Yes, the Martians, who would have an exteriorized, theoretically un-acculturated and objective viewpoint are undoubtedly laughing their asses off at us.
tedr01
tedr01
2 years ago
My goodness you are on a roll tonight Mish. Another great post and commentary. Well done.

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