Dryblower discovers the Green canary with a taste for coal

A CANARY is supposed to be a coal miner’s best friend. Not in Australia, where Dryblower is watching Green politicians take that title from the yellow bird with a promise to fight the expansion of the uranium industry, potentially turning everyone on the planet into a canary.
Dryblower discovers the Green canary with a taste for coal Dryblower discovers the Green canary with a taste for coal Dryblower discovers the Green canary with a taste for coal Dryblower discovers the Green canary with a taste for coal Dryblower discovers the Green canary with a taste for coal


Tim Treadgold

Just as a canary can be used as an early warning indicator of excess methane in a coal mine, and dies in the process, the Greens want to use the human race as an early indicator of excess carbon in the atmosphere.

That might seem a slight exaggeration of what has been happening in Australia recently but it is a position that Dryblower can argue, with gusto.

The reason for so much confidence is that the Greens have talked themselves into a corner from which there is no escape, unless they admit that the ultimate objective of their game is a retreat into strange world of high-cost electricity, and a reduction in essential services.

Consider the plight of the Greens, and the way in which they are helping coal increase its share of the global power market, much to the delight of the coal miners.

They oppose uranium, and they also oppose gas as seen in objections to the Queensland coal-seam gas industry, the WA liquefied natural gas industry, and drilling for gas off the New South Wales coast – and they oppose the coal industry.

Every alternative the Greens suggest is significantly more expensive, or is unproven, or is actually an environmental blight, such as covering scenic points of the planet with giant windmills.

Much of this is already well known and so obvious that at some point the Greens might even consider apologising for forcing the world down the coal-burning road in the name of their bizarre ideology and faith in a miracle solution – putting them in the same camp as other religions that believe in miracles.

Dryblower, however, cannot criticise the Greens too much because their opposition to virtually every affordable fuel source has re-invigorated the coal industry, helping to generate fat profits for coal-stock investors.

Old hat as much of the entire discussion over energy sources might be, it formed a fresh head last week when the Greens re-stated their anti-uranium position, without the slightest thought about what that really means – to the delight of everyone owning shares in a coalmining company.

Consider the sequence of events. On Monday came a statement from a Greens Senator, Scott Ludlam, who told a national newspaper that his party would use its freshly formed alliance with the Labor government to stop expansion of the uranium mining industry.

On Tuesday, the price of coal stocks started to rise, almost matching the performance of goldmining stocks despite there being little evidence of a price-driver under coal last week as there was under gold.

Macarthur Coal led the way up among the local sector leaders, adding 89c to $11.97. Stanmore added 9c to $1.05, which is actually 1% better than Macarthur’s 8% rise. Whitehaven gained 42c to $6.34, a rise of 7%.

But, the most telling evidence in this analysis by Dryblower is that the oil price, which is a more freely traded than coal and serves as a coal-price yardstick, fell over four consecutive days last week.

So, if oil was falling and not acting as a coal-price driver, what triggered the revival of interest in coal? Senator Ludlam and his revival of the Greens’ totally discredited anti-uranium stance, obviously.

Now, if Dryblower was a really cheeky chap, he might even suggest that tracking public anti-uranium statements by the Greens actually has money-making potential.

If you know when a Greens leader is about to make an anti-uranium speech, that represents a signal to buy coal stocks.

Obviously, this is not what the Greens want to happen but that’s simply another example of how they have not thought through the consequences of their utterly absurd energy policies which they are now trying to enforce via a position of power in the Australian government.