Every indexed document

so much so that we believe potential demand drivers are

the power sector is the largest consumer (37%) of natural gas in the US. At prices

coal generators such as Drax in the UK have enjoyed better margins on higher power output (see

natural gas prices in Europe are linked by convention to oil)

largely as a result of the European recession. With European natural gas prices at 3x US

with coal‐generated power margins remaining attractive relative to

with – in the most extreme example – coal‐fired generator Dynegy

lower fuel costs offset lower power prices and the company emerged a

there are structural changes that have a global impact on the

Brazilian President Dilma Rousseff’s recent politicization of electricity tariffs)

are subject to significant government intervention

reactor manufacturers such as Mitsubishi Heavy) and

create additional forces for structural change. For example

and consequent issues of energy security and

Korea Electric Power has outperformed sharply at times in the past on even small

which is a large employer and which faces the consumer directly

as in Korea and China. The two worlds can coexist in the same country

as in Hong Kong and Thailand; the other is a victim of government

and a rise in the carbon credit price from €5 to €10/tonne would produce 25‐50% earnings

a combination of a +10% increase in coal prices