The New Black Gold

With 27% of the world's reserves, the U.S. is the Saudi Arabia of coal. That was once a dubious distinction because coal is harder to transport than crude oil and doesn't burn as cleanly. But as crude has become increasingly expensive, coal has emerged from the dust as a viable energy alternative. And that, naturally, has stoked interest among investors.
Stocks of U.S. coal producers have handily outpaced those of Big Oil over the past two years. During that period, for example, shares of oil giant ExxonMobil gained 37%, while the stock of Peabody Energy, the world's largest private-sector coal producer, more than quadrupled. Does this mean the coal barge has sailed and it's too late to get on board? Not necessarily.