As a result of this startling fact, the price of coal continues to skyrocket. This dynamic has translated into stellar earnings for upper-tiered suppliers including Arch Coal (NYSE: ACI) and Peabody Energy (NYSE: BTU) and also a very positive industry outlook for the foreseeable future.

Here's a quick look at some
facts on the deficit:

-- The world could face a coal supply deficit of 33 million to 44 million short tons (30-40 metric tons, or tones)

-- China is currently faced with its biggest energy predicament since 2004.

-- India is running a coal deficit, with coal demand last year for the steel and energy industries reaching 452m tones, of which 61m tones had to be imported.

-- By 2015, the country will be consuming about 800m tones of coal but will have to import more than a quarter of this, according to estimates from KPMG.

-- Supply disruptions in Australia - the world's premier coal supplier - led to an $800M dip in monthly coal exports during the month of April.

-- Arch Coal management forecasts coal demand to eclipse supply by 25 million to 35 million metric tones, and expects this supply deficit to grow through 2010.

-- Coal accounts for about 69% of total US energy demand.

-- The World Coal Institute expects energy consumption to rise by 8% to 10% per year through 2020.

-- In a recently issued research note, Citigroup stated that prices for met coal could reach $330 - $350 per ton by 2010.

In our opinion, the ongoing coal deficit is extremely positive for proven suppliers ranging from upper-tiered players like Arch Coal to emerging producers including Quest Minerals and Mining (OTCBB: QMNM). Tune into Quest's investor call on Tuesday to learn more about how the company is now capitalizing on a very positive business environment.

Labels: Coal, OTCBB: QMNM, QMNM, Quest and Coal, Quest Minerals and Mining Corp