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Coallercoaster: As U.S. coal production drops, international demand rises

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Courtesy of Ensia

According to a recent report from the U.S. Energy Information Administration, the number of new and reactivated coal mines in the U.S. hit a 10-year low in 2013 — down nearly 67 percent from 2008.

Total coal production in the U.S. was also down during the same time period. The drop was driven by a number of factors, including regulatory pressure, reduced investment, shifting demand toward natural gas and renewables and weak exports.

Data and chart by Energy Information Administration

Overall, the total number of coal mines in the U.S. also declined, dropping by nearly 400 sites from 2008 to 2013. The report doesn’t distinguish between high- and low-output mines, which is an important distinction. According to the EIA, “in 2013, 877 Appalachian mines produced 270 million short tons [245 million metric tons] of coal compared with 52 Western region mines that produced 530 million short tons [480 million metric tons].”

Data and chart by Energy Information Administration

Why does this matter? At the end of 2014, the U.S. had 262 billion tons (237 billion metric tons) worth of coal reserves, or about 27 percent of the global total. Following the U.S., the next five countries for coal reserves are Russia, China, Australia, India and Germany. Together these countries account for 77 percent of known global reserves.

The decline in domestic coal mining and use may help reduce greenhouse gas emissions as outlined in the EPA’s Clean Power Plan.

Despite decreased U.S. production and consumption, global demand for coal is projected to continue increasing. The report “Global Coal Mining to 2020” prepared by Timetric outlines India’s plans to ramp up domestic coal production and consumption while Russia has set a target of increasing in-country use for power generation from 25 percent in 2014 to 27 percent by 2020. Overall, global demand is projected to continue increasing by 2.1 percent annually through 2019, according to IEA.

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