US Coal Industry

The US coal industry commands the first position in the world in terms of total reserves. With an annual output of 1,146.6 million short tons in 2007, it ranked second in coal production. A major portion of this production catered to the domestic consumption requirement of 1,128.0 million short tons. Around 93% of the domestic demand was generated by the power sector, followed by the residential, commercial and industrial sectors.

US Coal Industry: History

The major milestones of the US coal industry:

1748: Commercial coal production commenced in the US in the Manakin area.

 

1848: Creation of America’s first union of coal miners in Schuylkill County, Pennsylvania.

 

1901: First AC power plant developed by General Electric Co in PA to eliminate technical problems faced during DC transmission.

 

1973-74: Restrictions imposed by OPEC compel the US government to focus on the coal industry to meet the soaring energy demand.

 

1990: Annual coal production exceeds one billion tons for the first time.

 

1996: Implementation of the Energy Policy Act liberalizes the market for electric utility and triggers competition among coal producers.

 

2005: The law for the implementation of cleaner coal producing technologies is enforced.

US Coal Industry: Major Players

The following table complied by the Energy Information Administration (EIA) lists the top ten companies dominating the US coal industry:

Rank Company Name Production(In thousand short tons) Percent of total production 1 Peabody Energy Corp 192,318 16.8 2 Rio Tinto Energy America 134,353 11.7 3 Arch Coal Inc 126,881 11.1 4 Foundation Coal Corp 71,828 6.3 5 CONSOL Energy Inc 65,178 5.7 6 Massey Energy Co 37,169 3.2 7 NACCO Industries Inc 34,069 3.0 8 Westmoreland Coal Co 30,392 2.7 9 Murray Energy Corp 27,571 2.4 10 Peter Kiewit Sons Inc 27,171 2.4

US Coal Industry: Issues

Pollutants emitted during coal-based electricity generation pose a major threat to the environment. This situation is further aggravated by the existing power sector’s inability to utilize cleaner technology.

Obama’s administration is emphasizing the implementation of power generation through renewable energy sources. This shift in governmental policies is expected to cap coal demand from America’s power sector. The resultant low demand can be a major setback for the US coal industry.