Coal Review

Coal production in the United States in 2007 totaled 1.03 Gt (1,145.6 million st), according to preliminary data from the Energy Information Administration (EIA) (Ta-ble 1). This is a decrease of 1.5 percent, or 15.6 Mt (17.2 million st) from the 2006 record level of 1.05 Gt (1,162.7 million st). Although coal production declined in 2007, U.S. total coal consumption increased for the year. Coal consumption in 2007 in the electric power sector was higher by 1.9 percent, while coking coal consumption decreased by 1.1 percent and the other industrial sector declined by 5 percent. (Note: all percentage change calculations are done at the short-tons level.) U.S. coal exports were significantly higher in 2007, while coal imports remained at about the same level. Total coal stocks increased slightly during the year, as some consumers continued to rebuild their stockpiles that had been seriously depleted in 2005 due to transportation issues. The growth in coal consumption during the year was primarily a result of the weather-related increases in the demand for electricity in 2007. Preliminary data show that total generation in the electric power sector (electric utilities and independent power producers) in the United States grew in 2007. Coal-based generation also increased, resulting in a 17.9-Mt (19.8-million-st) increase in coal consumed in the electric power sector. Coal use in the nonelectricity sector decreased by 3.8 percent to 74.7 Mt (82.4 million st). In the international markets in 2007, U.S. coal exports increased to levels not seen in recent years while coal imports were mostly static. U.S. coal exports totaled 53.7 Mt (59.2 million st), an increase of 8.6 Mt (9.5 million st) above 2006. Coal imports in 2007 ended the year at 32.9 Mt (36.3 million st), 91 kt (100,000 st) higher than in 2006. Coal prices in 2007 were split, with most domestic prices higher for the year while the international prices were overall lower. Although the average delivered price of coal increased for most users in the United States in 2007, the increases were smaller than what had been expe-