Coal Review

Coal production in the United States in 2008 reached a record level of 1.06 Gt (1,171.5 million st), according to preliminary data from the U.S. Energy Information Administration (EIA) (Table 1). This is an increase of 2.2 percent, or 22.5 Mt (24.8 million st) above the 2007 level and 7.9 Mt (8.7 million st) above the prior record level set in 2006. Although coal production was higher in 2008, U.S. total coal consumption decreased in all sectors for the year. Coal consumption in the electric power sector in 2008 was lower by 0.3 percent, while coking coal consumption decreased by 2.8 percent and the other industrial sector declined by 3.7 percent. The commercial and institutional sector, that had been called the ?residential and commercial? sector prior to 2008, declined by 0.6 percent in 2008. It is the smallest of all the coal-consuming sectors. (Note: All percent-age change calculations are done at the short-tons level.) U.S. coal exports were significantly higher in 2008, while coal imports decreased during the year. Total coal stocks increased in 2008, as some consumers added to their stockpiles. The coal synfuel industry, which grew throughout most of this decade, disappeared from the scene due to the expiration of the available federal tax credits at the end of 2007. The decline in coal consumption during the year was the consequence of slowing domestic economic growth, particularly in the latter half of the year, combined with the weather conditions in 2008, resulting in lower demand for electricity. Preliminary data show that total generation in the electric power sector (electric utilities and independent power producers, including useful thermal output) in the U.S. decreased in 2008. Coal-based generation also decreased, resulting in a 3.2-Mt (3.5-mil-lion st) drop in coal consumed in the electric power sec-tor. Coal use in the non-electricity sector decreased by 3.3 percent to a level of 72.6 Mt (80.1 million st). The international coal markets in 2008 were the driv-