Markets for Southern Powder River Basin Coal

During its modem era, the southern Powder River Basin (PRB) in Wyoming has grown from meager origins in the early 1970s to become one of the most important coal-producing regions in the United States. In 1993, production and sales of southern Powder River Basin coal exceeded 190 Mt (209 million st), or about 20% of the US coal industry. Despite the remote location of the PRB relative to its potential markets, most coal industry observers anticipate continued strong growth to meet utility compliance plans for Phases I and II of the Clean Air Act Amendments (CAAA). This article is an overview of supply and demand issues concerning the marketing of southern PRB coal. It reviews the events leading up to the recent run on spot coal and offers a forecast of demand and prices.