South Texas Coal Supply: Innovative Plan To Serve The Future Industrial Coal Markets Of The Gulf Coast Region

The Gulf Coast, from New Orleans, Louisiana to Brownsville, Texas, is one of the largest high energy consuming areas in the United States. This region has areas of very high industrial density. The lower Mississippi River from Baton Rouge past New Orleans has a high industrial density. Lake Charles, Louisiana, the Orange-Beaumont-Port Arthur area, Houston (4 separate areas) and Corpus Christi all have the same high industrial density. This situation developed due to good transportation, good labor conditions, good weather and the abundance of cheap energy-gas and electricity. Obviously the latter had the greatest impact. The availability of cheap natural gas made Gulf Coast sites very attractive to energy intensive industry such as metals and petro-chemicals. The area was also very attractive to refinery development due to the large supply (endless?) of crude oil available. As we all know, the energy situation has changed dramatically in the last five years. The cost of a MMBTU has risen from the 17¢ to 19¢ level to a price of $1.95 to $2.10. The price of interstate gas, as defined by the National Energy Plan recently passed by Congress, was approximately $1.98/MMBTU escalated to October, 1978. It goes without saying, that this has had a major impact on doing business in the Gulf Coast. As fuel prices soared, different companies responded in different ways; but overall, industrial energy consumption along the coast was reduced 20% to 25% from 1974 to 1975. Since 1975 production and energy use has been increasing, however, production at some plants is still significantly below plant capacity.