The Economics Of Using High Sulfur Coal

For the year 1985, the U.S. coal industry produced 881 million tons of bituminous coal and lignite. Domestic consumption amounted to 814 million tons. The electric utilities consumed 689 million tons, almost 85 percent of total consumption, over 78 percent of production. In May, 1986, the NCA forecast that with moderate growth rate averaging 1.9% per year from 1985 through the year 2000, production could reach 1,176 billion tons and domestic consumption 1079 billion. The estimate for electric utilities indicate 924 million tons for the year of 2000, about the same percentage of production and consumption as now experienced. Before we consider the main topic of this paper, the cost of using high sulfur coal, let us examine the coal use patterns of the last 25 years, the changes in those patterns and consider the reasons for those changes. Table I shows those changes.