The Impact Of Conversion On The Coal Industry

The impact of conversion on the coal industry can be summarized very briefly: We are going to have to mine an awful lot of coal. Fortunately, the United States has the coal reserves available, and given the right conditions, we can mine it. The coal reserves of the United States are enormous. If we consider them on the basis of proved reserves, using the standards of the petroleum industry--that is, resources mapped and explored and recoverable with present techniques at close to present costs--and compare that with the reserves of other fuels, coal constitutes 88 per cent of the proved recoverable energy resources of the nation. That includes oil, natural gas, oil shale and uranium, so long as the uranium is used in burner reactors. If we consider resources on the basis of "ultimate recoverable" reserves, that is, those resources which can be extracted with improved technology and at somewhat higher costs--and if we include those resources of all fuels not yet found but believed to be waiting discovery--coal still accounts for 74 per cent of the national total. We have built a hydrocarbon economy in which about 76 per cent of our total energy needs are supplied by petroleum and natural gas, and about 20 per cent by coal. Domestic resources of oil and gas are running dangerously low and, assuming a continued hydrocarbon economy, the 20 per cent supplied by coal may increase dramatically. We already import nearly a quarter of the petroleum we consume, and the chief source of additional imports seems to lie in the politically unstable Middle East. Natural gas is in even shorter supply, and the problems of importing it seem at least as difficult as those of oil. The fact is, the United States is already relying to an increasing extent on foreign fuel sources. There is an obvious national risk in making an important part of energy supply hostage to foreign governments of uncertain tenure and friendliness. There is also an economic risk--one of the chief reasons for last year's economic freeze was to try to correct the deficit in our balance of payments; it is obvious