Released October 18, 2017 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Driven largely by exports, U.S. coal production is expected to increase by 8% in 2017 from 2016, according to the Energy Information Administration (EIA). However, U.S. coal production averaged 192 million short tons per quarter in the first half of 2017, a slight decrease from the second half of 2016, but still above levels reached in the first half of 2016. Industrial Info is tracking more than $2.7 billion in active U.S. coal-related mining projects.
Coal exports for the first seven months of 2017 totaled 51 million short tons, which was 62% higher than in the same period of 2016, according to the EIA's most recent Short-Term Energy Outlook. The EIA said it expects growth in coal exports to slow, with exports for all of 2017 forecast at 75 million short tons, 15 million short tons (24%) higher than the 2016 level.
On Tuesday, the EIA said production declined from the second half of last year to the first half of this year as a result of weaker demand for thermal coal used by power plants. However, production of metallurgical coal, which is used in steel manufacturing, increased for the third consecutive quarter.
Production of thermal coal (also known as steam coal), which fuels power plants, made up more than 90% of U.S. coal production in the first half of 2017, the EIA said on Tuesday. About half of the thermal coal is mined in Wyoming and Montana.
"In recent years, coal has lost part of its electricity generation share to other fuels, but it still accounted for 30% of the U.S. electricity generation mix in the first half of 2017 compared with natural gas and renewables (including hydro) at 31% and 20%, respectively," according to the EIA.
The largest reductions in demand for thermal coal in the second quarter of 2017 occurred in Illinois, Kansas and Minnesota, which together accounted for nearly half of the total U.S. decline in thermal coal consumption, the EIA said. The overall decline in U.S. coal demand resulted in a reduction of 11.7 million short tons in total thermal production in second-quarter 2017, of which 8.1 million short tons was mined from the Powder River Basin in Wyoming and Montana.
The drop in domestic demand for thermal coal was illustrated earlier this month when Luminant, a subsidiary of Vistra Energy (NYSE: VST) (Dallas, Texas), said it plans to retire the coal-fired, 1,800-megawatt (MW) Monticello Power Plant in Texas early next year. For more information, see October 9, 2017, article - Another One Bites The Dust: Luminant to Close Coal-Fired Power Plant in Texas .
Peabody Energy Corporation's (St. Louis, Missouri) Rawhide coal mine in the Powder River Basin in northeastern Wyoming sends 30% of its production to Luminant's Monticello plant, according to the Institute for Energy Economics and Financial Analysis (Cleveland, Ohio). The mine produced about 11 million tons of coal in the first six months of this year, sending 3.6 million tons to Monticello. For more information, see October 16, 2017, article - Luminant to Close Two More Texas Coal-fired Power Plants.
According to a recent Department of Energy (DOE) report, between 2002 and 2016, 531 coal generating units representing about 59,000 MW of generation capacity retired from the U.S. generation fleet. The Energy Information Administration (EIA) reported that coal-fired power plants made up more than 80% of the 18,000 MW of capacity that was retired in 2015. The DOE report said about 12,700 MW of coal-fired generation was expected to retire through 2020.
Meanwhile, average U.S. quarterly metallurgical coal production increased from 14.1 million short tons in the second half of 2016 to 16.8 million short tons in the first half of 2017, driven by higher worldwide demand, particularly from China, Japan, and India, the EIA said on Tuesday. U.S. metallurgical coal exports to Asia increased as China, Japan and India looked to offset disruptions to their supply of Australian coal caused by Cyclone Debbie in April 2017. In addition, China's demand for metallurgical coal increased as its steel production reached record levels in June, according to the National Bureau of Statistics of China.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Coal exports for the first seven months of 2017 totaled 51 million short tons, which was 62% higher than in the same period of 2016, according to the EIA's most recent Short-Term Energy Outlook. The EIA said it expects growth in coal exports to slow, with exports for all of 2017 forecast at 75 million short tons, 15 million short tons (24%) higher than the 2016 level.
On Tuesday, the EIA said production declined from the second half of last year to the first half of this year as a result of weaker demand for thermal coal used by power plants. However, production of metallurgical coal, which is used in steel manufacturing, increased for the third consecutive quarter.
Production of thermal coal (also known as steam coal), which fuels power plants, made up more than 90% of U.S. coal production in the first half of 2017, the EIA said on Tuesday. About half of the thermal coal is mined in Wyoming and Montana.
"In recent years, coal has lost part of its electricity generation share to other fuels, but it still accounted for 30% of the U.S. electricity generation mix in the first half of 2017 compared with natural gas and renewables (including hydro) at 31% and 20%, respectively," according to the EIA.
The largest reductions in demand for thermal coal in the second quarter of 2017 occurred in Illinois, Kansas and Minnesota, which together accounted for nearly half of the total U.S. decline in thermal coal consumption, the EIA said. The overall decline in U.S. coal demand resulted in a reduction of 11.7 million short tons in total thermal production in second-quarter 2017, of which 8.1 million short tons was mined from the Powder River Basin in Wyoming and Montana.
The drop in domestic demand for thermal coal was illustrated earlier this month when Luminant, a subsidiary of Vistra Energy (NYSE: VST) (Dallas, Texas), said it plans to retire the coal-fired, 1,800-megawatt (MW) Monticello Power Plant in Texas early next year. For more information, see October 9, 2017, article - Another One Bites The Dust: Luminant to Close Coal-Fired Power Plant in Texas .
Peabody Energy Corporation's (St. Louis, Missouri) Rawhide coal mine in the Powder River Basin in northeastern Wyoming sends 30% of its production to Luminant's Monticello plant, according to the Institute for Energy Economics and Financial Analysis (Cleveland, Ohio). The mine produced about 11 million tons of coal in the first six months of this year, sending 3.6 million tons to Monticello. For more information, see October 16, 2017, article - Luminant to Close Two More Texas Coal-fired Power Plants.
According to a recent Department of Energy (DOE) report, between 2002 and 2016, 531 coal generating units representing about 59,000 MW of generation capacity retired from the U.S. generation fleet. The Energy Information Administration (EIA) reported that coal-fired power plants made up more than 80% of the 18,000 MW of capacity that was retired in 2015. The DOE report said about 12,700 MW of coal-fired generation was expected to retire through 2020.
Meanwhile, average U.S. quarterly metallurgical coal production increased from 14.1 million short tons in the second half of 2016 to 16.8 million short tons in the first half of 2017, driven by higher worldwide demand, particularly from China, Japan, and India, the EIA said on Tuesday. U.S. metallurgical coal exports to Asia increased as China, Japan and India looked to offset disruptions to their supply of Australian coal caused by Cyclone Debbie in April 2017. In addition, China's demand for metallurgical coal increased as its steel production reached record levels in June, according to the National Bureau of Statistics of China.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
