In 2023, the United States produced 578 million short tons (MMst) of coal, a significant drop from the peak of coal production in 2008, which exceeded 1 billion short tons, according to the U.S. Energy Information Administration‘s latest Annual Coal Report. The decline in production has been consistent across all types of coal and continued into 2024. Key factors contributing to the drop include rising mining costs, stricter environmental regulations, and increased competition from renewable energy sources and natural gas for electricity generation.
Coal is categorized based on the depth of the deposits. Deeper coal deposits, exposed to more heat and pressure, tend to have higher carbon content, less moisture, and fewer impurities. The highest-ranked coal by carbon content is anthracite, followed by bituminous, subbituminous, and lignite.
Bituminous coal is primarily mined in the Appalachian and Illinois Basins, both located in the eastern United States. Subbituminous coal is mainly found in the western U.S., especially in the Powder River Basin of Wyoming and Montana. Lignite coal is produced in several parts of the Midwest, particularly in North Dakota and Texas.
Most coal mined in the U.S. is sold as thermal coal, which is burned in power plants to generate steam for electricity. Bituminous coal, especially from the Appalachian region, is also used in steel production due to its metallurgical properties. In 2023, the U.S. exported 51 million short tons of bituminous coal for use in steelmaking.
Subbituminous coal is mostly sold to coal-fired power plants across the U.S., with some exports to Asian countries. While subbituminous coal is cheaper to mine, its lower heating value makes transportation costs a significant challenge. Lignite coal is primarily sold to power plants located near the mines due to its low heat content and the economic benefit of reduced transportation costs.
The Annual Coal Report also includes data on mining productivity, reserves, prices, and other factors. More recent reports, including Quarterly and Weekly Coal Production Reports, show that U.S. coal production has continued to decline in 2024. The U.S. Energy Information Administration’s Short-Term Energy Outlook projects that coal production will drop further, from an estimated 512 million short tons in 2024 to 467 million short tons by 2026, as coal faces ongoing competition from natural gas and renewable energy sources in the electric power sector.
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