U.S. Coal Production Projected to Decrease by 25 Percent This Year: EIA

The U.S. Energy Information Administration expects coal production to fall by 25 percent to 530 million short tons this year from 2019 levels in its Short Term Outlook released on June 9. The projections are subject to uncertainty as mitigation and reopening efforts related to the COVID-19 pandemic continue to evolve, the agency said.

• Production in Appalachia are forecast to decline by 35 percent as metallurgical coal mines in the region have slowed production based on lower demand from global steel production and coking coal.
• The Western region production is expected decline by 25 percent, partly because of slowing demand for steam coal from key importers and a decline in U.S. coal-fired generation in 2020.
• Coal production will rise to 549 MMst in 2021 because of forecast increase in natural gas prices and growing demand for U.S. exports.
• Coal’s forecast share of power generation is predicted to drop from 24 percent in 2019 to 17 percent in 2020 and then rise to 20 percent in 2021.