Coal production in the United States increased 3.8 percent in 2004 over the previous year, according to the Annual Coal Report 2004 from the Energy Information Administration. U.S. coal exports rose for the second consecutive year, while coal imports again increased to record levels.
The rebounding economy helped to drive up the demand for coal during the year. Total coal stocks declined as electric generators used their stockpiles to help meet increased demands and missed shipments. The average delivered price of coal increased in all domestic markets.
Production
U.S. coal production increased to 1,112 million short tons but remained below the record level of 1,128 million short tons in 2001. Production was hampered by recurring problems, including transportation, weather, environmental concerns, legal challenges, and global economics.In 2004, major railroads experienced record levels of commodity shipments leading to bottlenecks causing delays in coal deliveries to several utilities. Flooding on the major waterways, along with river lock repairs and sunken barges also contributed to the transportation problems. Four hurricanes caused flooding, disruptions in deliveries, off -line power plants, and obstacles for employees to get to mines in southeastern States.
Regions
Coal production in the Appalachian Region increased in 2004 by 14 million short tons, to end the year at 390 million short tons, an increase of 3.7 percent, but still below the 2002 level of 396 million short tons.West Virginia, the largest coal-producing State in the Appalachian Region and the second largest in the United States, increased 5.9 percent to 148 million short tons of production.
Total coal production in the Interior Region in 2004 was unchanged from the prior year.
Coal production in the Western Region increased in 2004 by 4.8 percent to a total of 575 million short tons, another record level for the region, which accounted for 51.7 percent of total U.S. coal production. Wyoming continued its dominance as the largest coal-producing State.
Consumption
Share of Electric Power Sector Net Generation
by Energy Source, 2003 and 2004
Source: Energy Information Administration.
The continuing economic recovery in 2004 pushed total U.S. coal consumption to a record level. Coal consumption increased 1 percent to 1,105 million short tons.The electric power sector accounted for almost 92 percent of coal consumption. Total generation in the electric power sector increased in 2004, but coal’s share of generation decreased by 2.1 percent, resulting in only an 11-million short-ton increase in coal consumed in that sector.
Coal use in other sectors declined by 0.7 percent to 89 million short tons. Coal consumption in the “other industrial” sector was almost the same in 2004 as in 2003, but decreased 2.4 percent in the coking coal sector.
Prices
The average open market f.o.b. (free on board) mine price increased 11.6 percent to $19.93 per ton in 2004, a price level not seen since 1993.Coal prices in the electric power sector increased only modestly because deliveries are mostly made under long-term contracts.
The largest price increase was in the coking coal sector. The tight specifications needed for coal to produce coke limit the availability of the coal. The delivered price of coal to U.S. coke plants increased by 21.5 percent to reach $61.50 per short ton in 2004.
Stocks
Total coal stocks at the end of 2004 were 154 million short tons, a decrease of 11.4 million short tons from the prior year.All of the decline was in the electric power sector, where coal stocks in the electric power sector dropped 12.2 percent as power facilities used their stockpiles to meet increasing demand for electricity.
Annual Coal Report 2004 contains statistics on coal production, productive capacity, recoverable reserves, employment, productivity, domestic markets, mine sales prices, and consumer prices. Data are broken out by State, region, sector, or other measure as appropriate
Annual Coal Report 2004 is available on the EIA Web site at http://eia.doe.gov/cneaf/coal/page/acr/acr_sum.html
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File last modified: November 18, 2005