During 2005, a record 1,125.5 million short tons of coal were consumed in the United States. The greatest demand for coal was by electricity generating plants that burn coal to produce electricity. Some 1,037.5 million short tons, 92 percent of the total, were used by the electric power sector to produce about half (49.7 percent) of all electricity generated. Each ton of coal consumed at an electric power plant produces about 2,000 kilowatt-hours of electricity. A pound of coal supplies enough electricity to light ten 100-watt bulbs for about an hour.

The second largest sector of coal demand was for industrial use, which amounted to 60.3 million short tons in 2005. Some industries that used coal included cement, chemicals, paper, and primary metals. Cement plants use about a ton of coal for each 3.5 tons of cement produced. Small amounts of coal are also used to manufacture a number of everyday products, such as photographic film base, carbon and graphite electrodes, varnishes, perfumes, dyes, plastics, paints, and inks.

U.S. coal imports set another record level in 2005. Total coal imports were 30.5 million short tons, an increase of 11.7 percent, or 3 million short tons. Although imports represent less than 3 percent of total U.S. coal consumption, they are a factor in the supply balance, particularly for the coastal electric power producers. As all coal prices did in 2005, the average price of imported coal increased in 2005 by 25 percent to $46.71 per short ton.

Colombia continued to dominate the U.S. coal import market, accounting for 21.2 million short tons, or 69.6 percent of all coal imports. This was an increase of 3.2 million short tons from the 2004 level. The average price of Colombian coal into the United States was $44.62 per short ton, an increase of 28.0 percent over 2004. Coal imports from Venezuela, the second largest supplier, decreased in 2005 by 0.7 million short tons, while the average price increased by 15.5 percent to $46.46 per short ton. Coal imports from Canada declined by 29.9 percent to 2.0 million short tons, while coal imports from Indonesia increased 13.2 percent to 2.5 million short tons in 2005. These four countries account for almost 96 percent of total U.S. coal imports.

U.S. coal exports increased for the third year in 2005, and were still slightly above the 2001 level. Total U.S. coal exports were 49.9 million short tons, an increase of 1.9 million short tons. While total coal exports were up 4 percent in 2005, the average price per short ton increased by 24 percent to $67.10 per short ton as the tightening world coal market combined with the declining value of the U.S. dollar sent prices to unprecedented highs.

Coal consumption in the non-electric power sector decreased in 2005, mainly due to the decline in the coking coal sector. Coal consumption at coke plants declined in 2005 by 1.0 percent. The decline in coal consumption at coke plants was in part caused by the tight world market for metallurgical coal. Increasing international demand for metallurgical coal pushed exports higher as increasing prices motivated producers to switch some of the coal to overseas markets. Imports of coke into the United States declined in 2005 by 48.6 percent to a total of 3.5 million short tons.

Coal used at coal synfuel plants in 2005, totaled 139.7 million short tons, slightly less than three times the amount used in 2001. Coal synfuel plants produce coal-based fuels such as briquettes, pellets, or extrusions, which are formed from fresh or recycled coal and binding materials.

Total coal stocks at the end of 2005 were 144.0 million short tons, a decrease of 10 million short tons from the prior year. Coal stocks held by producers and distributors declined by 6.5 million short tons. Industrial users, including coke plants, held a total of 8.2 million short tons at the end of 2005, 2.0 million short tons more than the level at the start of the year. Coal stocks in the electric power sector dropped for the third consecutive year in 2005, declining by 5.4 million short tons (5.1 percent), to end the year at 101.2 million short tons, as power facilities used their stockpiles to meet increasing demand for electricity.

Texas led all States in electric power coal consumption in 2005, using 101 million short tons. Indiana and Ohio were second and third, respectively. These three States accounted for over 21 percent of the total U.S. coal consumption for the year.

More information on this subject can be found in the following EIA publications: Annual Coal Report, Quarterly Coal Report, Annual Energy Review and Monthly Energy Review.