U.S. Coal Production, Consumption, and Exports Update

     U.S. coal production has dropped in recent years due to the retirement of coal-fired plants that use thermal coal. However, we still export between 7 and 10 million short tons per year of coal, both thermal coal and metallurgical coal, typically for steel production. Those export amounts are expected to continue through at least 2026, according to the EIA. Coal exports have been increasing since the lows during COVID-19 but have not quite reached the peaks seen in 2018. Even so, these exports remain not far off from all-time highs. The rise in coal production in 2021 and 2022 is due partially to rebound from the COVID lows but also to higher gas prices in 2022 from the Russian invasion of Ukraine. This caused a shift from gas to coal in the power sector that offset losses from retiring and underutilized coal plants.

Data Source: EIA

     U.S. coal consumption has dropped to less than half of what it was in 2010 and 2011. From an emissions perspective, this can be seen as a victory. However, we still need coal, especially on cold days when natural gas systems are maximized due to both gas heating needs and electricity needs. On the coldest day so far this year, coal provided 22.9% of the nation’s electricity needs.

Source: Statista

     As the following graph shows, Wyoming remains by far the biggest coal producer followed distantly by West Virginia with other states distantly behind West Virginia. It looks like these two states produce more coal than all the other states combined. 

Source: Statista

Addendum 

     The recent levying of 15% retaliatory tariffs by China on U.S. coal and LNG imports from the U.S. could change the trajectory of U.S. coal exports. Unlike the Canadian and Mexican tariffs, it seems less likely that these will be negotiated away. Chinese coal imports are forecast to increase in the next few years. They could prioritize cheaper sources for coal and LNG. It has been argued that the already high cost of LNG on the international market has caused China to favor coal over LNG. Now, they are being incentivized to favor non-American coal and LNG. According to one commentator:

"China coal demand is 16% HIGHER than 3 years ago, and seems to be on an elevated growth trajectory."

References:

U.S. coal exports reached a six-year record in June 2024. EIA. February 4, 2025. U.S. coal exports reached a six-year record in June 2024 - U.S. Energy Information Administration (EIA)