Coal Consumption Declines to Lowest Level Since 1984

By Editors of Power Engineering

The U.S. electric power sector consumed 677 million short tons of coal in 2016, down 35 percent from its peak in 2008 and the lowest level since 1984, the Energy Information Administration reported.

Power generation accounted for over 93 percent of all coal consumed in the United States. An estimated two third of that coal was shipped either completely or in part by railroad.

After rail, the next two most common means of shipping coal is via barge or truck. Truck shipments have decreased slightly to nine percent in 2016, while barge shipments increased to 13 percent.

The increase in barge traffic is due largely to the growth of coal produced in the Illinois Basin, which relies on shipments along the Ohio River and its tributaries. Truck shipments declined due to lower production in the Appalachian region, much of which supplied generating facilities a short distance from the mines.

The coast of coal transportation reached $41.64 per ton in 2016, down six percent from 2015. Transportation costs have accounted for 35 percent of the total cost of coal in recent years.

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