Coal Reserves
America is often referred to as the "Saudi Arabia of coal." The United States has the largest supply of coal reserves in the world. According to the BP Statistical Review of World Energy, over 27% of total world coal reserves exist in the U.S. Energy Information Administration (EIA) data indicates that the U.S. has over 275 billion short tons of recoverable reserves; enough to last for over 250 years at current use levels. Coal is used in almost every state to generate electricity and forecasts indicate that coal will continue to provide the majority of American electricity for the foreseeable future.
Coal Distribution in the U.S.: Source: Energy Information Administration
Electricity Generation
Coal currently supplies over 50% of all electricity generated in the U.S. The next largest source is nuclear (20%), followed by natural gas (18%).
U.S. Electricity Generation: Information Source: Energy Information Administration
Coal has historically played a significant role in providing American electricity, due to its abundance, its affordability and the fact that it is becoming increasingly clean as new, more efficient technology is used in combustion and for emissions control.
Comparing Energy Sources
According to the National Mining Association (NMA), coal accounts for one-third (1/3) of all primary energy production. Over the past 30 years, as energy demand has skyrocketed, coal use has increased by 195%.
Currently, nine out of every ten tons of coal produced in the U.S. is used in electricity generation. Coal, is also used in the production of chemicals, cement, paper, ceramics, a variety of metal products and even food preservatives and artificial sweeteners.
Reserve Life: Information Source: British Petroleum
Coal is the nation's most abundant fossil fuel.
Source: 2005 data from EIA and BP Statistical Review of World Energy. "Years" refers to years reserves are expected to last at current production levels.
What to Expect
Electricity Generation by Fuel: Source: Energy Information Administration
The Energy Information Administration (EIA) forecasts that coal production and use will continue to grow at a steady rate in the short-term. Expected demand in the U.S. will remain at around 300 million tons per year.
Longer-term, coal is expected to provide half of U.S. electricity through 2025. During that time, production and use are projected to continue to rise at 1.3% and 1.5% per year respectively. Overall, it is expected that coal prices will decline - mining and generation costs will decrease, while capital expenditures, planning, environmental and regulatory compliance costs will increase.
2005 EIA projections forecast an additional 87 gigawatts of new coal-fueled generation will be constructed by 2025. U.S. Dept. of Energy's Vision 21 program goals call for more, with 4.6 gigawatts of pulverized coal and 89.8 gigawatts of integrated gasification combined cycle (IGCC) generation by 2025.
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