BAKU, Azerbaijan, December 26. US coal production is projected to dip significantly, reaching 486 million MMst in 2024, Trend reports.
According to the US Energy Information Administration Agency (EIA), this marks a decline of over 100 MMst from 2023 and represents the lowest annual U.S. coal production since the early 1960s.
The pronounced reduction in U.S. coal production aligns with a 10-percent decrease in consumption and a simultaneous 12-percent uptick in stocks.
While the administration sees exports compensating for the declining domestic consumption, with a notable 17-percent increase in 2023, the trend takes a turn in 2024 with a 7-percent decrease. This decline is primarily attributed to a 15-percent reduction in steam coal exports.
According to the EIA projections, the cost of coal for electric power plants is expected to gradually decline, reaching $2.41/MMBtu in December 2024 from $2.50 in January of the same year.
This trend is attributed to ongoing weak demand. In contrast, the cost of natural gas for electric power generation is projected to see a nearly 40-cent increase, reaching $3.83/MMBtu from January to December 2024, the EIA noted. As more renewable capacity comes online and Inflation Reduction Act policies reinforce zero-carbon generation, coal production is becoming increasingly less cost-competitive in power markets.