BAKU, Azerbaijan, December 26. US coal production is expected to go on with a decline in 2023, experiencing a 10-percent drop year-on-year, Trend reports.
According to the estimations made by the International Energy Agency (IEA), this decrease in production is only half of the reduction in consumption, attributable to domestic stockpiling efforts and increased exports.
Despite favorable conditions in the export market, coal production in the United States increased by merely 3 percent to 539 million tons in 2022. Ongoing disruptions in the supply chain and challenges in the labor market had a dampening effect on coal output, restricting the overall production growth.
According to the Energy Information Administration (EIA), stockpiles in 2023 are projected to reach approximately 47 million tons, predominantly stored at power plant sites. While many US coal plants operate under long-term contracts ensuring a steady supply, the actual coal-fired generation has fallen short of expectations, leading to a surplus of coal. The western region has disproportionately contributed to the production decline, with the West Elk mine in Colorado facing geological challenges and partial closures at the Lila Canyon mine in Utah, coupled with a longwall move at the Skyline mine, slowing down production.
During the forecast period, the IEA anticipates that the substantial decrease in coal-fired power generation will persist, exerting downward pressure on coal output and leading to reductions across all major mining regions. Over the next three years, the agency's projections indicate an annual reduction of nearly 11 percent, culminating in a total production of 346 million tons in 2026.