U.S. Coal Supply and Demand: 2008 Review
by
Fred Freme
U.S. Energy Information Administration

Overview
Coal production in the United States in 2008 reached
a record level of 1,171.5 million short tons according
to preliminary data from the Energy Information
Administration (Table 1), an increase of 2.2 percent,
or 24.8 million short tons above the 2007 level and
8.7 million short tons above the prior record level set
in 2006. Although coal production was higher in
2008, U.S. total coal consumption decreased in all
sectors for the year. Coal consumption in the electric
power sector in 2008 was lower by 0.3 percent, while
coking coal consumption decreased by 2.8 percent
and the other industrial sector declined by 3.7
percent. The commercial and institutional sector
(which prior to 2008 had been called ‘residential and
commercial’), the smallest of all the coal-consuming
sectors, declined by 0.6 percent in 2008. (Note: All
percentage change calculations are done at the shorttons level.) U.S. coal exports were significantly
higher in 2008, while coal imports decreased during
the year. Total coal stocks increased in 2008, as some
consumers added to their stockpiles. The coal synfuel
industry, which grew throughout most of this decade,
disappeared from the scene due to the expiration of
the available federal tax credits at the end of 2007.
The decline in coal consumption during the year was
the consequence of slowing domestic economic
growth, particularly in the latter half of the year,
combined with the weather in 2008, resulting in
lower demand for electricity. Preliminary data show
that total generation in the electric power sector
(electric utilities and independent power producers,
including useful thermal output) in the U.S.
decreased in 2008. Coal-based generation also
decreased, resulting in a 3.5 million short ton drop in
coal consumed in the electric power sector. Coal use
in the non-electricity sector decreased by 3.3 percent
to a level of 80.1 million short tons.

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The international coal markets in 2008 were the
driving force behind the increase in U.S. coal
production. U.S. coal exports increased to levels not
seen since the 1980’s while coal imports declined.
U.S. coal exports totaled 81.5 million short tons, an
increase of 22.4 million short tons over 2007. Coal
imports in 2008 ended the year at 34.2 million short
tons, 2.1 million short tons below 2007.
Coal prices increased in 2008, driven, in large part,
by the international markets where U.S. coal was in
demand. Another factor that affected coal prices was
the escalating delivery costs for users due to the
growing fuel surcharges added by transportation
companies in response to the unprecedented rise in
oil prices experienced during the first half of the year.
In the domestic markets in 2008, the electric utility
price-per-short-ton increase was 14.3 percent, while
the increase was 18.7 percent for independent power
producers. Coking coal prices had the greatest
increase domestically, climbing by 24.3 percent,
while the price for the other industrial sector
increased by 16.6 percent in 2008. Coal prices in the
international markets had the largest percentage
increase of all. The average price per ton of export
coal, measured in free alongside ship (f.a.s.) value,
grew by 39.0 percent in 2008, while the price of coal
imported into the U.S., measured by the customs
import value (c.i.v.), rose by 25.6 percent.

Production
U.S. coal production grew in 2008 by 2.2 percent to
reach a record level of 1,171.5 million short tons
(Figure 1 and Table 1), 24.8 million short tons more
than the 2007 production total. Although total U.S.
coal production was higher in 2008, only two of the
three coal-producing regions had increases in coal
production while the other was about level. Exclusive
of refuse production, the Appalachian and Western
Regions had an increase in their production levels in

 Table 1. U.S. Coal Supply, Disposition, and Prices, 2004 - 2008
(Million Short Tons and Nominal Dollars per Short Ton)
Item

2004

2005

2006

2007

2008

389.9
146.0
575.2
1.0
1,112.1

396.7
149.2
585.0
0.7
1,131.5

391.2
151.4
619.4
0.8
1,162.8

377.8
146.7
621.0
1.2
1,146.6

389.8
146.7
633.6
1.4
1,171.5

1,016.3
23.7
62.2
5.1
1,107.3

1,037.5
23.4
60.3
4.7
1,126.0

1,026.6
23.0
59.5
3.2
1,112.3

1,045.1
22.7
56.6
3.5
1,128.0

1,041.6
22.1
54.5
3.5
1,121.7

106.7
1.3
4.8
41.2
154.0

101.1
2.6
5.6
35.0
144.3

141.0
2.9
6.5
36.5
186.9

151.2
1.9
5.6
34.0
192.8

163.1
2.3
6.0
27.3
0.5
199.2

48.0
21.2
26.8
27.3
25.1
2.2
20.7

49.9
21.3
28.7
30.5
28.7
1.8
19.5

49.6
22.1
27.5
36.2
34.6
1.7
13.4

59.2
27.0
32.2
36.3
34.7
1.7
22.8

81.5
39.0
42.5
34.2
32.5
1.7
47.3

$27.30
$27.27
$61.50
$39.30

$31.22
$30.39
$83.79
$47.63

$34.26
$33.04
$92.87
$51.67

$36.06
$33.11
$94.97
$54.42

$41.23
$39.31
$118.09
$63.44

Exports
Steam Coal
Metallurgical Coal
Average Customs Import Value (c.i.v.) Price

$54.11
$42.03
$63.63

$67.10
$47.64
$81.56

$70.93
$46.25
$90.81

$70.25
$47.90
$88.99

$97.68
$57.35
$134.62

Imports
Steam Coal
Metallurgical Coal

$37.52
$36.06
$54.27

$46.71
$43.35
$101.88

$49.10
$46.15
$109.36

$47.64
$45.31
$96.05

$59.83
$56.75
$117.18

Production By Region
Appalachia
Interior
Western
Refuse Recovery
Total
Consumption By Sector
Electric Power
Coke Plants
Other Industrial Plants
1
Residential/Commercial Users
Total
Year-End Coal Stocks
Electric Power
Coke Plants
Other Industrial Plants
Producers/Distributors
Commercial/Institutional
Total
U.S. Coal Trade
Exports
Steam Coal
Metallurgical Coal
Imports
Steam Coal
Metallurgical Coal
Net Exports
Average Prices
Domestic
Average Delivered Price
Electric Utilities
Independent Power Producers
Coke Plants
Other Industrial Plants
International
Average Free Alongside Ship (f.a.s.) Price

1 The sector that was titled 'Residential and Commercial' has been renamed as 'Commercial and Institutional.'.
Notes: Totals may not equal sum of components due to independent rounding. Sum of net exports, stock changes, and consumption may not
equal production, primarily because the supply and disposition data are obtained from different surveys.
Sources: Production, consumption, stocks, and prices: Energy Information Administration, Quarterly Coal Report, October-December 2006,
DOE/EIA-0121(2006/Q4) (Washington, DC, March 2007); Annual Coal Report 2005, DOE/EIA-0584(2005) (Washington, DC, October 2006);
Annual Coal Report 2007, DOE/EIA-0584(2007) (Washington, DC, January 2009); and Electric Power Monthly, March 2009,DOE/EIA0226(2009/03) (Washington DC, March 2009). Exports and imports: U.S. Department of Commerce, Bureau of the Census, "Monthly Report EM
545" and "Monthly Report IM 145."

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 Figure 1. Coal Production by Coal-Producing Region, 2008
(Million Short Tons and Percent Change from 2007)
Regional Totals do not include refuse recovery
U.S. Total: 1,171.5 Million Short Tons (2.2%)

Western
633.6
(2.0%)

Interior
146.7
(0.0%)

Appalachian
389.8
(3.2%)

Source: Energy Information Administration, Quarterly Coal Report, October-December 2008, DOE/EIA-0121(2008/Q4) (Washington, DC, April 2009).

2008 of 3.2 percent and 2.0 percent respectively,
while the Interior Region remained essentially
unchanged (Figure 2 and Table 2). In the amount of
tons of coal produced, the increase in the
Appalachian Region production was 12.0 million
short tons, while the increase in the Western Region
production in 2008 was 12.6 million short tons. Coal
production in the Interior Region increased by only
57 thousand short tons.

International demand for metallurgical coal, which is
primarily produced in the central and southern
portions of the Appalachian Region, helped to push
several of the States to higher production totals for
the year. Four of the States in the Appalachian
Region (Alabama, East Kentucky, Ohio, and West
Virginia) had an increase of over a million short tons
in 2008, more than offsetting the two States
(Tennessee and Virginia) that had a decline in
production for the year.

Appalachian Region

West Virginia, the largest coal-producing State in the
Appalachian Region and the second largest in the
U.S., had an increase in total coal production of 2.9
percent in 2008 to end the year with 158.0 million
short tons of production, 4.5 million short tons above
the 2007 level. Even though there were large declines
in production at several mines in the state due to
either production related issues or the idling or
suspension of production totaling a combined drop of

Coal production in the Appalachian Region reversed
a two-year declining trend and ended 2008 at 389.8
million short tons, an increase of 3.2 percent, or 12.0
million short tons. The growth in 2008 in coal
production in the Appalachian Region was primarily
driven by the large increase in U.S. coal exports,
which are predominantly produced in this region.
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 Figure 2. Coal Production by Region, 1999-2008
(Million Short Tons)

Mining’s Snyder mine had an increase of 0.5 million
short tons.

Regional totals do not include refuse recovery

Eastern Kentucky produced 89.9 million short tons of
coal in 2008, an increase of 3.2 percent or 2.8 million
short tons above the 2007 level. Although there were
16 mines in Eastern Kentucky that had a 2008
production increase of at least a quarter-of-a-million
short tons, there were also 16 mines that had a
production decrease of at least a quarter-of-a-million
short tons. The primary reason that total coal
production in Eastern Kentucky was higher for the
year was the fact that there were 141 mines that had
production that were either new in 2008 or did not
produce coal in 2007 and these mines accounted for
9.1 million short tons, more than enough to offset the
90 mines that had produced coal in 2007 but were
either closed or idled for 2008.

1400
1200
1000

U.S.

800

Western
600
400

Appalachian

Interior

200

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

0

Coal production in Alabama in 2008 totaled 20.6
million short tons, 6.6 percent higher than the 2007
level. Although production levels decreased at
several mines in the State, with the largest being a
drop of 0.5 million short tons of Twin Pines Coal
Company’s Mine No. 2 which suspended production
after the first quarter of the year, increases in coal
production by several other mines along with
production from six new mines resulted in a coal
production level that was just slightly below the 2005
level. The largest portion of the 1.3 million short ton
increase for 2008 was due to the increase in coal
production by Drummond Company’s Shoal Creek
mine, which produced 2.1 million short tons, 0.8
million short tons more than it produced in 2007.

Sources: Energy Information Administration, Quarterly Coal Report,
October-December 2008, DOE/EIA-0121(2008/Q4) (Washington, DC, April
2009); Coal Industry Annual, DOE/EIA-0584, various issues; Annual Coal
Report, DOE/EIA-0584, various issues.

5.1 million short tons, the increases in production at
existing mines or the start-up of new mines more than
offset the those decreases. The idling or suspension
of production by Massey Energy’s No. 130 and
Laurel Creek mines, Patriot Coal’s Europa mine, and
Appalachian Fuels Big Creek No. 2 surface mine
accounted for 2.7 million short tons of the decrease
while production issues [movement of longwalls,
geological impairments, or equipment issues] at
ANR’s Alma mine, Patriot Coal’s Samples mine,
Massey Energy’s Black Castle mine, and Frasure
Creek’s Mine No. 7 accounted for 2.4 million short
tons of the decrease. Major increases in coal
production of at least 0.5 million short tons in 2008
experienced by Arch Coal’s Mountaineer II mine,
Massey Energy’s Republic mine, Brody Mining’s
Mine No. 1, Cleveland-Cliff’s Pinnacle mine, Eagle
Creek Mining’s MT-11 Surface mine, Hanover
Resources’ Four Mile Mine No. 2, and Patriot Coal’s
American Eagle mine added over 6.7 million short
tons to West Virginia’s total.

Pennsylvania produced 65.3 million short tons, an
increase of 0.4 percent from 2007 or 0.3 million short
tons. Coal production in Maryland in 2008 totaled 2.8
million short tons, an increase of 0.5 million short
tons. Tennessee, one of the two States in the
Appalachian Region to have a decrease in production
in 2008, produced a total of 2.3 million short tons,
down by 0.3 million short tons. Coal production in
Virginia decreased in 2008 by 0.8 million short tons
to a total of 24.6 million short tons, a decline of 3.0
percent. The decrease in coal production in Virginia
was primarily a result of the abandonment of
Paramount Coal’s Lovers Gap No. 2 mine and Exeter
Coal’s Mine No. 1, combined with the suspension of
production at Arch Coal’s Pardee mine in the latter
half of 2007.

Coal production in Ohio in 2008 increased by 3.7
million short tons, or 16.3 percent to end the year at
26.3 million short tons, the highest level in a decade.
The increase in production was primarily a result of
higher production levels at four mines in the State.
Ohio American Energy’s Salt Run mine had an
increase of 1.4 million short tons in 2008, its first full
year of production. Ohio Valley Coal’s Powhatan No.
6 mine had an increase of 1.2 million short tons in
2008, while Buckingham Coal’s Mine No. 6 had an
increase of 0.6 million short tons and Oxford

Interior Region
Coal production in the Interior Region in 2008 was
146.7 million short tons, comparable to the 2007
production level. While the total coal production for
4 of 14

 Table 2. U.S. Coal Production by Coal-Producing Region and State, 2004 - 2008
(Million Short Tons)
Coal-Producing Region and State
Appalachia Total
Alabama
Kentucky, Eastern
Maryland
Ohio
Pennsylvania Total
Anthracite
Bituminous
Tennessee
Virginia
West Virginia Total
Northern
Southern
Interior Total
Arkansas
Illinois
Indiana
Kansas
Kentucky, Western
Louisiana
Mississippi
Missouri
Oklahoma
Texas
Western Total
Alaska
Arizona
Colorado
Montana
New Mexico
North Dakota
Utah
Washington
Wyoming
Refuse Recovery
U.S. Total

2004
389.9
22.3
90.9
5.2
23.2
66.0
1.7
64.3
2.9
31.4
148.0
40.6
107.3
146.0
*
31.9
35.1
0.1
23.4
3.8
3.6
0.6
1.8
45.9
575.2
1.5
12.7
39.9
40.0
27.2
29.9
21.7
5.7
396.5
1.0
1,112.1

2005
396.7
21.3
93.3
5.2
24.7
67.5
1.6
65.8
3.2
27.7
153.6
42.6
111.0
149.2
*
32.0
34.5
0.2
26.4
4.2
3.6
0.6
1.9
45.9
585.0
1.5
12.1
38.5
40.4
28.5
30.0
24.5
5.3
404.3
0.7
1,131.5

2006
391.2
18.8
93.6
5.1
22.7
66.0
1.5
64.5
2.8
29.7
152.4
42.4
110.0
151.4
*
32.7
35.1
0.4
27.2
4.1
3.8
0.4
2.0
45.5
619.4
1.4
8.2
36.3
41.8
25.9
30.4
26.0
2.6
446.7
0.8
1,162.7

2007
377.8
19.3
87.1
2.3
22.6
65.0
1.6
63.5
2.7
25.3
153.5
42.2
111.3
146.7
0.1
32.4
35.0
0.4
28.2
3.1
3.5
0.2
1.6
41.9
621.0
1.3
8.0
36.4
43.4
24.5
29.6
24.3
453.6
1.2
1,146.6

2008
389.8
20.6
89.9
2.8
26.3
65.3
1.7
63.6
2.3
24.6
158.0
40.9
117.1
146.7
0.1
33.0
36.2
0.2
30.0
3.8
2.8
0.2
1.4
39.0
633.6
1.5
8.0
32.0
44.8
25.6
29.6
24.4
467.6
1.4
1,171.5

Percent Change
2007 - 2008
3.2
6.6
3.2
22.0
16.3
0.4
8.7
0.2
-12.0
-3.0
2.9
-3.1
5.2
0.0
-16.3
1.6
3.3
-45.5
6.3
22.9
-19.9
4.6
-17.7
-7.0
2.0
11.6
0.5
-12.0
3.2
4.9
0.1
0.2
0.0
3.1
17.9
2.2

* Less than 50 thousand short tons.
Source: Energy Information Administration, Annual Coal Report 2005, DOE/EIA-0584(2005)(Washington, DC, October 2006);
Energy Information Administration, Annual Coal Report 2007, DOE/EIA-0584(2007)(Washington, DC, January 2009); and
Quarterly Coal Report, October-December 2008, DOE/EIA-0121(2008/Q4)(Washington, DC, April 2009).

the region was basically unchanged, that was not the
case when it came to the respective States’
production levels in 2008. Three of the four largest
coal-producing States (Indiana, West Kentucky, and
Texas) in the region had major changes in their
production levels in 2008 when compared to 2007.
Texas, the largest coal-producing State in the region,
had a decrease in coal production of 2.9 million short
tons to end the year at 39.0 million short tons, a level

not seen since 1983. Texas coal is lignite, the lowest
rank of coal with the lowest amount of energy (or
Btus) and the vast majority of the coal is used in the
electric power sector, primarily at mine-mouth
facilities. The amount of Texas-produced lignite
consumed by the electric power sector in the State
dropped by 7.9 percent while the total amount of coal
consumed in the electric power sector in Texas
declined only slightly, by 1.3 percent. The
5 of 14

 discrepancy is due to the fact that the amount of
subbituminous coal consumed for power production
increased by 4.3 percent. Declines in coal production
by three Texas mines accounted for most drop in
2008 production. The three mines are Luminant
Mining’s Beckville Strip, Winfield South Strip, and
Big Brown Strip down by 1.1, 0.7, and 0.6 million
short tons, respectively.

Wyoming, the largest coal-producing State in the
nation, a position it has held for two decades,
continues to dominate the U.S. coal production
picture. In 2008, Wyoming produced 467.6 million
short tons of coal, an increase of 3.1 percent, or 14.1
million short tons for the year, another record year.
Wyoming has dominated U.S. coal production since
1995 when it first accounted for more than onequarter of total U.S. production. Examples of how
much Wyoming dominates the U.S. coal supply
include that for 2008, it accounted for 73.8 percent of
the Western Region production total; was 77.8
million short tons more than the entire Appalachian
Region; was more than three times the Interior
Region; and was almost 40 percent of the total U.S.
coal production for the year. Also, if all of the coalproducing States in 2008 were ranked by descending
total production levels, Wyoming produced more
than the next six largest coal-producing States (West
Virginia, Kentucky, Pennsylvania, Montana, Texas,
and Indiana), besting their combined production by
4.5 million short tons. Wyoming also produced 261.3
million short tons more coal than the summation of
the States ranked 8th through 25th. Although seven
of the twenty mines in Wyoming had decreases in
coal production in 2008, the increased production
levels at the rest of the mines pushed the state to a
new record level for the year. Peabody’s North
Antelope Rochelle mine was again the largest coal
mine in Wyoming and the U.S. in 2008, producing a
total of 97.6 million short tons, an increase of 6.1
million short tons or 6.6 percent. This one mine
produced more coal than the combined total of the
other coal-producing States ranked 13th through 25th
in 2008. Although there were increases of over 2
million short tons experienced by three other mines
in Wyoming, one mine, Foundation Coal’s Eagle
Butte mine, had a decrease in production of 4.5
million short tons, a decline of 18.2 percent, to end
the year at 20.4 million short tons.

Western Kentucky had the largest increase in coal
production in the Interior Region in 2008, increasing
by 1.8 million short tons to reach a total of 30.0
million short tons. This is the fourth year in a row
that Western Kentucky experienced growth in coal
production and the 2008 increase of 6.3 percent was
primarily a result of the growth in production by one
mine and the opening of a new mine in the second
quarter of the year. The increase of 1.4 million short
tons experienced by Hopkins County Coal’s Elk
Creek mine and the opening of Armstrong Coal’s
Midway mine which produced 0.8 million short tons
in 2008 more than offset the production declines
experienced by several other mines during the year.
Indiana produced a total of 36.2 million short tons in
2008, an increase of 3.3 percent, or 1.2 million short
tons. Although there was a decrease of 0.5 million
short tons by United Minerals’ Somerville East mine,
an increase in production of 0.9 million short tons by
Sunrise Coal’s Carlisle mine and an increase of 0.6
million short tons by both Gibson County Coal’s
Gibson mine and Black Beauty Coal’s Francisco
mine lead to Indiana’s highest production level since
2001. Illinois is the other major coal-producing State
in the Interior Region, and it had an increase of 1.6
percent to end the year at a total of 33.0 million short
tons. The other States in the Interior Region
(Arkansas, Kansas, Louisiana, Mississippi, Missouri,
and Oklahoma), which together produced 8.4 million
short tons of coal, accounted for a total of 5.7 percent
of the entire region’s production in 2008. Of these
States, only Louisiana and Missouri had increases in
their coal production from their prior year levels.

In 2008, Montana, the second largest coal-producing
State in the Western Region, produced a total of 44.8
million short tons, an increase of 3.2 percent.
Although there were decreases in production at half
of the six mines in the State, the increase in coal
production at Spring Creek Coal’s Spring Creek mine
of 2.2 million short tons in 2008 to reach a total of
17.9 million short tons, more than offset the declines.
Colorado, the third largest coal-producing State in the
Western Region, was the only State in the region to
have a decrease in coal production for 2008.

Western Region
The Western Region is the largest coal-producing
region in the U.S., and in 2008 coal production rose
by 2.0 percent to reach a total of 633.6 million short
tons, 54 percent of total U.S. production for the year.
The increase of 12.6 million short tons resulted in
another record level for the region, the fifth year in a
row. Although there was a record level of coal
production in 2008, one State in the Western Region
(Colorado) had a lower production level than the
previous year.

Colorado ended the year with a total of 32.0 million
short tons, a decline of 12.0 percent, or 4.4 million
short tons. Although eight of the twelve mines in the
State had lower coal production in 2008, the majority
6 of 14

 of the decrease in Colorado’s total production was
accounted for by two mines. Bowie Resources’
Bowie No. 2 mine had a decrease of 2.6 million short
tons to end the year at 2.9 million short tons, and
Arch Coal’s West Elk mine had a decrease of 1.0
million short tons to end the year at 5.9 million short
tons. Both of these are underground longwall mines
and they experienced production problems relating to
geologic faults that impacted production due to
relocating the longwall mining systems.

declined slightly in 2008, dropping by 0.6 percent
from the 2007 level. Total U.S. coal consumption
was 1,121.7 million short tons, a decrease of 6.3
million short tons, with all of the coal-consuming
sectors having lower consumption for the year.
Although all sectors had declines, the electric power
sector (electric utilities and independent power
producers), which consumes almost 93 percent of all
coal in the U.S., is the overriding force for
determining total domestic coal consumption.

Total coal production in the other States in the
Western Region (Alaska, Arizona, New Mexico,
North Dakota, and Utah) had increases in their
respective production levels in 2008. The increases
ranged in percentages from a low of 0.1 percent in
North Dakota to a high of 11.6 percent in Alaska,
while the tonnage increases ranged from a low of 21
thousand short tons in North Dakota to a high of 1.2
million short tons in New Mexico.

Coal consumption in the electric power sector
decreased by 0.3 percent or 3.5 million short tons to
end 2008 at 1,041.6 million short tons (Figure 3),
while coal-based electricity generation in kilowatt
hours decreased at a slightly higher rate of 1.1
percent, reflecting increasing volumes of lower Btu
western coals (subbituminous and lignite) to generate
electricity (Figure 4.) (Note: Graph shows both tons
of coal consumed in the electric power sector and
coal-generated kilowatt hours indexed to 1990, i.e.,
values for the data were set to 1 for 1990. 1990 was
the year that the Clean Air Act Amendments were
passed.) Nationally, total generation in the electric
power sector from all fuels declined in 2008 by 0.9

Consumption
Preliminary data shows that total coal consumption

Figure 3. Electric Power Sector Consumption of Coal by Census Region, 2008

(Million Short Tons and Percent Change from 2007)

U.S. Total = 1,041.6 (-0.3%)
Pacific
Contiguous
9.2 (-0.6%)

New England
8.5 (-4.0%)

Mountain
116.3 (0.9%)

West North Central
149.8 (1.5%)

East
North Central
239.2 (0.9%)

Pacific
Non-contiguous
1.3 (6.6%)
West South Central
156.1 (1.0%)

South Atlantic
180.4 (-2.9%)

East
South Central
114.3 (-1.1%)

Source: Energy Information Administration, Form EIA-923, "Power Plant Operations Report."

7 of 14

Middle Atlantic
66.6 (-4.9%)

 Figure 4. Comparison of Coal Consumption to Coal
Generation (indexed to 1990)

of the National Oceanic and Atmospheric
Administration (NOAA), heating degree-days in
2008 were lower for the country as a whole than the
normal by 0.6 percent. Also, the summer weather in
2008 was not as hot over most parts of the country as
it was in 2007, which lead to a decrease in cooling
degree-days of 11.1 percent, resulting in less need for
electricity to run air-conditioners and lower demand
for generation.

1.40
1.35
1.30
Coal Consumption
1.25
1.20

Of the nine Census Divisions, coal is a minor
component (less than 20 percent) in the fuel mix for
electricity generation in two divisions, New England
and Pacific, and a major component (more than 50
percent) in five divisions, East North Central, West
North Central, South Atlantic, East South Central,
and Mountain. In the other two divisions, coal is one
of two main fuel sources for the electric power
sector. In the Middle Atlantic, coal competes with
nuclear power for dominance, while in the West
South Central coal competes with natural gas.

1.15
Coal Generation
1.10
1.05
1.00
1990

1993

1996

1999

2002

2005

2008

Sources: 1990-1997—EIA, Form EIA-759, "Monthly Power Plant Report," and
Form EIA-867, Annual Nonutility Power Producer Report. 1998-2000—EIA,
Form EIA-759, "Monthly Power Plant Report," and Form EIA-860B, "Annual
Electric Generator Report—Nonutility." 2001-2003—EIA, Form EIA-906, "Power
Plant Report." 2004-2007—EIA, Form EIA-906, "Power Plant Report," and
Form-920, "Combined Heat and Power Plant Report" 2008 — EIA, Form 923,
"Power Plant Operations Report."

In 2008, three of the nine Census Divisions had an
increase in total electricity generation, while five of the
nine had increases in coal-based generation. However,
only four of the five Census Divisions that had
increased coal-based generation, had increases in coal
consumption in 2008 while the other remained at the
same level. The decreases in coal consumption by the
four Census Divisions more than offset those that had
increases. The decline in total U.S. coal consumption for
2008 in the electric power sector was primarily a result
of lower consumption in two of the Census Divisions,
the South Atlantic and the Middle Atlantic.

percent with losses in electricity generation by all
sources except the hydroelectric and nuclear sectors
in the U.S. (Figure 5). The increase of 1.1 percent in
electricity generation by hydroelectric facilities in the
country was a direct result of the improved water
levels experienced across all regions during the year.
Nuclear power generation increased slightly in 2008
by 0.3 percent. The decreases in electric generation in
2008 by other fuel categories were 0.6 percent for the
petroleum and other sources1 category and 2.0
percent for natural gas.

Figure 5. Share of Electric Power Sector Net Generation
by Energy Source, 2007 vs. 2008
60.0
49.9 49.8
50.0
2007

40.0
Percent

Total electricity generation in the U.S. is primarily
driven by two factors: economic growth and weather
(as measured by heating and cooling degree-days).
Economic growth slowed during the first three
quarters of the year and declined during the fourth
quarter resulting in the Gross Domestic Product
(GDP) of the U.S. for 2008 increasing by only 1.3
percent for the year, down from the 2.0 percent
growth experienced in 2007. The weather was also a
factor in the decline of total electricity generation in
2008. Although the winter weather across a large
portion of the country was colder than it was in
2007, it was still not as cold as the normal 30-year
average. According to preliminary data from the
National Weather Service Climate Prediction Center

2008

30.0
20.3 20.0

20.1 20.3
20.0

10.0

6.0 6.4

3.7 3.5

0.0

1

This category includes electric generation from
petroleum liquids, petroleum coke, other gases, wood
and wood wastes, municipal solid wastes, and
agriculture products, other biomass, geothermal, solar
thermal, solar photovoltaic, wind and miscellaneous
technologies.

Nuclear

Hydro

Gas

Petroleum &
Other

Coal

Source: Energy Information Administration, Form EIA-906, "Power Plant
Report" and Form EIA-923, "Power Plant Operations Report."

8 of 14

 The South Atlantic Census Division usually accounts
for about 20 percent of total U.S. electricity
generation, while the Middle Atlantic Census
Division usually accounts for about 10 percent of the
total. Coal is the primary fuel for electricity
generation in the South Atlantic while in the Middle
Atlantic coal competes with nuclear power for the
largest share of total generation. In 2008 total
generation in the South Atlantic Census Division
decreased by 3.5 percent (Table 3) while coal-based
generation decreased by 4.4 percent. The decline in
coal-based electricity generation in 2008 in the South
Atlantic resulted in a decrease in coal consumption of
5.5 million short tons, down 2.9 percent to end the
year at 180.4 million short tons. Both nuclear and
hydroelectric generation increased in the South
Atlantic Census Division in 2008, with the increase
in nuclear generation of only 0.9 percent. Even
though hydroelectric generation increased by 4.7
percent for the year, it still only accounted for
slightly more than 1 percent of total generation for
the division. In 2008 total generation in the Middle
Atlantic Census Division decreased by 2.0 percent,
while both nuclear and hydroelectric generation
increased for the year. The increase in the Middle
Atlantic Census Division for hydroelectric generation
was 7.5 percent while the increase in nuclear
generation was 1.4 percent. Coal-based generation
declined in 2008 by 4.9 percent and that resulted in a
decrease in coal consumption of 3.4 million short
tons, down 4.9 percent to end the year at 66.6 million
short tons.

Table 3. Electric Power Sector Net Generation,
2007-2008
(Million Kilowatthours)
2007
Census Division
New England
Coal
19,791
Total
126,059
Middle Atlantic
Coal
152,607
Total
428,648
East North Central
Coal
456,905
Total
656,142
West North Central
Coal
230,004
Total
311,406
South Atlantic
Coal
438,823
Total
815,153
East South Central
Coal
244,504
Total
376,578
West South Central
Coal
229,930
Total
558,246
Mountain
Coal
209,121
Total
363,605
Pacific
Coal
16,706
Total
369,508
U.S. Total
Coal
1,998,391
Total
4,005,345

In the East South Central Census Division coal is the
dominant fuel for generation, typically accounting for
just under two-thirds of total generation in a year. In
2008 total generation in the East South Central
Division decreased slightly by 0.2 percent, while
coal-based generation declined by 2.2 percent. Both
nuclear and hydroelectric generation increased in the
East South Central in 2008. The decline in coal
generation in the division in 2008 resulted in a
decrease of 1.2 million short tons in the East South
Central Census Division to a level of 114.3 million
short tons.

2008

Percent
Change

18,768
119,232

-5.2
-5.4

145,095
420,274

-4.9
-2.0

457,608
650,943

0.2
-0.8

233,955
315,276

1.7
1.2

419,507
786,354

-4.4
-3.5

239,053
375,887

-2.2
-0.2

233,089
562,971

1.4
0.8

212,298
374,985

1.5
3.1

16,801
365,330

0.6
-1.1

1,976,174
3,971,252

-1.1
-0.9

Source: Energy Information Administration, Form EIA-906,
"Power Plant Report" and Form EIA-923, "Power Plant
Operations Report."

million short tons, an increase of 1.1 million short
tons. In the West South Central Census Division coal
competes with natural gas as the primary source for
electric power generation, both accounting for about
40 percent of the Division’s generation. Total
generation in 2008 in the electric power sector in the
West South Central Census Division grew by 0.8
percent, while coal-based generation grew at a higher
rate of 1.4 percent. Declines in generation were
experienced by both natural gas and nuclear in the
division. Total coal consumption in 2008 for the
electric power sector in the West South Central
Census Division increased by 1.5 million short tons,
or 1.0 percent, ending the year at a total of 156.1
million short tons.

Over half of the electricity generated in the Mountain
Census Division is derived from coal. In 2008 total
generation in the Mountain Census Division
increased by 3.1 percent, with increases experienced
by all generation categories. However, coal-based
generation increased the least, growing by 1.5 percent
with the increases in the other sources ranging from
1.7 percent for natural gas to 39.5 percent for
petroleum and other sources. Total coal consumption
in the electric power sector in the Mountain Census
Division increased in 2008, ending the year at 116.3
9 of 14

 In the East North Census Division, coal usually
accounts for about 70 percent of total generation and
although total generation in the division decreased in
2008 by 0.8 percent, coal-based generation increased
by 0.2 percent. The only fuel source to have a
decrease in generation for the division in 2008 was
natural gas, declining by 30.2 percent. For 2008, total
coal consumption in the East North Central Census
Division was 239.2 million short tons, an increase in
coal consumption of 2.1 million short tons, or 0.9
percent, making it the largest electric power coalconsuming division in the U.S. The dichotomy of
slightly lower total generation with increased coal
consumption in the East North Central Census
Division is a result of an increasing share of lower
Btu coal being used by the electric generating plants
in the division.
In the West North Central Census Division coal is the
dominant source for electric power generation
accounting for about three-fourths of the Division’s
generation. Total generation in 2008 in the electric
power sector in the West North Central Census
Division grew by 1.2 percent, while coal-based
generation grew by 1.7 percent. Total coal
consumption in 2008 for the electric power sector in
the West North Central Census Division increased by
2.2 million short tons, or 1.5 percent, ending the year
at a total of 149.8 million short tons.

Figure 6. Coal Consumption by Sector, 1999-2008
(Million Short Tons)
1200

1000

800

Electric Pow er

600

Coke Plants
Other Industrial
Residential & Commercial

400

200

0
1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Source: Energy Information Administration, Monthly Energy Review, March
2009, DOE/EIA-0035(2009/03) (Washington, DC, March 2009).

Although the GDP grew in 2008 by 1.3 percent, the
economic growth did not extend into the
manufacturing sector, and as a result, coal
consumption in the other industrial sector declined by
2.1 million short tons to end the year at 54.5 million
short tons. Within the manufacturing economic sector
of the North American Industry Classification
System (NAICS) most of the manufacturing
subsectors showed lower coal consumption for 2008.
The only major coal-consuming manufacturing
subsector to have an increase in consumption was the
paper sector and it had only a slight increase in coal
consumption. However, the decrease in coal
consumption in 2008 in the other industrial sector
was primarily a result of the large decrease in the
nonmetallic mineral products segment, a decline of
1.1 million short tons. Also contributing to the
overall decline in consumption for the other industrial
sector was the decrease of 0.4 million short tons by
the primary metal manufacturing segment. Coal
consumption in the commercial and institutional
sector2 decreased slightly in 2008, ending the year at
3.5 million short tons.

Coal accounts for less than one-sixth of total
generation in the New England Census Division and
in 2008 total coal consumption for electricity
generation decreased by 0.4 million short tons,
ending the year at a total of 8.5 million short tons.
Coal accounts for less than five percent of total
generation in the Pacific Census Division and in 2008
total coal consumption for electricity generation
increased slightly by 0.2 percent to end the year at
10.4 million short tons.
Coal consumption in the non-electric power sector
(comprised of the other industrial, coking coal, and
the commercial and institutional sectors) declined in
2008 (Figure 6). Coal consumption at coke plants
decreased by 0.6 million short tons to end the year at
22.1 million short tons, a decline of 2.8 percent. The
decline in U.S. coke production in 2008 was a result
of the economic downturn in the last quarter of the
year when several steel plants lowered production,
some by more than half, in response to the worldwide drop in demand for their products.

2

The sector that was titled ‘residential and
commercial’ has been renamed as ‘commercial and
institutional.’ The data for this sector is now collected
on a different survey form so exact comparison of
2008 to 2007 data is not applicable for this sector.

10 of 14

 Coal Prices
Even though it was not a great year for coal
consumption in 2008, domestic coal prices continued
to increase in 2008 rising for the fifth consecutive
year. Two factors drove the increase: increases in fuel
surcharges by the transportation sector in response to
the large rise in oil prices, and the dramatic rise in the
eastern coal spot market prices in response to the
increased demand internationally for U.S. coal.
The majority of coal sold in the electric power sector
is through long-term contracts, in conjunction with
spot purchases to supplement the demand. Also, the
majority of the coal is transported from the mine to
the electric generating facility by train, barge, truck
or a combination of these methods. All of these
transportation methods use fuel oil and as a
consequence of the rapid increase in oil prices
through most of the year, higher fuel surcharges
increased the delivered price of coal. According to
preliminary data for 2008, coal prices at electric
utilities (a subset of the electric power sector)
increased for an eighth consecutive year, to $41.23
per short ton, an increase of 14.3 percent over the
2007 price. Coal prices at independent power
producers for 2008 increased to $39.31 per short ton,
an increase of 18.7 percent. The average delivered
price of coal to the other industrial sector increased
by 16.6 percent to an average price of $63.44 per
short ton in 2008. In 2008 the delivered price of coal
to U.S. coke plants increased by 24.3 percent to reach
an average price of $118.09 per short ton (Figure 7).

Figure 7. Delivered Coal Prices, 1999-2008
(Nominal Dollars)
$140
$120
$100
$80
$60
$40
$20
$0
1999

2000

Coke plants

2001

2002

Other Industrials

2003

2004

Electric Utilities

2005

2006
Exports

2007

2008

Imports

Sources: Energy Information Administration, Quarterly Coal Report, OctoberDecember 2008, DOE/EIA-0121(2008/Q4) (Washington, DC April 2009); Coal
Industry Annual, DOE/EIA-0584, various issues; and Annual Coal Report,
DOE/EIA-0584(2003), various issues; Electric Power Monthly, March 2009,
DOE/EIA-0226 (2009/03), (Washington, DC); and U.S. Department of
Commerce, Bureau of the Census, "Monthly Report EM 545" and "Monthly
Report IM 145..

Metallurgical coal exports increased in 2008 to end
the year at 42.5 million short tons, an increase of 32.2
percent as the world metallurgical coal market
tightened due to increasing world demand combined
with production and transportation issues experienced
during the year in other metallurgical coal exporting
countries. With tightened world-wide demand, the
result was a huge increase in metallurgical coal
export prices. In 2008, the average price of U.S.
metallurgical coal exports rose by 51.3 percent to a
level of $134.62 per short ton, an increase of $43.63
per short ton over the 2007 level. In part, as a
consequence of the increasing demand for
metallurgical coal, several of the international steel
companies purchased U.S. metallurgical coal
producing companies during 2008.

Exports and Imports
Exports. Increased international demand for coal
helped to push U.S. coal exports to levels not seen in
over a decade. Total U.S. coal exports for 2008 were
81.5 million short tons, an increase of 22.4 million
short tons over the 2007 level, or 37.8 percent (Figure
8). The large increase was in response to growing
demand, predominantly from Europe and Asia for
coal due to supply disruptions that affected the ability
of other coal-exporting countries to ship their
product. Heavy rains in the beginning of the year
caused production problems for Australia while
increased domestic demand for coal in South Africa,
Indonesia, Vietnam, and Russia cut into their
available tonnage for the world markets. The
increasing demand for U.S. coal also resulted in
increasing coal export prices. The average price of
U.S. coal exports in 2008 was $97.68 per short ton,
an increase of 39.0 percent.

As it has traditionally been in the past, Europe is the
main destination of U.S. metallurgical coal and in
2008 accounted for almost 60 percent of the total
metallurgical coal exports. Europe was the
destination for 25.5 million short tons in 2008, an
increase of 38.8 percent from 2007. In 2008, the
Netherlands was the primary destination of U.S.
metallurgical coal exports with a total of 3.4 million
short tons, an increase of 1.3 million short tons.
(Note: Some ports in the Netherlands serve as
transshipment points for coal being sent to other
countries and the coal exports shipped there may
move to other destinations.) The average price per
11 of 14

 per short ton, representing increases of 18.2 and 62.4
percent respectively.

Figure 8. U.S. Coal Export and Imports, 1999-2008
(Million Short Tons)

The Asian market accounted for almost 10 percent of
U.S. metallurgical coal exports in 2008. Total
metallurgical coal exports to Asia totaled 4.2 million
short tons in 2008, an increase of 311.2 percent from
2007, as the U.S. helped to meet the gap in supply
due to the production problems in Australia. India
was the major Asian destination of U.S. coal exports
in 2008, with a total of 1.6 million short tons, an
increase of 79.9 percent. Japan, which did not receive
any U.S. metallurgical coal exports in 2007, was also
a major Asian destination in 2008, with a total of 1.4
million short tons. South Korea received 1.1 million
short tons in 2008, almost 650 percent higher than the
143 thousand short tons it received in 2007. The
average price for U.S. metallurgical coal exports to
India was $217.77 per short ton, an increase of
$115.10 per short ton. The average price for
metallurgical coal exports to Japan was $142.96 per
short ton while the price to South Korea rose
considerably in 2008 by $92.36 per short ton to
$165.62.

90
80
70
60
50
40
30
20
10
0
1999

2000

Total Imports

2001

2002

Total Exports

2003

2004

Steam Coal Exports

2005

2006

2007

2008

Metallurgical Coal Exports

Sources: U.S. Department of Commerce, Bureau of the Census, "Monthly
Report EM 545" and "Monthly Report IM 145."

short ton to the Netherlands increased 37.3 percent in
2008, from $85.78 to $117.81. Italy, France, and the
United Kingdom were also major European
destinations of U.S. metallurgical coal in 2008. Italy
received a total of 2.9 million short tons, 15.1 percent
less than the 2007 total, while the average price of
metallurgical coal exports to Italy was up from
$94.65 per short ton to $110.27 per short ton in 2008.
Both France and the United Kingdom each received
2.1 million short tons of U.S. metallurgical coal in
2008; that total was an increase of 19.0 percent for
France and an increase of 23.0 percent for the United
Kingdom. The percentage increases in the average
price per short ton of those metallurgical coal exports
were 31.2 and 34.2 percent respectively, with the
average price per short ton for metallurgical coal to
France at $114.74 and the price for the United
Kingdom at $121.01 in 2008. Other major European
destinations for U.S. metallurgical coal in 2008 were
Turkey, Belgium, Poland, Romania, Croatia, Spain
and Germany, with each receiving over 1 million
short tons of coal. The average price of metallurgical
coal exports to these major destinations ranged from
$110.40 per short ton in Germany to $203.69 per
short ton in Turkey.

Metallurgical coal exports to countries in Africa
decreased somewhat in 2008 from 2.1 million short
tons to 2.0 million short tons. The majority of the
metallurgical coal exports to Africa went to Egypt.
Total U.S. metallurgical coal exports to Egypt in
2008 were 1.4 million short tons with an average
price of $209.49 per short ton, an increase in price of
130.9 percent from 2007.
Total U.S. steam coal exports increased in 2008 for
the sixth consecutive year as the tight world market
drove many users to the U.S. for their steam coal
needs. In 2008, steam coal exports rose by 44.5
percent to a level of 39.0 million short tons, while the
average price per ton increased by 19.7 percent to
$57.35 per short ton. Canada is the single largest
market for all U.S. coal exports as well as the
primary North American destination of steam coal
exports. In 2008, Canada received 19.4 million short
tons of steam coal exports, an increase of 4.6 million
short tons and accounted for 49.7 percent of all of
2008 steam coal exports. The average price of steam
coal exports to Canada decreased by $4.63 in 2008 to
$36.00 per short ton. (Note: The steam coal exports
to Canada contain some tonnage of U.S. steam coal
exports to countries in Asia. This is due to the fact
that there are currently no major coal-exporting
facilities on the U.S. west coast. Some coal producers
shipped steam coal by rail to coal-export terminals in
British Columbia that were then loaded to ships for
further transport to Asian buyers.)

Total U.S. metallurgical coal exports to countries in
North America increased in 2008, while shipments to
South America decreased, with the primary
destinations being Canada and Brazil. Canada
received 3.6 million short tons of metallurgical coal
from the U.S., a slight decrease of 1.0 percent over
the 2007 level, while shipments to Brazil totaled 6.0
million short tons, a decline of 6.1 percent. The
average price of metallurgical coal in 2008 increased
to both countries with the price to Canada at $91.00
per short ton, while the price to Brazil was $143.40
12 of 14

 Europe is the second largest market for U.S. steam
coal exports due to the declining coal production in
many of the countries combined with the proximity
of the major eastern U.S. coal ports. Total steam coal
exports to Europe increased in 2008 to a total of 14.8
million short tons, an increase of 69.2 percent from
2007. The average price of steam coal to Europe rose
in 2008 by 25.3 percent, increasing to a level of
$74.93 per short ton. One-third of the increase in U.S.
steam coal exports to Europe was accounted for by
one country: the United Kingdom. Total U.S. steam
coal exports to the U.K. in 2008 were 3.7 million
short tons, an increase of 119.4 percent. The average
price of steam coal exports to the U.K. in 2008 was
$62.53 per short ton, an increase of 33.5 percent from
2007. Other major European destinations for U.S.
steam coal were: the Netherlands, Germany, France,
Belgium, and Spain. The respective amount of steam
coal exports in 2008 were: 3.6 million short tons, 1.4
million short tons, 1.4 million short tons, 1.3 million
short tons, and 1.1 million short tons, while the
average price per short ton was: $71.77, $75.23,
$92.93, $85.35, and $65.56. These steam coal export
prices represent increases that range from a low of
$7.95 per short ton (the Netherlands) to a high of
$25.41 (Belgium).

was $129.67 per short ton, a decrease from the
$175.33 per short ton level of 2007. The two other
primary Asian destinations of U.S. steam coal exports
were South Korea and China, with totals of 281
thousand short tons and 242 thousand short tons
respectively. The average price per short ton for
South Korea in 2008 was $63.03 per short ton and for
China was $122.93 per short ton.
U.S. coke exports increased in 2008 by 35.7 percent
to a total of 2.0 million short tons. Most of the coke
exports went to Canada which accounted for 38.7
percent of all U. S. coke exports with 758 thousand
short tons. The average price of coke exports in 2008
was $107.42 per short ton, an increase of 18.4
percent over 2007.
Imports. U.S. coal imports declined in 2008 for the
first time in six years. Total coal imports were 34.2
million short tons, a decrease of 5.9 percent, or 2.1
million short tons. Coal imports represent a small
portion of the domestic coal consumption, averaging
about 3 percent of total U.S. coal consumption. The
average price of imported coal rose significantly, by
25.6 percent, to a level of $59.83 per short ton.
Colombia, which dominates the U.S. coal import
market, accounted for over three-fourths of all 2008
coal imports. The U.S. imported 26.3 million short
tons of coal from Colombia in 2008, a drop of 0.6
million short tons, or 2.2 percent. The average price
of Colombian coal into the U.S. was $57.01 per short
ton, an increase of 23.1 percent over 2007. In 2008,
total coal imports from Indonesia, the second largest
supplier of coal imports, were 3.4 million short tons,
a slight decrease of 0.3 million short tons, while the
average price increased by 44.4 percent to $37.68 per
ton. Coal imports from Venezuela declined by 32.5
percent to 2.3 million short tons, while the price of
the coal imports increased by 38.9 percent. Canada
was another major source of U.S. coal imports in
2008 with a total of 2.0 million short tons, unchanged
from the 2007 total. These four countries accounted
for over 99 percent of total U.S. coal imports, the
same rate as in 2007. Although most coal imports are
used for electric generation, metallurgical coal
imports were 1.7 million short tons in 2008, all from
Canada.

U.S. steam coal exports to the African continent
declined by 22.2 percent in 2008, to a total of 1.9
million short tons. The majority of the decrease in
steam coal exports to Africa is attributable to one
country, Morocco. Total steam coal exports to
Morocco in 2008 were 1.7 million short tons, down
by 28.2 percent. The average price of steam coal
exports to Morocco in 2008 was $84.15 per short ton,
an increase of 77.8 percent from 2007.
Although the total amount of steam coal exports to
South America (the primary source of coal imports
for the U.S.) increased dramatically in 2008 to a total
of 1.3 million short tons, it still only accounted for
3.2 percent of all U.S. steam coal exports. The
majority of the South American steam coal exports
went to Chile with a total of 854 thousand short tons.
The average price of steam coal exports to South
America increased to $74.40 per short ton from the
2007 level of $50.87 per short ton, while the average
price to Chile increased to $47.93 per short ton from
$38.42 per short ton.

U.S. coke imports increased substantially in 2008 by
46.5 percent to end the year at 3.6 million short tons.
Increases in shipments of coke from China of 1.3
million short tons in 2008 accounted for most of the
increase in coke imports. Due to the tight world
metallurgical coal market during most of 2008, the
average price of U.S. coke imports rose dramatically
by 139.2 percent to a level of $465.15 per short ton.

Steam coal exports to Asia in 2008 were 1.1 million
short tons, a level not seen since 2005, and an
increase of 496.5 percent from 2007. Japan was the
primary Asian destination of U.S. steam coal exports
in 2008 with a total of 337 thousand short tons, well
above the 5 thousand short tons it received in 2007.
The average price of U.S. steam coal exports to Japan
13 of 14

 Coal Stocks
Total coal stocks at the end of 2008 were 199.2
million short tons, an increase of 6.4 million short
tons from the prior year (Figure 9). Estimated coal
stocks held by producers and distributors were lower
by 19.6 percent, as coal producers used stocks to
supplement the increasing demand. Industrial users,
including coke plants, held a total of 8.3 million short
tons at the end of 2008, 0.8 million short tons above
the level at the start of the year. Coal stocks in the
electric power sector continued to increase in 2008.
The electric power sector ended the year with a total
of 163.1 million short tons, an increase of 11.8
million short tons, or 7.8 percent over the 2007 level.
Coal stocks for the commercial and institutional
sector totaled 0.5 million short tons. [Note: No stock
data is available for the commercial and institutional
sector prior to 2008.]

Figure 9. Year-End Coal Stocks, 1999-2008
(Million Short Tons)
180
160
140
120
100
80
60
40
20
0
1999

2000

2001

Electric Power

2002

2003

Other Industrial

2004

2005

Coke Plants

2006

2007

2008

Producer/Distributor

Sources: Energy Information Administration, Quarterly Coal Report, OctoberDecember 2008, DOE/EIA-0121(2008/Q4) (Washington, DC, April 2009); and
Coal Industry Annual, DOE/EIA-0584, various issues."

Summary
The U.S. coal industry experienced a record year in
2008, with increased production, prices, and exports.
However, domestic coal consumption declined for
the year as did coal imports. Both delivered coal
prices and export coal prices continued to increase in
2008, some to record levels. Coal stocks continued to
increase in all sectors.
While 2008 was a banner year for the U.S. coal
industry, the outlook for U.S. coal in 2009 is bleak.
With the majority of the world in an economic
recession, and increasing competition by other coalproducing countries, the domestic coal industry could
see a decline in both coal production and
consumption for 2009, as well as lower coal exports.
(See Energy Information Administration’s ShortTerm Energy Outlook.)

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