The U.S. coal industry -- faced with new environmental regulations and competition in the generation market from low cost natural gas -- turned to exporting coal to keep as many mines open and workers employed as possible. But that too has taken a downturn with coal exports expected to be 8.5 percent less this year than last year’s record of 125.7 million short tons.(i) The main reason for the downturn is believed to be softening demand growth in China. But, other factors such as calls by President Obama, the World Bank, and the European Investment Bank to no longer fund coal plants overseas except in rare cases also contributed.[ii] Despite all this, the International Energy Agency is forecasting that coal will overtake oil as the world’s major fuel source by 2017 and the Energy Information Administration predicts continued strong growth in global coal consumption through 2040.
