U.S. coal production has significantly declined over the past two decades, with 2023 witnessing output of 578 million short tons (MMst). This figure is less than half of the peak production level reached in 2008.
The reduction in coal production is generally consistent across all types and has persisted into 2024. Key factors contributing to this decline include rising mining costs, stricter environmental regulations, and increased competition from alternative energy sources for power generation.
The type of coal produced in the U.S. is categorized based on the depth at which deposits are found. Deeper deposits experience more heat and pressure, resulting in coals with higher heat capacities, carbon content, and fewer impurities.
The ranking of coal types from highest to lowest carbon content is anthracite, bituminous, subbituminous, and lignite. Most bituminous coal is produced in the Appalachian and Illinois Basins in the eastern U.S., while subbituminous coal is primarily sourced from the Powder River Basin in northeastern Wyoming and southeastern Montana.
Lignite coal is mainly mined in North Dakota and Texas. Typically, coal producers sell these four ranks of coal primarily as thermal coal for power plants, where it is burned to generate steam for electricity.
Additionally, bituminous coal from the Appalachia region is valued for its metallurgical properties, making it critical in steel production. In 2023, the U.S. exported 51 MMst of bituminous coal for this purpose.
Subbituminous coal is usually sold to domestic coal-fired power plants or occasionally exported to Asian markets. The cost of transporting subbituminous coal has an impact on sales, as long-distance shipping typically incurs high expenses.
Lignite, on the other hand, is sold almost exclusively to nearby power plants due to its lower heat content and economic factors. The Annual Coal Report provides comprehensive insights into U.S. coal production, productivity, reserves, and pricing.
Recent data from quarterly and weekly reports indicate that coal production has continued to decline in 2024. Projections in the latest Short-Term Energy Outlook suggest that production will further decrease to 483 MMst in 2025 and 467 MMst in 2026, largely due to ongoing competition with natural gas and renewable energy sources.