US coal production, consumption to increase in 2017: EIA
January 13, 2017 at 11:35 am
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The US will burn and produce more coal this year than in 2016, the Energy Information Administration said Tuesday.
In its first Short-Term Energy Outlook of the year, the EIA estimates electric power sector coal consumption will increase by 6%, or 41 million st, year over year to 720 million st on higher natural gas prices and increased electricity generation.
The agency said the Henry Hub natural gas spot price should average $3.55/MMBtu in 2017, up more than $1 from $2.51/MMBtu in 2016. Consumption is estimated to have fallen 8%, or 60 million st, in 2016 to 678.7 million st.
RECORD PRODUCTION DROP
US coal production for 2016 fell 18%, or 158 million st, year on year to 739 million st, the EIA estimates, marking the lowest level of production since 1978. Such a drop in output would be the largest annual decline ever in both tons and percentage based on data going back to 1949.
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