US Coal Production Record Low in Jan’16

US produced 58.2 MnT of coal in the first month of 2016. The quantity produced is record low and fell by about 7% M-o-M.

Energy Information Agency, US has reported that its monthly coal production fell by 7%. According to EIA, coal production in the country was assessed at 58.2 MnT in Jan’16 against 62.8 MnT in Dec’15. The country’s production fell by 7% M-o-M and 33% Y-o-Y. Quantity in MnT Source- EIA

US coal production weekly review

In the current week, United States has produced 12.8 MnT of coal in contrast to 13.6 MnT in week 5.

Quantity in MnT Source- EIA

Cause of low coal production

Coal production in US has witnessed a significant downfall in 2015. The following are the main reasons

Persistent downfall in gas prices

Continuous downfall in gas prices has made it more popular choice over conventional source of energy. The budding gas operated power plants all over the country has lead to downfall in coal production.

Shift to alternative sources of energy 

The country is presently relying natural sources of energy such as solar and wind energy. The alternates are cheaper and are easily available.

Stern policy and parameter against air pollution

Strict rules and regulation by US government have compelled power players to use gas and other renewable sources of energy. Also, enjoins from Clean Air Act caused the major shift in US. Strict notification to power producers to reduce sulphur emission during electricity generation compelled them to shift in other sources.