The fantasy of going green runs into the reality of China and much of the rest of Asia expanding their coal usage, and they’re already the world’s biggest users. From Robert Rapier at oilprice.com:
- U.S. coal demand has decreased due to the increased availability of natural gas, growth in renewable energy sources, and stricter environmental regulations.
- Despite the decline in the US, global coal consumption, especially in Asia and China, which consumes 55% of the world’s coal, continues to rise due to the relative cheapness and abundance of coal, and rapid industrialization.
- Coal demand rebounded in the US and EU in 2021 and 2022 due to the European energy crisis and increased coal burning as an emergency measure, raising concerns over the ability to reduce global greenhouse gas emissions.
In the U.S., coal demand has been on a downward trend for about 15 years. There have been three significant drivers behind this decline.
One of the primary reasons for the decline in U.S. coal demand is the increased availability and affordability of natural gas. The advent of hydraulic fracturing (fracking) and advanced drilling techniques led to a significant expansion of natural gas production, resulting in lower natural gas prices. Many power plants have shifted from coal to natural gas as it produces fewer greenhouse gas emissions and can be more economically viable.
China uses almost 10 times as much coal as the US does.
https://www.supplychainbrain.com/articles/37776-global-coal-demand-hit-record-levels-in-2022-expected-to-grow-again-in-2023?mc_cid=6fa8a08ead&mc_eid=4961da7cb1