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EIA paints a gloomy picture for 2015

Published by
World Coal,

The US Energy Information Administration (EIA) expects US coal production to grow by 1.2% over 2014 and then remain steady through 2015, according to the latest Short-Term Energy Outlook.

Meanwhile this year’s consumption will increase by 1.2% to 868 million short on higher electricity demand and higher power sector natural gas prices. Consumption will drop back 0.4% in 2015, however, as plant retirements rise in response to the implementation of the Mercury and Air Toxics Standards (MATS) and natural gas and electricity prices drop relative to coal prices.

Exports are likely to drop under 100 million short t this year to 96 million short t on the back of slowing world demand, lower international coal prices and competition from other coal-producing regions. Exports will drop further next year as the market continues to be weak to 83 million short t, the lowest level since 2010.

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