Virginia Coal Production Down 16% Over Past Year

By: Lowell
Published On: 3/22/2008 9:03:43 AM

We talk a lot here at RK about coal, and particularly about Dominion's proposed new coal-fired power plant in Wise County.  This morning, the Richmond Times Dispatch helps put Virginia's coal industry in perspective with some statistics:

Virginia coal production is down about 10 percent this year through March 15.

According to the U.S. Energy Information Administration, 5.4 million tons of coal were mined in Virginia, compared with 6 million tons during the same period last year.

[...]

For the 52-week period that ended March 15, Virginia coal production was down 16 percent. A total of 24.6 million tons were mined, compared with 29.4 million tons a year earlier.

For those 12 months, Virginia coal production was about half what it was during a similar period less than two decades ago.

That's right, Virginia's coal production is now half of what it was 20 years ago, and continuing to fall.

More coal stats: according to the Energy Information Administration (EIA), Virginia's coal production accounted for 2.2% of total U.S. coal output over the past 52 weeks. Virginia's production was 24,639 thousand short tons - mst, ranking 12th behind: 1) Wyoming (457,060 mst), 2) West Virginia (152,001 mst), 3) Kentucky (114,519 mst), 4) Pennsylvania (64,277 mst), 5) Montana (43,881 mst), 6) Texas (42,341 mst), 7) Colorado (37,223 mst), 8) Indiana (35,295 mst), 9) Illinois (31,645 mst), 10) North Dakota (29,279 mst), and 11) New Mexico (24,742 mst).

What is coal's importance to Virginia's economy?  In 2006, Virginia's economic output was $369 billion, of which mining -- not just coal -- represented $1.8 billion (0.49%).  For comparison purposes, Virginia's 2006 economic output from professional and technical services was $43.3 billion (11.7%); from finance and insurance was $22.8 billion (6.2%); from retail trade was $22.4 billion (6.1%); and from construction was $19.6 billion (5.3%).

The point of all this is simply to put Virginia's coal industry in perspective, and specifically to dispel the common misconception that "Virginia is a coal state."  Actually, Virginia is the 12th largest coal producer in the United States, with output just 1/20th of Wyoming's and 1/6th of West Virginia's.  And coal makes up a miniscule percentage of Virginia's economy, less than 0.49%. It seems to me that we should be making coal-related decisions, such as whether or not to build the proposed new Dominion coal-fired power plant, on the merits of the case and not by arguments about the importance of coal to Virginia's overall economy.*

*Note: It is important to take into account the impacts, both positive and negative, of any proposed coal/power development on the local economy and environment as well.


Comments



Meanwhile, Dominion (Lowell - 3/22/2008 9:07:12 AM)
"decries delay of permit for St. Paul power plant.


Thanks (KathyinBlacksburg - 3/22/2008 11:19:19 AM)
For putting all this in perspective.  A really excellent post.


Spot on (Dan - 3/22/2008 2:59:37 PM)
Lowell,

You are absolutely correct.  Coal is not Virginia's economy.  It is not Virginia's future.  Virginia also maintained natural gas production in over 5,000 wells in 2006, although those wells are not nearly enough to provide for in-state consumption, including for Virginia's gas-fired power plants.

This is why Virginia needs to grow its clean energy economy.  
Wind, solar, and biomass are critical elements of that, along with biofuels like Switchgrass.  Virginia is importing more and more fossil fuel energy every year and spending perhaps billions in the process.  

If Virginia commits to cleaner sources of energy, the net-benefits to the economy, public health, and environmental protection to aid tourism, could certainly outstrip coal (no pun intended).



emotion aside one must consider (Alter of Freedom - 3/23/2008 10:39:36 PM)
that Natural Resources study stated that for every one coal worker there are three other workers in the Virginia economy ties to that worker. When most folks talk about they talk about coal miners or SW Virginia, but fact is there are thousands of Virginians who work in industries tied to coal. End coal for example could potentially strip CSX Corp and Norfolk Southern much of its revenues thus tghrowing much of its workforce into freefall. If Virginia were to lose the three jobs attached to the single coal mining job I think what were are talking about here is a little for than simply ending coal. Gov. Kaine I think is seeing the big picture on this and maybe many folks these days could care less about those "corporations" we here about daily getting bashed like Dominion Power and others, but fact remains those corporations employ thousands of Virginians and we must ask ourselves are we really willing to risk anymore potential economic pressure that may result.
Not saying its an easy call and in agreement in principle with the tenents for clean sources of energy for the future but also know one must look at the totality--coal economics, services tied to coal/energy/utilities, rail economics and of course our Port economy.


EIA data additions (Alter of Freedom - 3/23/2008 10:53:13 PM)
Virginia overall tonage fell 10.2% to 25.8 million tons. Appalachia fell 3.6% in 2007 to 364.6 million tons and the US overall fell 1.4%.
2008 is being marked by considerable increased international demand for coal. Coal exports are rising at a clip of 11.1 percent versus first six months of 2007 to some 15 million shipped tons.
Another aspect is in August 07 coal was $44 per ton versus 2008 3Q projections of $60 per ton as international demand in Asia(China) and India increases.
Coal like oil is market driven and supply and demand principles apply like any other market and companies have the power to meet demand projection by increasing production capacity. The opposite is true as well if the powers that be decrease production of coal the price will rise.
One issue regarding capacity is that the port terminals required for shipping coal internationally are at full capacity and have not been able to increase the levels shipped per day regardless of the amount of coal produced and transported to them.