...Longer term factors include the contrast between declining US demand for coal and increasing European and strong rising Asian demand.
US domestic demand for coal will probably decrease from the current 44 percent of US electrical production to as low as 22 percent within the next 20 years, according to some analysts. Demand in the U.S. is dropping primarily due to new natural gas reserve discoveries and Clean Air Act regulations. [4]
In contrast, demand for coal is rapidly rising in Asia. U.S. coal exports to China surged from 2009 to 2010, jumping from 387,000 tons (January-September) to over 4 million tons the following year. Demand for US coking and steam coal also grew rapidly in Japan, India, and South Korea. Industry forecasters anticipate a “30-year super cycle in global coal markets.” U.S. companies hope to cash in on the market and dramatically increase coal exports, especially from the Powder River Basin (PRB) of Wyoming and Montana through ports on the US west coast. [5]
U.S. coal exports rose 49 percent during the first quarter of 2011 compared to the previous quarter, according to the U.S. Energy Information Administration the .[6]
In November 2011 the DOE reported that six seaports on the Gulf Coast and East Coast of the United States account for the bulk of the country's coal exports. Additionally the report noted, "Six seaports accounted for 94% of U.S. coal exports in 2010, up from 63% in 2000. Over 68% of total U.S. coal exports in 2010 were coking coal, which is used in making iron and steel. Steam coal, used to generate electricity, comprised the remaining 32% of exports."[7]