Investors want assurances that capital is not being spent on high - cost, high - carbon projects that may not be competitive as global
coal demand declines.
In Germany,
coal demand declines even as nuclear power is progressively phased out, with coal use remaining highly sensitive to the relative prices of coal, natural gas and carbon dioxide (CO2).
Chinese
coal demand declined in 2016 — as it did in 2014 and 2015 — despite an increase in coal - power generation.
Not exact matches
Cele notes that, «the
demand from China for iron - ore continues to grow, but at a
declining pace, further exacerbating pricing pressure,» meaning that Vale's considerable investment in nickel,
coal, fertilisers and copper will only partially mitigate the impact of the increase in iron - ore mining capacity globally on the company.
Also, if newer greener energy technologies can reasonably replace our baseline power needs from
coal - fired power plants then
coal demand will
decline further.
However,
coal demand can continue to
decline if natural gas prices stay low for a very long time allowing further replacement of
coal - fired power plants with gas - fired ones.
While
demand has
declined,
coal is still needed to meet America's power
demand.
Coal consumption continues apace hence it would appear that the production decline is not demand led but rather that China may be approaching peak c
Coal consumption continues apace hence it would appear that the production
decline is not
demand led but rather that China may be approaching peak
coalcoal.
The revision comes as official preliminary data indicate that a
decline in Chinese
coal demand occurred in 2014, and is set to accelerate in 2015.
In an energy outlook this week, analysts at the U.S. Energy Information Administration (EIA) predicted a dramatic
decline in U.S. energy
demand through 2035 and a reconfigured energy pie that sidelines a significant amount of
coal for natural gas.
The International Energy Agency estimated last year that both the
decline in China's
coal use and falling electricity
demand reduced its carbon dioxide emissions by 1.5 percent in 2014, leading to a 0.2 percent reduction in global emissions.
The industry has faltered because of
declining global
demand and low natural gas prices, which have encouraged electric power companies to use gas instead of
coal to generate electricity, said Ray Rasker, executive director of Headwaters Economics, an independent research group focusing on the economic implications of land management decisions in the West.
Inexpensive natural gas, lower international
coal demand and U.S. environmental regulations have led to a precipitous
decline in U.S.
coal production, according to the U.S. Energy Information Administration.
Peabody also agreed to disclose a range of scenarios from the International Energy Agency suggesting
declining future
demand for
coal, changing course from earlier financial statements where the company only disclosed IEA's business - as - usual scenario.
Energy emissions have
declined to lowest levels since 1991 due to lower heating
demand, less
coal usage, and utilization of more renewable energy sources.
«Cheap natural gas, the rapid
decline in the cost of solar and wind generation, and continued flat electricity
demand make it next to impossible that U.S.
coal production will significantly increase in coming years.»
In the Sustainable Development Scenario, low - carbon sources double their share in the energy mix to 40 % in 2040, all avenues to improve efficiency are pursued,
coal demand goes into an immediate
decline and oil consumption peaks soon thereafter.
Following a tumultuous year for the
coal industry, including the disastrous
coal - chemical spill that left 300,000 without access to clean water in West Virginia, and increasing layoffs as
coal mining continues to
decline, a coalition of Appalachian citizen groups are
demanding increased action from the Obama Administration.
The CO2 Scorecard report, by contrast, examined changes in electricity at the regional level using data from grid operators, which showed researchers greater detail about where natural gas had replaced
coal or renewables; where renewables replaced
coal; and where electricity consumption simply
declined because of reduced
demand.
U.S. carbon emissions dropped 1.7 percent due to a rise in natural gas over
coal energy, a
decline in oil use, and a warm winter, which reduced heating
demands.
Power generation now accounts for 93 % of US
coal consumption, as non-power commercial and industrial
demand has
declined.
According to company officials, the hike is needed to «comply with EPA environmental improvements to reduce polluting emissions from
coal - fired plants, make up for a
decline in
demand for electricity from commercial and industrial users, and cover rising costs of health care for the utility's employees.»
If it can be made cheaper than
coal, the argument for
coal use is diminished (not completely done away with, as
coal prices will
decline in response to reduced
demand).
While
declining strongly in the industrialized regions as a result of sulfur control policies in Europe and North America, and because of economic reforms in Russia and Eastern Europe, emissions increase rapidly in Asia with an increase in the energy
demand and
coal use.
Nearly $ 1 trillion (# 700bn) is being invested in new
coal - fired power plants worldwide despite the fact that the
demand for electricity generated from
coal has
declined for two years in a row, shows a new report released today.
As a result, US
coal production is forecast to be around 510 Mtce in 2022, equivalent to current levels, while
demand declines to 470 Mtce, a drop of 1 % per year on average over the period.
Combined with saturation of heavy industry growth,
coal demand is forecast to
decline through 2022, despite growth in
coal conversion and in
coal - power generation.
Global
coal demand dropped for a second year in a row in 2016, approaching the previous record for two - year
declines set in the early 1990s.
Already, the impact of reduced
demand, growing renewables, and rooftop solar, is causing a
decline in output in
coal generation, bringing capacity factors down sharply, particularly for black
coal generators.
For example, the IEA see
coal demand as flat over the next five years, which will likely be followed by a steady
decline as CO2 emissions continue to decouple from economic growth.
Most discussion of
declining demand for US
coal focuses on the US electricity sector (which is responsible for 93 percent of domestic
coal consumption), specifically the twin booms in natural gas and renewables.
But that is more than counterbalanced by a combination of
declining use of
coal and reductions in energy
demand from structural changes in the Chinese economy, with energy - guzzling heavy industries such as cement and steel production both
declining.
While
coal - to - gas switching played a major role in reducing emissions in previous years, last year the drop was the result of higher renewables - based electricity generation and a
decline in electricity
demand.
Global
demand for oil and
coal will most likely peak and could
decline over the next two decades.
«The
decline in
coal demand has meant existing reserves will last a lot longer.»
Illinois Basin
coal prices
declined just 5 %, partially offset by a 9 % increase in production because of robust
demand for the low - cost, high - sulfur
coal from the region.
For example, the US Bureau of Land Management (BLM) announced an intention to analyze whether it might set a «budget» for how much
coal to make available for production on federal lands based on a «a
declining schedule consistent with the United States» climate goals and commitments and market
demand».
For example, there was a rapid increase in US
coal prices due to rising global
demand before 2008, then a rapid fall after 2008 when global
demands declined [23].
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Declining» (12/14/06) «Exploding U.S. Grain
Demand for Automotive Fuel Threatens World Food Security and Political Stability» (11/3/06) «The Earth is Shrinking: Advancing Deserts and Rising Seas Squeezing Civilization» (11/15/06) «U.S. Population Reaches 300 Million, Heading for 400 Million: No Cause for Celebration» (10/4/06) «Supermarkets and Service Stations Now Competing for Grain» (7/13/06) «Let's Raise Gas Taxes and Lower Income Taxes» (5/12/06) «Wind Energy
Demand Booming: Cost Dropping Below Conventional Sources Marks Key Milestone in U.S. Shift to Renewable Energy» (3/22/06) «Learning From China: Why the Western Economic Model Will not Work for the World» (3/9/05) «China Replacing the United States and World's Leading Consumer» (2/16/05)» Foreign Policy Damaging U.S. Economy» (10/27/04) «A Short Path to Oil Independence» (10/13/04) «World Food Security Deteriorating: Food Crunch In 2005 Now Likely» (05/05/04) «World Food Prices Rising: Decades of Environmental Neglect Shrinking Harvests in Key Countries» (04/28/04) «Saudis Have U.S. Over a Barrel: Shifting Terms of Trade Between Grain and Oil» (4/14/04) «Europe Leading World Into Age of Wind Energy» (4/8/04) «China's Shrinking Grain Harvest: How Its Growing Grain Imports Will Affect World Food Prices» (3/10/04) «U.S. Leading World Away From Cigarettes» (2/18/04) «Troubling New Flows of Environmental Refugees» (1/28/04) «Wakeup Call on the Food Front» (12/16/03) «
Coal: U.S. Promotes While Canada and Europe Move Beyond» (12/3/03) «World Facing Fourth Consecutive Grain Harvest Shortfall» (9/17/03) «Record Temperatures Shrinking World Grain Harvest» (8/27/03) «China Losing War with Advancing Deserts» (8/4/03) «Wind Power Set to Become World's Leading Energy Source» (6/25/03) «World Creating Food Bubble Economy Based on Unsustainable Use of Water» (3/13/03) «Global Temperature Near Record for 2002: Takes Toll in Deadly Heat Waves, Withered Harvests, & Melting Ice» (12/11/02) «Rising Temperatures & Falling Water Tables Raising Food Prices» (8/21/02) «Water Deficits Growing in Many Countries» (8/6/02) «World Turning to Bicycle for Mobility and Exercise» (7/17/02) «New York: Garbage Capital of the World» (4/17/02) «Earth's Ice Melting Faster Than Projected» (3/12/02) «World's Rangelands Deteriorating Under Mounting Pressure» (2/5/02) «World Wind Generating Capacity Jumps 31 Percent in 2001» (1/8/02) «This Year May be Second Warmest on Record» (12/18/01) «World Grain Harvest Falling Short by 54 Million Tons: Water Shortages Contributing to Shortfall» (11/21/01) «Rising Sea Level Forcing Evacuation of Island Country» (11/15/01) «Worsening Water Shortages Threaten China's Food Security» (10/4/01) «Wind Power: The Missing Link in the Bush Energy Plan» (5/31/01) «Dust Bowl Threatening China's Future» (5/23/01) «Paving the Planet: Cars and Crops Competing for Land» (2/14/01) «Obesity Epidemic Threatens Health in Exercise - Deprived Societies» (12/19/00) «HIV Epidemic Restructuring Africa's Population» (10/31/00) «Fish Farming May Overtake Cattle Ranching As a Food Source» (10/3/00) «OPEC Has World Over a Barrel Again» (9/8/00) «Climate Change Has World Skating on Thin Ice» (8/29/00) «The Rise and Fall of the Global Climate Coalition» (7/25/00) «HIV Epidemic Undermining sub-Saharan Africa» (7/18/00) «Population Growth and Hydrological Poverty» (6/21/00) «U.S. Farmers Double Cropping Corn And Wind Energy» (6/7/00) «World Kicking the Cigarette Habit» (5/10/00) «Falling Water Tables in China» (5/2/00) Top of page
The Institute of Economics and Financial Analysis (IEEFA)'s
demand analysis shows how China's
coal demand could surprise people by peaking in 2016 and then
decline gradually thereafter, driven by efficiency measures, increased renewables, hydro, gas and nuclear and tougher policies to cut air pollution.
In doing so, it disregards the real reasons for its
declining profits and layoffs — competition from cheap natural gas and sagging Asian
demand for metallurgical
coal.
Flat or
declining Illinois electricity
demand has resulted in an electricity oversupply thanks to Exelon's 11 - plant nuclear fleet, Dynegy and NRG
coal fleets, existing, retrofitted, and new natural gas facilities, and a growing wind portfolio, according to Learner.
In stark comparison, the IEA estimates that
coal demand grew in 2017 after a two - year
decline and forecasts continued
demand growth at least for the next five years, absent a change in policy and market conditions.
This has all led to a
decline in
demand for electricity from the grid and this, in turn, has impacted heavily on the profitability of
coal - fired power stations in particular.
BHP and Rio have been cutting back plans for
coal expansion because of
declining demand and outlook for
coal, caused mostly by a reassessment of China's appetite for imports.
Oil, and even to some extent
coal, is a
declining resource with fairly inelastic
demand.
The share of
coal in the global energy mix is forecast to
decline to 26 % in 2022, from 27 % in 2016 because of sluggish
demand compared with other fuels.
Coal demand is down 4.2 % over the last two years, nearly matching the two - year
decline in the early 1990s, which remains the biggest recorded drop since the IEA started compiling statistics more than 40 years ago.