Virginia coal production: impacts and projections
Virginia's coal sales have been largely for metallurgical (coking) applications. The met coal market is facing a serious decline. Those suppliers with long-term contracts believe they will not be affected unless force majeure (coercive power) is imposed. Long-term projections, based on a worldwide recovery of the steel industry and the changing technology and economics of steel making, suggest that future sales will be flat. Based on studies of market trade-preferences, evidence suggests that Australia will displace the Unted States as the leading exporter of met coal. The possible requirement that US coal-burning utilities reduce sulfur dioxide effluents may lead to met coal being burned in steam boilers as a measure to avoid installing the more costly flue-gas scrubbers. This requirement, if it becomes law, would improve sales prospects for the central Appalachian coal market. Coal slurries to replace fuel oil in commercial and utility boilers and clean fine coal for chemical feed stocks are other potential new markets totaling 200 million tons per year. In any event, the Virginia coal market is presently an erratic buyers market with more production capacity than demand, and a growing sensitivity to prices resulting from the unstable world economic situation. Our coal suppliers, because of rising mine, railroad, port, and shipping costs, now charge the highest worldwide delivery prices which will make Virginia a residual supplier and possibly vulnerable to more foreign imports. A coal slurry pipeline which will reduce the delivered cost of Virginia's coal and make it more competitive with eastern Kentucky and southern West Virginia coal, of similar quality, will assist the state in maintaining its market share as the market recovers. Although it will not increase the world-market share exported from Hampton Roads, it may increase Virginia's share of that market from 22.8% to 50%.
- Research Organization:
- Virginia Polytechnic Inst. and State Univ., Blacksburg (USA). Virginia Center for Coal and Energy Research
- OSTI ID:
- 6190011
- Report Number(s):
- VPI/CER-3902430; ON: DE83902430
- Country of Publication:
- United States
- Language:
- English
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29 ENERGY PLANNING
POLICY AND ECONOMY
COAL
DEMAND
MARKET
VIRGINIA
COAL INDUSTRY
BOILER FUELS
EXPORTS
FUEL OILS
FUEL SLURRIES
FUEL SUBSTITUTION
SLURRY PIPELINES
WATER
CARBONACEOUS MATERIALS
DISPERSIONS
ENERGY SOURCES
FEDERAL REGION III
FOSSIL FUELS
FREIGHT PIPELINES
FUELS
HYDROGEN COMPOUNDS
INDUSTRY
LIQUID FUELS
MATERIALS
MIXTURES
NORTH AMERICA
OILS
ORGANIC COMPOUNDS
OTHER ORGANIC COMPOUNDS
OXYGEN COMPOUNDS
PETROLEUM PRODUCTS
PIPELINES
SLURRIES
SUSPENSIONS
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015000* - Coal
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294001 - Energy Planning & Policy- Coal
290200 - Energy Planning & Policy- Economics & Sociology