Global Energy Supply Shortage Leads to First Increase in US Coal Usage in 8 Years

"Green Policy" Biden Administration Expected to Increase Coal Use
Coal Demand Surges... Industry Says "Coal Is Making a Comeback"
Long-Term Coal Use May Decline Due to Climate Change Response Policies

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] As the global energy supply shortage increases coal demand, it is expected that the United States' coal consumption will surge by 23% this year compared to the previous year. This marks the first rebound in eight years since 2013, indicating that the U.S. government, which is promoting eco-friendly policies to combat climate change, is facing a challenging situation.

On the 12th (local time), Bloomberg News reported this, stating, "There are signs that coal fuel is making a comeback under the Joe Biden administration."

Previously, during the Donald Trump administration, which promoted fossil fuel-friendly policies, coal consumption had sharply declined by 36%.

However, as electricity demand rebounds following the COVID-19 pandemic and natural gas prices soar due to the global energy crisis, demand is shifting toward relatively cheaper coal.

According to data from the U.S. Energy Information Administration, coal consumption in the U.S. has steadily decreased since 858 million tons were used in 2013, dropping nearly by half to a record low of 436 million tons last year.

However, authorities forecast that coal consumption in the U.S. will rebound to 537 million tons this year.

Bloomberg News reported that the share of coal among U.S. energy sources is expected to rise from a record low of 20% last year to 24% this year.

Thus, under the Biden administration, which is actively implementing eco-friendly policies such as transitioning to renewable energy, coal usage is actually increasing again.

This is analyzed as a signal that government policy directions and the market are moving differently.

Jeremy Fisher, senior advisor at the climate change research organization Sierra Club, said, "In the short term, the market will win."

Bloomberg News reported, "The global energy crisis is driving coal demand worldwide," adding, "Mining companies are extracting as much coal as they can."

Rich Nolan, CEO of the National Mining Association, emphasized, "The market is responding. Coal is making a comeback."

Especially with electricity demand expected to surge significantly during the upcoming winter, Bloomberg News reported that coal consumption is likely to continue rising through next year.

Some predict that coal demand will calm down again. Given the strong likelihood that climate change response policies in the U.S. and other countries will not waver, long-term policies to transition from coal and other fossil fuel power generation to renewable energy are expected to reduce coal demand.

Bloomberg News noted, "The reduction in coal use during the Trump administration, which emphasized fostering the coal power industry, was also due to the uncertain regulatory environment surrounding coal."

Kara Botof, an analyst at Sierra Club, said, "Policy is inevitably important," and predicted that if eco-friendly policies are inevitable, coal demand will decrease in the long term. Dennis Wamsted, an analyst at the Energy Economics Institute, also emphasized, "The transition (to renewable energy) has already begun."

This content was produced with the assistance of AI translation services.