Coal consumption reached its lowest level in 35 years in 2017

Coal consumption for the electric power sector demanded 661 million short tons (MMst) of coal in 2017, reflecting the lowest level since 1983, according to a report released by the U.S. Energy Information Administration (EIA).

Further, 2017 was the fourth straight year that U.S. coal consumption, as well as coal shipments by all modes of transportation, dropped. Specifically, about 70 percent of the coal consumed in was shipped either entirely or in part by rail. The other 30 percent was a combination of river barges, trucks, and other methods.

Coal consumption in 2017 was 36 percent lower than it was in 2008 when U.S. coal production reached its highest level.

Also, the amount of coal shipped by rail has declined decreased to 432 MMst in 2017 from 647 MMst shipped by rail in 2008, despite a slight increase in 2016.

Coal shipments by river barge increased to 12 percent in 2017 from 7 percent in 2008. Additionally, the share of deliveries made by truck was at 9 percent in 2017 down from 12 percent in 2008.

Finally, the cost of delivering coal for all transport modes has declined to lower than $40 per ton in 2017. This is about $8.00 per ton lower than it was in 2008, with most of the reduction attributable to declining commodity costs.