EIA: U.S. coal stockpiles down as result of natural gas price increases, larger coal draw
A spike in coal-fired electric generation usage in the United States between the frigid months of December 2020 and February 2021 left coal stockpiles at U.S. power plants significantly decreased, according to the U.S. Energy Information Administration (EIA).
A new report from the organization found that nearly 16 million tons of coal were drawn in February 2021 alone, marking the largest monthly coal inventory decrease in a decade. Plants stockpile such coal to prepare for periods of greater demand, which usually occurs in the summer. February, however, brought extreme weather events to Texas and neighboring states, prompting its use.
Coal-fired generation during these months rose significantly, and while weather played a part, so too did the rising prices of natural gas. The nation experienced 16 percent more coal-fired generation in December 2020 and January 2021 than it did in December 2019 and January 2020, with coal displacing natural gas in some markets. The trend continued into February, exacerbated by the weather-caused demand.
Through January 2021, bituminous coal plants possessing an average of 150 days of burn — how long stockpiles would last if power plants received no additional coal. This was a record high, aided by COVID-19-induced reductions to electricity demand. As a result of all these other factors, however, by March, the average days of burn tumbled to 114 days. For subbituminous coal plants, the average days of burn went from 139 days in January to 113 days in March.
