Coal : Exports Reach Record High

Despite a recession that's crippling many US industries, and a UMW strike that wasn't supposed to happen, 1981 was a fairly good year for the coal industry. The big news was record-high exports. Queues of colliers waited for weeks at Hampton Roads, VA, and Baltimore, MD, to load coal destined for Europe and the Far East. Private industry and city governments began scrambling for a share of the export boom, and port developments were planned in nearly every coastal state. Coal exports jumped from about 82 Mt (90 million st) in 1980 to a record 83 Mt (92 million st) in 1981, according to the National Coal Association. NCA projects exports to remain at this level 1982. The following statistics illustrate industry performance in other areas: • Demand by domestic utilities and overseas customers was so strong that total US consumption reached 760 Mt (838 million st) in 1981. DOE predicts another record year in 1982, with consumption forecast at 804 Mt (886 million st). • 1981 production of 730 Mt (805 million st) was just slightly below the record high of 748 Mt (824 million st) in 1980, "a remarkable figure considering that UMW production was shut off for 72 days during 1981," says NCA President Carl Bagge. Production in 1982 should set a new record, 800 Mt (880 million st). • Eastern coal production fell 7.4%, while western production-largely unaffected by the UMW strike-rose almost 10%. NCA says eastern output will rise almost 12% to 538 Mt (593 million st) in 1982, and western production will increase by 6.6% to 266 Mt (293 million st). • Production per manhour is improving. After the strike, weekly production hit the 16 Mt (18 million st) mark and has approached the 18 Mt (20 million st) per week level. •Coal's share of the US electric generation market increased from 51% in 1980 to 53% in 1981. Electric utilities are coal's biggest customer, and their financial situation is precarious. Inflation has thwarted necessary expansion plans, while shifting environmental regulations have played havoc with construction costs. Utilities increased power sales by only 2.5% in 1981; NCA predicts that utility coal use will increase 4% in 1982. The Association's long-range forecast indicates that growth in electricity demand in the immediate future will be much lower than in the 1960s and 70s. Administration Impact Industry optimism following the election of Ronald Reagan and a Republican-dominated Senate didn't survive the year. One bright spot was the appointment of James Watt as Interior Secretary, and his promises to review surface mining regulations and resume leasing. The administration, however, has declined to support federal eminent domain for slurry pipelines and expects port users to foot most of the bill for expansions and improvements. It has also drastically reduced government financial support for synthetic fuels. The outlook for synfuels-one of three major markets for coal-has