Economics - Economic and Competitive Position of Illinois Coal

Illinois supplies coal to seven states in the Upper Mississippi Valley —Illinois, Missouri, Iowa, Minnesota, Wisconsin, and portions of the Dakotas, Nebraska and Kansas. In this same area are marketed large quantities of coal from West Virginia, Kentucky, Pennsylvania, and elsewhere; fuel oil from the crude petroleum supplies of the Mid-Continent fields, and natural gas from Louisiana, Kansas and the Texas Panhandle. The boundaries of this "Illinois coal-market area" are determined by competition from other coal fields and from other forms of fuel. Within the area so described 90 per cent of Illinois coal is marketed. Thus in the Southwest, an abundance of fuel-oil supplies and natural gas dominates the market almost to the exclusion of coal. The westward movement of Illinois coal in Kansas, Nebraska and the Dakotas is met by an eastward flow of high-grade coals from Colorado, Wyoming and Montana. In the lake-shore counties of Minnesota and Wisconsin, the market is dominated by Appalachian coals, cheaply carried over the Great Lakes and reaching the ports of Lake Michigan and at the head of Lake Superior. Illinois coals find their largest market in the southern and western sections of these two lake states. Only small quantities of Illinois coals are shipped east of the state line. This market area is occupied entirely by the neighboring coal fields of Indiana and the Appalachian coal fields in Ohio, West Virginia, Kentucky and Pennsylvania. Illinois Coal-makket Area , With these factors in mind, the map of the Illinois coal-market area may be drawn. Within this boundary is the area that is logically and economically served by Illinois coal. However, this area is by no means exclusively dependent upon coal from Illinois mines. The preponderance. of Appalachian coal in Wisconsin and Minnesota has been mentioned. Appalachian coal, also, moves in large tonnages into Illinois itself, particularly the Chicago district. The Iowa and Missouri local coals share the market with imported coal from Illinois; throughout the market area, fuel oil and natural gas are important factors in the total energy supply.