The Dirty Glory Days are Over: Signs of Peak ‘Cheap’ Coal

The United States can no longer claim to be “The Saudi Arabia of Coal”. That’s according to an analysis by the Wall Street Journal, which states that the days of cheap coal in America are nearly over. It’s a major blow to the coal industry, which has sought to defend itself against the advent of clean energy with the argument that coal is still a reliable long-term energy solution.

From the Wall Street Journal, via NRDC Switchboard:

No one says the U.S. is facing a coal shortage. But the emerging ranks of “peak coal” theorists argue that current production levels may be unsustainable and, if anything, create a false sense of security. David Rutledge, an electrical-engineering professor at the California Institute of Technology who has studied global coal production, figures the U.S. has about half as much recoverable reserves as the government says, which would work out to about 120 years’ worth.

In the field, challenges are becoming more apparent. Mining companies report they have to dig deeper and move more earth to extract coal from aging mines, driving up costs. Utilities have grown skittish about whether suppliers can ship promised coal on time. American Electric Power Co., the nation’s biggest coal buyer, says it has stepped up its due diligence to make sure its suppliers can make deliveries after some firms missed shipments last fall. It even bought a mine to lock down supplies.

Of course, coal advocates claim that concerns about future supplies are overblown, but the Obama administration isn’t taking their word for it. The Energy Information Administration, part of the Department of Energy, intends to create a new coal baseline from which it will begin its annual subtraction as soon as possible, according to a member of the energy analysis team.

Peak “cheap” coal doesn’t equal peak coal, and we certainly couldn’t count on peak coal happening before the planet gets to an irreversible stage of climate change. But if coal is going to get more expensive anyway, there goes the coal industry’s strongest argument for remaining the United States’ top source of energy indefinitely.

Link [The Wall Street Journal] via [NRDC Switchboard]
Photo credit: Wikimedia Commons

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