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Wednesday, February 10, 2021

Coal production in Central Appalachia hit 37-year low in 2020, but overall production may see a small bump this year

"Coal mines in Central Appalachia produced over a 37-year low 46.04 million short tons in 2020, down 36.7 percent from 72.7 million short tons produced in 2019 and the lowest on record, dating back to 1984, according to U.S. Mine Safety and Health Administration data," Tyler Godwin reports for S&P Global. "The region has seen eight quarterly decreases in the last 10 quarters. Nine of the top 13 mines in Central Appalachia saw quarterly declines in Q4."

Overall though, coal is slated for a small bounce-back from pandemic lows, though it could be smaller than federal analysts previously predicted. "The latest Energy Information Administration estimates show U.S. production rising 9% this year, down from their prior guess of 12%," Ben Geman reports for Axios. That translates to a predicted total of 589 million short tons, and a little more than that in 2022.

Coal is still trending downward in the long-term, but Geman notes that expected increases in oil and coal output in 2021 and 2022 "illustrate an irony. President Biden, who has vowed aggressive steps on climate change, is initially likely to preside over an increase in coal and oil production."

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