US Coal Exports
Exports Economic Contributions Report
Jul 22 2017

U.S. Coal Finds Footing In European Markets (Oil and Gas 360)

Posted in All News, Asia

U.S. Coal Finds Footing In European Markets

U.S. responsible for 40 percent of the world’s new gas production by 2022: IEA

A report by the EIA indicated that coal exports—for both steam coal, used for power generation, and metallurgical coal, used for refining steel—have increased by 58 percent from Q1 of 2016 to Q1 of 2017. The majority of the increase was in steam coal, which grew by 6 million short tons (MMst).

The majority of the coal was shipped from ports on the Atlantic Coast and Gulf Coast. The U.S. exported a total of 10.135 million short tons of steam coal during Q1. Steam coal exports were bound largely for European markets—which consumed approximately 50 percent of the U.S.’ total steam coal exports in Q1, 2017.

Out of the approximately 5.108 million short tons of steam coal exported to Europe, the Netherlands consumed approximately 2.530 million short tons—a little less than 50 percent.

Asian markets consumed approximately 31 percent of the total U.S. exports, with South Korea, India, and Japan making up the bulk of the demand.

According to a June report by the IEA, global natural gas demand will increase by 1.6 percent by 2022—with China fueling 40 percent of that growth. On the other end of the spectrum is the U.S., which is expected to produce 40 percent of the world’s new gas production out to 2022.

The IEA believes that by 2022, despite growth in domestic gas demand, the U.S. will export over half of its growing production in the form of LNG.

The EIA’s quarterly gas report indicated that U.S. natural gas exports via pipeline—which account for 92 percent of total gas exports—increased by 30 percent to 2,315 Bcf in 2016. LNG exports were accomplished through the Sabine Pass LNG terminal, which was completed in 2016 and was the only operational LNG terminal in the Lower 48 as of June 29th, 2017. Four more LNG terminals are schedule for completion by 2021—and will have a combined export capacity of 9.2 Bcf per day.

LNG exports—which totaled 187 Bcf during 2016—were directed to markets in 18 countries, of which exports to Chile, Mexico, and China accounted for approximately 40 percent of the total volume.

The U.S. imported only 9,850 thousand short tons of coal in 2016—a decrease of about 13 percent from 2015 imports. Natural gas imports increased by 11 percent with the vast majority—97 percent of U.S. gas imports—coming through pipelines from Canada.

See article here.

  • “The fact that we’re no longer in the age of energy scarcity – that we’re in the age of energy abundance – positions the United States in a totally different place. This gives access to affordable, reliable energy in the United States, and gives the U.S. a major competitive advantage.”
    – Dave Banks, Special Assistant to President Donald Trump for International Energy, June 2017
  • “It is in the national interest to promote clean and safe development of our Nation's vast energy resources, while at the same time avoiding regulatory burdens that unnecessarily encumber energy production, constrain economic growth, and prevent job creation. Moreover, the prudent development of these natural resources is essential to ensuring the Nation's geopolitical security.”
    – Executive Order on Promoting Energy Independence and Economic Growth, March 28, 2017
  • “Historically, U.S. companies seeking to expand their revenues focused first on increasing their number and share of U.S customers. For years, this focus served as a winning strategy for many of the most successful U.S. companies. Today, global economic trends make clear that successful companies are those that reach and sell to consumers outside U.S. borders and around the globe.”
    — 2011 National Export Strategy, U.S. Trade Promotion Coordinating Committee
  • “Federal regulatory agencies should not require climate change studies in the course of their permitting processes for proposed facilities. Coal will be consumed around the world regardless of U.S. trade policy. The only question is whether the coal is produced here in North America, where environmental standards are high, or elsewhere.”
    — U.S. Senator Lisa Murkowski, January 7, 2014
  • “At present 19% of the world’s population, 1.3 billion people, lack access to electricity and on New Policy Scenario projections there will still be 1 billion people without such access in 2030. To meet the UN Millennium Development Goal of eradicating extreme poverty by 2015, 395 million more people need access to electricity. There is a strong correlation between electrification and improvement in the United Nations’ Human Development Index.”
    — International Energy Agency, Coal Industry Advisory Board
  • “Access to electricity is strongly correlated with every measurable indicator of human development”
    — Berkeley Science Review, 2008

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