AP reported that CASPER, WYO coal production is expected to decline this year after more than a decade of steady, record-setting increases but industry official remains bullish on the energy source.
Wyoming produced 40% of the US's coal in 2008, a record 462 million tonnes. Wyoming coal goes to about 140 utilities in 40 states and coal provides more than half of the nation's electricity.
The US Energy Information Administration predicts that US coal consumption for electricity generation will drop 4.6% this year. The reasons include falling demand and utilities switching to natural gas, nuclear power and renewable energy.
The result could be a 7% drop in US coal production this year and Wyoming is the top coal producing state. But the federal agency predicts the drop will be temporary. Economic recovery next year is expected to boost demand for coal once again.
There has been much discussion about the future of coal as an energy source amid concern that emissions of carbon dioxide and other greenhouse gases contribute to global warming. Proposals to limit carbon dioxide emissions include a cap and trade system in which government would limit and gradually reduce allowable carbon dioxide emissions while allowing companies to buy and sell their emissions rights.
Mr Marion Loomis ED of the Wyoming Mining Association said that despite pending policy changes and economic challenges, he agrees with the long term coal outlook. Mr Loomis said that "I don't see the big reduction that people have suggested. I think Wyoming's coal is going to be well-positioned to compete for many years. Even a massive switch to wind, solar, geothermal and other forms of renewable energy were to occur, coal still would provide the bulk the nation's electricity for decades. Mr Obama talks about doubling renewables. That's easy. Double it, quadruple it and it's still a fraction of energy that this country consumes."
Mr Mike Karbs assistant field manager in the US Bureau of Land Management's Casper Field Office said that some 4 billion tonnes of coal is under lease application in northeast Wyoming's Powder River Basin. About two-thirds of that volume is in the southern part of the basin.
Mr Nick Jones a geologist at the Wyoming State Geological Survey said that he doesn't put much faith in theories that coal production has peaked because of impending carbon dioxide regulation. Mr Jones said that coal companies have proven capable of amazing advances. He said that "Given today's technology and the amount of reserves in the ground in Wyoming today, there's easily 140 years of coal and that's just today's technology."
(Sourced from AP)
