US EIA Expects Record-Low 2024 Coal Exports, Anticipating a 9% Drop
- 10-Jan-2024 2:31 PM
- Journalist: Sasha Fernandes
In recent assessments, the US Energy Information Administration (EIA) has adjusted its 2024 coal export projection, revealing a notable 9% decrease from the previous year's exports. This adjustment highlights the ongoing transformations within the energy landscape.
Total coal consumption is estimated to reach 391.3 million st in 2024, representing a 1.6% increase from the previous month's projection. However, this uptick is contrasted against an anticipated 8.4% decline in coal consumption for the electric power sector, reaching an all-time low of 351.9 million st in 2024. Looking ahead to 2025, electric power sector coal consumption is projected to further decrease to 322.2 million st, aligning with the overarching trend of reduced reliance on coal for electricity generation.
Nominal average delivered coal prices are expected to stand at USD 2.49/MMBtu in 2024, signalling a slight decrease from the 2023 figure of USD 2.52/MMBtu. The EIA foresees a marginal additional reduction to USD 2.44/MMBtu in 2025, reflecting ongoing shifts in market dynamics and pricing for coal.
In a noteworthy development, renewable energy sources are projected to see a substantial increase, climbing from 21.8% in 2023 to 24% in 2024 and further to 25.9% in 2025. This trajectory positions renewable energy as a dominant force, surpassing coal in power generation. As the energy landscape evolves, this shift underscores the increasing prominence and competitiveness of renewable sources in the US energy mix.
Nuclear generation is expected to maintain stability, hovering around 19.2-19.3%, emphasizing its consistent role in the overall energy portfolio. Conversely, natural gas generation is anticipated to experience a decline, moving from 41.9% in 2023 to 41.1% in 2025. These shifts in the contributions of different energy sources further emphasize the changing dynamics of the energy sector.
Despite the decline of coal, the natural gas sector continues to demonstrate growth, with liquefied natural gas (LNG) exports projected to rise by 4.4% to 12.36 Bcf/d in 2024 and a further increase to 14.42 Bcf/d in 2025. This underscores the resilience and expansion of the natural gas industry, even in the face of coal's diminishing role in the energy landscape.
The EIA's comprehensive outlook for the energy sector in the coming years reflects a multifaceted landscape marked by a decline in coal exports, historic lows in coal production, and significant shifts towards renewable energy sources and natural gas. The evolving dynamics underscore the industry's adaptability and the continued prominence of alternative energy options in the pursuit of a more sustainable and diversified energy portfolio.