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Coal production rises in second half of 2016, renewing hope for US railways
US COAL production increased in the third and fourth quarters of 2016 after falling in six out of seven quarters, according to the Weekly Coal Report and Quarterly Coal Report and US Mine Safety and Health Administration.
No single commodity is more important to US railways than coal, which accounts for 36.9 per cent of tonnage and 17.2 per cent of revenue, said the Association of American Railroads.
Electricity generation accounts for more than 90 per cent of US coal use. Third quarter warmer-than-usual weather led to increased electricity generation.
This was the highest on record for those three months combined, which resulted in higher consumption of coal compared to the first half of 2016.
In the fourth quarter, even as electricity generation declined, because natural gas prices remained higher than in previous quarters, the natural gas share of electricity generation fell and coal consumption increased.
During December, the coal share of monthly electricity generation surpassed that of natural gas for the first time last year.
Most US coal is consumed at power plants. Coal has dominated US power generation because it is cheapest and rail freight makes that so.
Seventy per cent of the coal delivered to power plants is delivered by rail. Electricity is also generated using other fuels, including nuclear power, wind, solar power, hydroelectric power, and natural gas.
No single commodity is more important to US railways than coal, which accounts for 36.9 per cent of tonnage and 17.2 per cent of revenue, said the Association of American Railroads.
Electricity generation accounts for more than 90 per cent of US coal use. Third quarter warmer-than-usual weather led to increased electricity generation.
This was the highest on record for those three months combined, which resulted in higher consumption of coal compared to the first half of 2016.
In the fourth quarter, even as electricity generation declined, because natural gas prices remained higher than in previous quarters, the natural gas share of electricity generation fell and coal consumption increased.
During December, the coal share of monthly electricity generation surpassed that of natural gas for the first time last year.
Most US coal is consumed at power plants. Coal has dominated US power generation because it is cheapest and rail freight makes that so.
Seventy per cent of the coal delivered to power plants is delivered by rail. Electricity is also generated using other fuels, including nuclear power, wind, solar power, hydroelectric power, and natural gas.
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