According to preliminary statistics from the US Energy Information Administration (EIA), coal production in the United States fell by 10% in 2015 to about 900 Mt, reaching a record low since 1986. The drop in coal production was linked to an increased competition from gas in the power generation sector, lower international coal demand (especially from China but also from Europe) and environmental regulations.
Sinking gas prices at the Henry Hub (-40% on average between 2014 and 2015) prompted power generators to turn to gas to the detriment of coal. In April 2015, gas-fired electricity generation surpassed that of coal-fired generation on a monthly basis for the first time in history (it exceeded again coal-fired generation over the July-October period). Coal consumption from the power sector could have reached its lowest level since 1988.
Coal exports also fell in 2015, due to a lower demand from Europe (demand from the United Kingdom and Italy nearly halved in 2015), while exports to China collapsed from 8.3 Mt in 2013 to less than 0.5 Mt in 2015. Overall, US coal exports are estimated to have declined by 21% to 77 Mt.
Coal production in the Central Appalachian Basin was 40% below its annual average level over 2010-2014, due to difficult mining geology and high operating costs. In three other main production areas, namely the Northern Appalachian Basin, Rocky Mountain region, and Powder River Basin, 2015 production was 10% to 20% below the average levels over 2010-14, while its was 8% higher than production levels over 2010-14 in the Illinois Basin.