Show BUSINESS r i STOCK MARKET COAL CAL INDUSTRY OUTLOOK Although this country today is in a tenuous position with respect to reserves of oil and gas the United States Stales does docs hold holda a dominant worldwide position in coal cool About one-half one of world reserves of coal are located in North America and the bulk of these are in this country Including including including in In- Alaska Figures on coal reserves stagger the imagination It is estimated that world reserves are around 66 trillion tons Considering all fossil fuel reserves oil represents about four percent and natural gas three percent leaving coals coal's share at an overwhelming 93 percent At current usage rates by the year 2000 the world will have devoured 87 percent of its oil backlog 73 percent of its natural gas but only 2 percent of its coal Thus it is apparent that coal will be around for hundreds of years by which time new sources of energy will have been developed Production Laggard While coal is abundant output of bituminous fuel shows a flat growth pattern compared with the other two major fuels In 1920 production of coal was million net tons In 1970 50 years later million tons were produced In the same period crude oil production went from million to 35 billion barrels and natural gas from million to 22 billion cubic feet Hence while demand for coal has been stable this could change as the energy crisis wears on Several limiting factors have hindered progress in coal despite good advances in mining technology In one phase of the industry strip mining environmentalists have been been strong obstructionists often oCten with reason Strip mining accounts for about half of all coal production and is accomplished by removing surface overburden to expose veins of coal which are then mined In theory the the overburden will be replaced and the land restored to usable condition Unfortunately this has not always been done and huge sections of Appalachia resemble the surface of a barren planet and may never again be productive Underground mining also has its problems It is dangerous and unattractive Black lung disease is a serious occupational occupational occupational oc oc- oc- oc hazard and there is present ever-present danger of explosions and cave Several mine disasters in recent years have resulted in rigid safety regulations limiting output and in some cases closing unsafe mines But the technology of new mining machines have helped replace declining manpower and net production per man has quadrupled in the 1970 1920 period Where Coal Goes Of million tons of coal produced in 1971 in this country the greater part 59 percent was devoted to the creation of electric power by utility companies Coking coal a key ingredient in iron making took 15 percent while general manufacturing took 12 percent We export 10 percent of production mostly metallurgical coal while negligible amounts went into steel mills and retail use It is estimated that coal customers both here and abroad will consume some million million tons of U. U S S. S bituminous in the year ahead This is about six percent more than was used in 1973 Production is scaled at million tons leaving a 9 ton million-ton gap to be filled from stockpiles This points up the problem that has been chronic in the industry for years namely the lack of ability to tomake tomake tomake make meaningful advances in production to meet rising demand Mine Workers Union Coal progress could be further limited by the outcome of this years year's labor negotiations The United Mine MineWorkers MineWorkers MineWorkers Workers has undergone a change of command and the new president has promised reform leadership for the workers Some of the otherwise commendable goals proposed could prove costly to coal operators and ultimately to the coal user and the consumer Key issues are in the areas of improved safety standards and increased welfare and retirement benefits Hopefully in return coal companies will get freedom from costly wildcat work stoppages and labor stability in an industry important to current energy needs |