Wednesday, August 07, 2024

Global Coal Production Hits Record Highs

  • Coal consumption also hit a new high, with China remaining the largest consumer, responsible for over half of the world's coal use.

  • Coal consumption continues to decline in Western countries, reflecting ongoing transitions to cleaner energy sources.

In June, the Energy Institute released the 2024 Statistical Review of World Energy. The Review provides a comprehensive picture of supply and demand for major energy sources on a country-level basis. Each year, I do a series of articles covering the Review’s findings.

In three previous articles, I discussed:

Today I will discuss trends in coal production and consumption.

Overview

In 2023, global coal production reached a record high of 179 exajoules (EJ), surpassing the previous year’s peak. The Asia Pacific region contributed nearly 80% of the global output, primarily driven by Australia, China, India, and Indonesia, which together accounted for 97% of the region’s production.

Notably, China alone produced just over half of the world’s total coal. In contrast, coal production in North America, Southern & Central America, Europe, and the Commonwealth of Independent States declined compared to 2022.

Global coal consumption also hit a new high, exceeding 164 EJ for the first time. This represented a 1.6% increase from 2022, a growth rate seven times higher than the average over the previous decade. China remained the largest consumer, responsible for 56% of global coal use. China’s coal consumption increased by 4.7% in 2023, more than four times the country’s 1.1% average coal consumption growth rate of the past decade.

For the first time, India’s coal consumption in 2023 surpassed the combined consumption of Europe and North America. Meanwhile, coal consumption in both Europe and North America dropped below 10 EJ each, marking their lowest levels since 1965.

Coal Consumption

Coal Consumption 1965-2023. ROBERT RAPIER

Additionally, coal prices fell significantly from the record highs of 2022, with an average decrease of 46%. European delivered prices settled around $130 per metric ton, while prices in Asia averaged about $125 per metric ton.

The Top Producers

China dominates the world’s coal production, and Asia Pacific countries are well-represented in the Top 10.

Top 10 Coal Producers

Top 10 Coal Producers in 2023. ROBERT RAPIER

“Change” reflects the percentage change from 2023.

The Top 10 coal producers in 2023 were the same as a year before, except Mongolia replaced Poland on the list.

The Top Consumers

The Top 10 consumers are the same names as a year ago, with some movement in the rankings of the bottom half of the list.

Top 10 Coal Consumers

Top 10 Coal Consumers in 2023. ROBERT RAPIER

Notably, the only countries in the Top 10 that increased coal consumption in 2023 were in the Asia Pacific region. Coal consumption continues to decline in western countries.

Conclusions

In conclusion, the 2024 Statistical Review of World Energy highlights the major trends and shifts in global coal production and consumption. With Asia Pacific dominating coal production, led by China, India, Australia, and Indonesia, the region remains a central player in the global coal industry.

Notably, China’s production and consumption have reached unprecedented levels, further solidifying its role as the world’s largest coal producer and consumer. India’s rising consumption, surpassing the combined totals of Europe and North America, underscores the shifting dynamics in global energy use. Meanwhile, coal consumption continues to decline in Western countries, reflecting ongoing transitions to cleaner energy sources.

These trends underscore the evolving landscape of global energy markets and have major implications on the ability of the world to control carbon emissions. Because coal is the most carbon-intensive of the fossil fuels, it is imperative to tackle rising coal consumption in order to stem the ongoing rise in carbon emissions.

By Robert Rapier

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