The coal industry in the United States is facing a faster decline due to the coronavirus pandemic. The lockdown has forced coal miners in Pennsylvania, Illinois and Virginia to suspend operations temporarily, while some others only employ their workers two or three days a week. Producers in the Powder River Basin, which accounts for 40% of national output, are staggering shifts and running more buses to transport their workers, following the physical distancing measures.
Americans are now stuck in their homes, increasing household demand for electricity. However, it cannot offset the drop in electricity demand from offices, schools, and other public places. Even before the pandemic, the sector has faced fierce competition from the cheaper natural gas and renewable sources which demand continue to rise as the world looks to combat climate change.
In January the US coal production was expected to fall 14% in 2020. With the coronavirus and a mild winter, the drop is now forecast to be as much as 25%, falling to the lowest level in 55 years. Since 2015, six of the top seven US coal companies have filed for Chapter 11 bankruptcy. Now, analysts expect more firms to follow suit.
Congress has so far shown little willingness to approve $822 million in federal assistance requested by the National Mining Association last month to aid miners amid the pandemic. The $2 trillion coronavirus relief bill also does not include the coal industry as it prioritizes more on small businesses.
