The Shift to Western Coal

The U.S. coal industry has taken on an increasingly important role in recent years as a source of energy. The Organization of Petroleum Exporting Countries (OPEC) has increased the price of oil 15- fold since 1973, making coal a lower-priced alternative. For example, the delivered cost of oil purchased by electric utilities in 1982 has averaged $4.81 per million Btu’s, while coal has cost $1.65 per million Btu’s. The prospect that oil will become more scarce as energy demand grows also increases coal’s attraction, because it is a much more abundant mineral. Moreover, the embargo that some OPEC nations imposed on oil shipments to the United States in 1973-74 made Americans realize the importance of this nation’s domestic coal reserves.