The PRB continues to experience a prolonged declining domestic market. Our analysis suggests some improvement over the next year with demand increasing by ~30 million tons; however, we envision the domestic U.S. and Canadian markets declining by more than 150 million tons by 2034.
PRB producers have reduced production by about 80 million tons/year since 2008. Production in 2014 is slated at around 414 million tons. In 20 years, PRB production could drop below 300 million tons.
In our 2013 report Hanou Energy successfully predicted lower stockpiles, a tightening of the market and a $3-$4/ton price spike to occur in early 2014. However, rail transportation issues, a cool summer and relatively low gas prices has taken the wind out of the early 2014 price spike. Prices again have dropped to levels seen in 2013. So, what's it going to take for prices to spike again? When will it happen?
We don't have all of the answers, but we do have many observations and predictions to share with our readers. Read on.
Prepared as a multi-client consulting study, this investigation is the most comprehensive review available on the PRB and Bull Mountain coalfield's coal geology, reserves, quality, historic, current and future coal production, coal control/ownership, transportation infrastructure, strip ratios, mine productivity and production costs for all active and proposed mines. Also included in this study is a historical analysis of PRB price trends and our twenty year demand and price forecast for PRB coal.
With this report the reader can:
The Powder River Basin Coal Supply, Demand and Price Trends 2014–2034 is available in hard copy.
Please call John Hanou at (410) 279-3818 or email at firstname.lastname@example.org if you have any questions.