Energy
The Decline of Coal in Three Charts
The Decline of Coal in Three Charts
How coal went from hero to zero in just five short years.
The Chart of the Week is a weekly Visual Capitalist feature on Fridays.
There was a time in the not so distant past that coal was the unquestioned all-star of the energy mix.
Just over a decade ago, coal-fired power generated more than 50% of U.S. electricity. Coal is cheap and found almost everywhere, but it’s also extremely easy to scale with. If you need more power, just burn more coal.
However, the decline of coal has been swift and unprecedented. That’s why it is expected that by 2020, only 22% of electricity will be generated from the fossil fuel.
What’s Behind the Decline of Coal?
While there is obvious environmental pressure on miners and utilities in the coal business, the number one coal killer is an unlikely source: hydraulic fracturing and horizontal drilling.
These two technologies have led to a natural gas supply boom, making the United States the top natural gas producer in the world. From 2005 to 2010, natural gas mostly traded in a range between $5-10 per mcf. Today, excess supply has brought it to a range between $2-3 per mcf, making it extremely desirable for utilities.
This year, for the first time ever, natural gas has surpassed coal in use for power generation in the United States. The EIA expects natural gas and coal to make up 33% and 32% respectively in the energy mix for 2016.
How the Mighty Have Fallen
Not surprisingly, shrinking demand has led to a collapse in coal prices.
The decrease in revenues have slashed margins, and now equity in some of the biggest coal miners in the world is almost worthless. Similar to some oil and gas companies, many coal miners accumulated major debt loads when prices were high and demand seemed sustainable.
Now major US coal miners such as Peabody Energy and ArchCoal have been obliterated:
| 2011 | 2014 | 2016 | |
|---|---|---|---|
| Peabody | $19.7 billion | $7 billion | $0.030 billion |
| Arch Coal | $6.0 billion | $1 billion | $0.006 billion |
| Alpha Natural | $10.7 billion | $1.6 billion | $0.003 billion |
| Walter Energy | $8.2 billion | $1 billion | $0.006 billion |
| Total | $44.6 billion | $10.6 billion | $0.045 billion |
The top four miners have lost over $44 billion in market capitalization from their recent peaks in 2011.
That’s an astonishing 99.9% decrease in value, and possibly exemplifies the decline of coal better than anything else.
Environment
Charted: The Safest and Deadliest Energy Sources
What are the safest energy sources? This graphic shows both GHG emissions and accidental deaths caused by different energy sources.
Creator Program
Charted: The Safest and Deadliest Energy Sources
Recent conversations about climate change, emissions, and health have put a spotlight on the world’s energy sources.
As of 2021, nearly 90% of global CO₂ emissions came from fossil fuels. But energy production doesn’t just lead to carbon emissions, it can also cause accidents and air pollution that has a significant toll on human life.
This graphic by Ruben Mathisen uses data from Our World in Data to help visualize exactly how safe or deadly these energy sources are.
Fossil Fuels are the Highest Emitters
All energy sources today produce greenhouse gases either directly or indirectly. However, the top three GHG-emitting energy sources are all fossil fuels.
| Energy | GHG Emissions (CO₂e/gigawatt-hour) |
|---|---|
| Coal | 820 tonnes |
| Oil | 720 tonnes |
| Natural Gas | 490 tonnes |
| Biomass | 78-230 tonnes |
| Hydropower | 34 tonnes |
| Solar | 5 tonnes |
| Wind | 4 tonnes |
| Nuclear | 3 tonnes |
Coal produces 820 tonnes of CO₂ equivalent (CO₂e) per gigawatt-hour. Not far behind is oil, which produces 720 tonnes CO₂e per gigawatt-hour. Meanwhile, natural gas produces 490 tonnes of CO₂e per gigawatt-hour.
These three sources contribute to over 60% of the world’s energy production.
Deadly Effects
Generating energy at a massive scale can have other side effects, like air pollution or accidents that take human lives.
| Energy Sources | Death rate (deaths/terawatt-hour) |
|---|---|
| Coal | 24.6 |
| Oil | 18.4 |
| Natural Gas | 2.8 |
| Biomass | 4.6 |
| Hydropower | 1.3 |
| Wind | 0.04 |
| Nuclear energy | 0.03 |
| Solar | 0.02 |
According to Our World in Data, air pollution and accidents from mining and burning coal fuels account for around 25 deaths per terawatt-hour of electricity—roughly the amount consumed by about 150,000 EU citizens in one year. The same measurement sees oil responsible for 18 annual deaths, and natural gas causing three annual deaths.
Meanwhile, hydropower, which is the most widely used renewable energy source, causes one annual death per 150,000 people. The safest energy sources by far are wind, solar, and nuclear energy at fewer than 0.1 annual deaths per terawatt-hour.
Nuclear energy, because of the sheer volume of electricity generated and low amount of associated deaths, is one of the world’s safest energy sources, despite common perceptions.
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