US Coal Industry: Porter’s Five Forces Analysis
Coal has been an energy source for hundreds of years in the United States. It has helped to provide many basic needs, from energy for domestic heating and cooking, to transportation for people, products, and raw materials, to energy for industrial applications and electricity generation.
Almost all coal produced in the US is used to make electricity. Coal also plays a key role in industries such as steel, cement and paper. US coal production totaled 1,084.4 million short tons last year. Wyoming continued to be the largest coal-producing state with 442.5 million short tons, 2.6% higher than the 2009 total of 431.1 million short tons). The demand for coal is dominated by its use as a fuel for power generation, in particular, metallurgical coal is experiencing a surge in interest as companies are scrambling to meet demand for steel overseas.
Coal is mined in 26 states in the US. Wyoming mines the largest amount of coal, followed by West Virginia, Kentucky, Pennsylvania, and Montana. Coal in the US is mainly found in three large regions: the Appalachian Coal Region, the Interior Coal Region, and the Western Coal Region (includes the Powder River Basin). As increasing amounts of US produced coal of all types and specifications is sold into the ever-expanding global marketplace, buying, selling and determining a price for each different type of coal becomes increasingly more complex.
In order to understand the profitability and the dynamics of competitive structure of the coal industry in the US, Taiyou Research presents a Porter's Five Forces Analysis of the Coal Industry in the United States.
Michael Porter's Five Forces Model is one of the most effective analytical model for understanding and analyzing the competitive landscape in an industry. The model analyzes the bargaining power of buyers and suppliers; the competitive rivalry in the industry; the threat of new entrants and the threat of substitutes for the particular industry – in this case, coal faces the threat of substitution from the various renewable energy sources that are fast becoming popular today.
In our report, apart from the Porter’s Five Forces Model Analysis of the industry, we also analyze the basics of coal, including the various uses and types of coal, how coal is formed, and many other factors impacting the global coal industry. We also provide a brief profile of the coal industry in the United States, looking at the market statistics, coal trade, coal reserves and coal resources.
Almost all coal produced in the US is used to make electricity. Coal also plays a key role in industries such as steel, cement and paper. US coal production totaled 1,084.4 million short tons last year. Wyoming continued to be the largest coal-producing state with 442.5 million short tons, 2.6% higher than the 2009 total of 431.1 million short tons). The demand for coal is dominated by its use as a fuel for power generation, in particular, metallurgical coal is experiencing a surge in interest as companies are scrambling to meet demand for steel overseas.
Coal is mined in 26 states in the US. Wyoming mines the largest amount of coal, followed by West Virginia, Kentucky, Pennsylvania, and Montana. Coal in the US is mainly found in three large regions: the Appalachian Coal Region, the Interior Coal Region, and the Western Coal Region (includes the Powder River Basin). As increasing amounts of US produced coal of all types and specifications is sold into the ever-expanding global marketplace, buying, selling and determining a price for each different type of coal becomes increasingly more complex.
In order to understand the profitability and the dynamics of competitive structure of the coal industry in the US, Taiyou Research presents a Porter's Five Forces Analysis of the Coal Industry in the United States.
Michael Porter's Five Forces Model is one of the most effective analytical model for understanding and analyzing the competitive landscape in an industry. The model analyzes the bargaining power of buyers and suppliers; the competitive rivalry in the industry; the threat of new entrants and the threat of substitutes for the particular industry – in this case, coal faces the threat of substitution from the various renewable energy sources that are fast becoming popular today.
In our report, apart from the Porter’s Five Forces Model Analysis of the industry, we also analyze the basics of coal, including the various uses and types of coal, how coal is formed, and many other factors impacting the global coal industry. We also provide a brief profile of the coal industry in the United States, looking at the market statistics, coal trade, coal reserves and coal resources.
Contents
1. EXECUTIVE SUMMARY2. BASICS OF COAL
2.1 Introduction
2.2 How is Coal Formed?
2.3 Types of Coal
2.4 Uses of Coal
2.4.1 Coal as Fuel
2.4.2 Coking Coal
2.4.3 Producing Syngas from Coal
2.4.4 Producing Liquid Fuels from Coal
2.4.5 Industrial Processes
3. PROFILE OF THE GLOBAL COAL INDUSTRY
3.1 Industry Definition
3.2 Industry Statistics
3.3 Market Value & Volume
3.4 Coal Production
3.5 Coal Consumption
3.6 Industry Segmentation
3.7 Energy Security & Coal
3.8 Industry Outlook
4. US COAL INDUSTRY: PORTER’S FIVE FORCES ANALYSIS
4.1 Introduction
4.2 Power of Buyers
4.3 Power of Suppliers
4.4 Competitive Rivalry
4.5 New Entrants in the Industry
4.6 Presence of Substitutes
5. GLOSSARY
LIST OF FIGURES
Figure 1: US Primary Energy Use by Fuel 2030
Figure 2: US Coal Consumption by Sector, 2030
Figure 3: US Coal Reserves
Figure 4: US Coal Quality
Figure 5: Delineation of US Coal Resources and Reserves (Billion Short Tons)
Figure 6: Coal Reserves, Coalfields and Ports of Shipments in the US
Figure 7: Porter's Five Forces Analysis of the US Coal Industry
LIST OF TABLES
Table 1: Classification of Coal
Table 2: U.S. Coal Production, 2005-2011 (Thousand Short Tons)
Table 3: US Coal Production by State (Thousand Short Tons)
Table 4: US Coke and Breeze Production at Coke Plants (Thousand Short Tons)
Table 5: U.S. Coal Exports and Imports, 2005-2011 (Thousand Short Tons)
Table 6: Average Price of U.S. Coal Exports and Imports, 2005-2011 (Dollars per Short Ton)
Table 7: Quantity and Average Price of U.S. Coal Imports by Origin, 2005-2011 (Thousand Short Tons and Dollars per Short Ton)
Table 8: U.S. Coal Exports (Short Tons)
Table 9: Average Price of U.S. Coal Exports (Dollars per Short Ton)
Table 10: U.S. Steam Coal Exports (Short Tons)
Table 11: Average Price of U.S. Steam Coal Exports (Dollars per Short Ton)
Table 12: U.S. Metallurgical Coal Exports (Short Tons)
Table 13: Average Price of U.S. Metallurgical Coal Exports (Dollars per Short Ton)
Table 14: U.S. Coke Exports (Short Tons)
Table 15: Average Price of U.S. Coke Exports (Dollars per Short Ton)
Table 16: US Coal Imports (Short Tons)
Table 17: Average Price of U.S. Coal Imports (Dollars per Short Ton)
Table 18: U.S. Coke Imports (Short Tons)
Table 19: Average Price of U.S. Coke Imports (Dollars per Short Ton)
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