Two factors are especially germane in answering this question. First, domestic coal consumption is decreasing. Diverse additional factors are, in turn, responsible for decreased coal consumption in the U.S., from increased environmental compliance
costs for coal-fired electrical power generation to low natural gas prices. The figure below shows that, earlier in 2012, electrical power generated by natural gas equaled that generated by coal for the first time in U.S. history.

Conversely coal consumption abroad, particularly in Asian countries, is increasing.
While Japan, South Korea, and Taiwan are currently Asia's largest coal consumers,
the Energy Information Administration's International Energy Outlook 2011 projects
that China and India will become Asia's leading coal consumers by the year 2035
(see figure below). The increase in Chinese coal consumption by 2035 is especially noteworthy, but it is important to appreciate that the Energy Information
Administration also projects that China will contribute two-thirds of the increase in
world coal production between now and 2035. Thus, it appears that China will
meet at least some of its increase in coal consumption with domestic production,
thereby reducing its need to import coal.

The U.S. is currently a minor player in the world coal export market, as the figure
below shows. While the Energy Information Administration forecasts that Australia
will overtake Indonesia as the world's leading coal exporter by 2035, it also projects
that the U.S. share of world coal exports will remain small. Three factors could
increase the size of this role:

1.	Most large coal exporters have expansion of coal mining and coal exporting terminal capacity planned, but railway transportation of coal from mine to terminal appears limiting in most cases. If transportation imposes a bottleneck for the world's largest coal exporters, a larger role for the U.S. could emerge.
2.	The Panama Canal expansion, scheduled for completion in 2015, will accommodate larger vessels and thereby create potential for additional U.S. coal exports to Asia.
3.	West Coast coal exporting terminals could make Powder River basin coal cost-competitive with the world's largest exporters by reducing transportation costs to Asian markets. This possibility is the focus of this webpage.