After falling in six out of seven quarters from mid-2014 to mid- 2016, coal production recently saw a rare increase as a result of rising natural gas prices. The increases in coal production were driven by an increase in coal-fired electricity generation, which occurred as natural gas prices increased.
Among the coal supply regions, the Powder River Basin (PRB) in Montana and Wyoming saw the largest increases. Coal production from other regions, including the Appalachian and Illinois basins, remained relatively flat. However, increased demand for PRB coal was not limited to any geographic region.
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