Analyzing markets can be dizzying, and the price of coal is a prime example of that. It’s been up and down, over and out, and all around. The same is true for the shares of many coal companies. Over the years, they’ve been greedily purchased by savvy investors, frantically unloaded, and sometimes used as wallpaper by investors in despair. What happens next? Will they regain investor favor, or fall to the side as newer technologies are adopted?
A review of some data and the historical role that coal has played—and still plays—in the economy will help answer these questions. For one thing, the U.S. has the world’s largest reserves of coal. True, not all of it is recoverable. But based on coal production in 2022, “The recoverable coal reserves in the U.S. would last about 422 years,” states the U.S. Energy Information Administration. “And recoverable reserves at producing mines alone would last about 20 years.”
Roller Coaster–Plus
America’s enormous supply is just one of coal’s strengths. According to AI Overview, compared to other sources of power, including oil and natural gas, coal is also a more affordable fuel for generating electricity.
Another point in coal’s favor is reliability—something that cannot be said about some environmentally friendly technologies. Unlike wind or solar power, “Coal-fired power plants provide a constant, on-demand energy supply that is not dependent on weather conditions,” AI Overview notes. “And its stable energy output can also balance the intermittent nature of renewable energy sources.”
And there’s more. It generates significant employment and much-needed tax revenues in mining communities. The low-cost power it provides not only helps established businesses but also attracts new ones. Additionally, the infrastructure for coal power plants is already in place in many areas of the world, which makes using coal relatively easy.
Stayin’ Alive
For many decades, coal has played a crucial role in energy production in the U.S. and other countries. It still does in both the U.S. and global economies.
Currently, coal generates 16.2% of the electricity used in America, according to the U.S. Energy Information Administration. But looking back to 1990, coal produced 52% of America’s electricity. If coal has so many benefits, why has its use declined so significantly?
The answer involves a combination of factors: health, economics, environment, and technology.
The coal industry, like many others, has changed a great deal over the years. For example, on October 27, for the first time ever, wind and solar generated more electricity than coal.
Health issues associated with coal include respiratory illnesses like black lung disease and COPD from mining dust. The Climate Council Australia website states that “Burning coal emits toxic and carcinogenic substances into our air, water and land, severely affecting the health of miners, workers and surrounding communities.” Some cardiovascular diseases, neurological conditions, and developmental problems are also linked to coal.
According to AI Overview, technologies like solar, wind, hydropower, and nuclear energy can produce electricity that is cheaper and cleaner than coal. The cost of renewable power is declining and has become the cheapest source of new energy. Solar and wind produce essentially no greenhouse gases and do not emit air pollutants such as sulfur dioxide and nitrogen oxides. Nuclear energy is a zero-emission power source that generates electricity without the harmful byproducts of fossil fuels. But there is no perfect fuel at this time.
In This Corner…
Coal has some serious competition. But anyone who says that coal’s days are numbered is mistaken. In fact, for the time being, it appears that coal is not only holding its own but is gaining ground—an opinion expressed by economist Stephen Moore, who points to recent developments in the industry and to compelling statistics.
The U.S. is not the only country blessed with an abundance of coal; many others also have enormous reserves and are using them aggressively. As a result, the amount of coal being used by power plants is surprisingly high and increasing.
The Coal Mid-Year Update, a report from the International Energy Agency, shows that in 2024, global coal demand increased to a new all-time high of around 8.8 billion tons, up 1.5% from 2023.
The statistics Moore cites are striking. In 2024, China alone added more than 500 TWh of coal-fired power generation—the equivalent of half the output of Japan’s entire electrical grid. More than half of China’s power now comes from coal. China has more coal-fired power generation than any other nation, and other Asian countries are increasing their use of coal as well.
Early in 2025, U.S. Energy Secretary Chris Wright told Bloomberg TV that “Coal-fired power plants will remain the backbone of President Trump’s reindustrialization of America…. Coal has been the largest source of global electricity for nearly 100 years and it will be for decades to come.” According to Zero Hedge, she emphasized that shuttered coal plants will be restarted to ensure affordable and reliable electricity for decades.
According to financechart.com, the best-performing coal stock in the last five years was ALLETE, which had a total return of 62.36%, followed by American Electric Power, Andersons, Arq, and Cabot. With the exception of Andersons, their 10-year returns were even better. These returns are impressive even considering the strong bull market.
It’s always easier to handicap a race in hindsight. The tricky part is figuring out what happens next. To an armchair analyst, it appears that coal’s benefits will not stop the adoption of newer energy sources—but newer energy sources will not stop the growing use of coal. Coal is one of the few industries that has lasted for hundreds of years and is still going strong. And there may still be opportunities in it. Your investment advisor may have some that are well-suited to your needs and objectives.
Sources: climatecouncil.org.au; committeetounleashprosperity.com; dictionary.com; eia.gov; financechart.com; theguardian.com; zerohedge.com
Gerald Harris is a financial and feature writer. Gerald can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it.