West Virginia Executive Spring 2021 June 2021 | Page 73

By contrast , the rebound in growth for the West Virginia economy between mid- 2017 and early 2019 can be linked in large part to not only broader improvements in energy demand but also to supply-side factors that have greatly increased the ability to deliver natural gas to consumers in undersupplied regions and industries . For example , surging global demand for metallurgical and steam coal from countries such as India , Ukraine , Brazil and others boosted exported coal tonnage from West Virginia to its highest level since 2012 . After totaling roughly 80 million short tons during 2016 , coal output hovered in the mid-90 million short ton range between 2017 and 2019 . Mining industry payrolls generally followed suit as some idled mines and new mining operations came online to meet growing export demand , rising from less than 12,000 in late 2016 to an average of 14,500 in 2019 .
Unfortunately , the state ’ s coal energy started to show signs of weakness over the second half of 2019 . Production and employment began to decline noticeably during the third and fourth quarters of the year as export demand began to drop and more U . S . coal-fired generating capacity was retired or utilized significantly less in favor of other forms of generation . Moreover , the COVID-19 pandemic produced yet another negative hit to the industry in 2020 as output totaled just below 70 million short tons for the calendar year as a whole — marking the lowest calendar year for tonnage in a non-strike year in more than a century .
Going forward , export demand for both steam and metallurgical coal is expected to improve from currently weak readings as India , Vietnam , Egypt and other countries continue to raise coal consumption to manufacture steel and generate electricity to feed their rapidly expanding economies . However , coal export tonnage from West Virginia is not anticipated to reach the elevated levels that defined much of the mid-2017 to early 2019 time period . As a result , even as new metallurgical coal operations in Barbour County reach full production capacity in 2022 , statewide coal production is not expected to climb much past an annual total of 80 million tons .
Billions of Cubic Feet Per Day 24
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12
8
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Source : Bureau of Business and Economic Research .
Natural Gas Pipeline Outflow Capacity​
Natural Gas
Of course , coal is not the only energy commodity produced within the state , as West Virginia has become an increasingly larger player over the years in U . S . natural gas production . In 2020 , West

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Virginia became the sixth largest natural gas producing state in the nation , with more than 2.5 trillion cubic feet ( Tcf ) of natural gas production for the full calendar year . New pipeline projects have come online in recent years to move
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