Almost every country worldwide have coal reserves. Around 70 countries worldwide have recoverable reserves of coal. Most of the worlds 1085 billion tons coal reserves are located in the Untied States, Russia, China, India, Australia and South Africa.
Global Coal Reserves (Billion Tonnes)
The United states of America has the worlds largest coal reserves estimated to around 275 Billion tons. China who holds half of the reserves compared to the United states, 126 billion tons, are by far the biggest producer in the world. China produce about twice as much as the United states.
The increase in oil price, growth in demand for liquid fuels is leading to rapid development of Coal to Liquids (CTL) industries in several countries around the world.
Coal prices are lower and more stable than oil prices. CTL can produce oil at $24 - $45 per barrel of oil equivalent with costs of Carbon capture and storage included. In 2006 oil prices reached $78 per barrel and could exceed $90 per barrel by 2030.
At current production levels oil reserves is expected to last only 40 years more. Gas and Coal reserves are expected to last 65 and 155 years respectively.
Not only the limited oil reserves are of concern. The major countries with oil reserves have a history of political instability and most of them are in the currently unstable Middle East. In the United States during the hurricane season 2005 There was a severe impact on oil and gas supply. Almost 30% of United States gasoline production was lost.
China
Coal production worldwide has increase 78% over the past 25 years. The fastest growth has been in Asia, while Europe has seen a decline in production. China is the worlds top coal producer and accounts for about 30% of the worlds total annual production. China is expected to count for half of the worlds coal production increase by year 2030.
China uses coal as the main energy source, coal counts for about 70% in Chinas energy production and consumption. China has one of the worlds largest coal reserves with 126 billion tons proven recoverable reserves and potentional reserves of up to 4 trillion tons. In 2005 China’s coal production reached 2.19 billion tons and consumption reached 2.14 billion tons. Currently two-thirds of Chinas energy usage comes from coal. Coal is also responsible for, fueling power generation (70-80%), energy used in industry (75%), Household energy (80%). The demand for coal to liquid fuels has risen steeply in the last few years and there are many incentives given by the government to new technologies that help China being more independent from Oil imports.