Source: CONSOL Energy Inc. (NYSE:CNX)
Just for some additional perspective on how important coal is to the economy we’ll take a look just a little farther south in West Virginia. In that state, Alpha Natural Resources, Inc. (NYSE:ANR) has about 6,700 employees but its coal business supports about 23,450 total jobs. The average worker in West Virginia takes in about $38,000 per year, whereas the average coal industry employee takes home $85,000 per year. Coal exports are a big economic driver for the state by supporting nearly 24,000 jobs and contributing $3 billion in economic value.
Not only do coal exports benefit coal producing states, but they are a big economic driver and job creator for states that export coal globally. Consider Virginia, which has a major coal export facility in Norfolk operated by the Dominion Terminal Associates. That entity, which is owned Alpha Natural Resources, Inc. (NYSE:ANR), Peabody Energy Corporation (NYSE:BTU), and Arch Coal Inc (NYSE:ACI), as well as others like it, help to contribute more than 19,000 jobs to the state as well as $2.5 billion in economic value. It’s really a win-win situation, as coal producers have a market for their coal while the states gain high-paying jobs.
For additional color consider South Carolina which only has 700 jobs related to coal export, which produced just $56 million in related economic value for its economy. That state, which has the bustling port of Charleston, could see a big increase in coal-related jobs and economic value if Kinder Morgan Energy Partners LP (NYSE:KMP) moves ahead with its plan to add coal export capabilities at its existing bulk facility at the port. The company is already spending over $450 million to expand its coal export capabilities elsewhere because demand for export capacity is high.
As you can see, the coal industry, despite not being as green as we’d like, is still critical to our nation’s economic engine. It’s sometimes the forgotten fossil fuel in “America’s Energy Resurgence”, considering the amount of press that oil and natural gas from shale get. However, we can’t forget about the fact that the U.S. possesses the largest estimated recoverable coal reserves in the world. Exporting our excess coal has the potential to be a big economic driver and job creator, which is why President Obama really needs this industry to survive.
The article President Obama Needs This Industry to Survive originally appeared on Fool.com is written by Matt DiLallo.
Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
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