U.S. coal production rebounded from very low levels in the second half of 2016, as utilities burned more coal to replace costlier natural gas, according to a report Wednesday from the U.S. Energy Information Administration. Much of the increased production came out of the Powder River Basin in Wyoming and Montana, the source of the lowest-cost coal in the country. “During the third quarter of 2016, warmer-than-normal temperatures led to increased electricity generation — the highest on record for those three months combined — which resulted in higher consumption of coal compared to the first half of 2016,” the EIA said in its report. That rebound continued into the fourth quarter, even after colder temperatures reduced the use of air conditioners.

 

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