Coal Age

AUG 2012

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1960-1969 1960s: Coal Fuels America's Critical Electrical Backbone 1960-1969 T he 1960s were a period of transition for the coal industry. When the decade started, producers were strug- gling with a down economy and a public increasingly enamored by oil and natural gas. In 1958, natural gas bumped coal as the second place energy supplier and in 1959 almost 27% of the total energy pic- ture was fueled by gas. Third place coal was down to only 23.5% that year, having fallen from 37.8% in 1950. As the new decade began, oil supplied 40% of the energy needs of the nation. Traditional markets like home heating and the rail- roads were gone. The saving grace of the industry was the development and build- out of America's new electrical power grid. Though in 1960, coking coal and industrial users were the largest con- sumers of coal, by the end of the decade, the electrical industry was by far coal's biggest client, receiving more than 310 million tons in 1969 as production increased to a high of 573 million tons that year—virtually all of it bituminous coal. But increased productivity came with a price. Land conservationists and envi- ronmentalists began to fight for regula- tions to control the appetites of the new strip-mining operations. In return, the coal industry, with the help of Coal Age, waged a massive public relations cam- paign showcasing the efforts of produc- ers to voluntarily reclaim, re-plant and re-develop strip-mined lands. Legislation treating both acid mine drainage and reclamation controls were passed by sev- eral states, eventually forcing the federal government to get involved. Coal's new ally, the electrical utility sector, also came under scrutiny as smog and smoke abate- ment campaigns and SO2 management schemes successfully altered the way coal was being burned. Just as King Coal began to reconstitute its collective strength and begin producing at levels 108 www.coalage.com not seen since the early 1950s, its detrac- tors threatened to derail whatever gains were being made. Labor peace was sustained throughout the mid-1960s, but at a high price. Wages rose throughout the decade and producers turned to even greater mechanization as a result. The huge new draglines and buckets that started to be deployed in the late 1950s were joined by and often replaced by even larger draglines and mobile equipment as a fleet of new machines took the field—par- ticularly in Illinois, western Kentucky, Indiana and Ohio. Underground producers increasingly adopted and adapted new hydraulic machines and cutters, merging the technologies together into new long- wall installations. By the end of the decade, tons per man-hour had gone through the roof at these more progressive operations. But the industry still needed new miners. As coal looked to expand, there weren't enough workers to go around and not enough were applying for new jobs. As the industry faced its best opportunity in decades, creating a stable workforce became a challenge. During the spring of 1967, Coal Age also went through a transition as editor Ivan A. Given retired after nearly four decades working for the magazine—the longest tenure of any staff member. He was suc- ceeded March 1 by Alfred E. Flowers, who had been a long-time associate editor. A native of Sutton, West Virginia, Given was the fifth chief editor of Coal Age. After a 10- week editorial training course, he started his McGraw Hill career on June 25, 1928. On March 2, 1944, he was appointed the magazine's editor, a position he held longer than anyone prior. As Given was retiring, King Coal was beset upon by myriad of challenges, "not only of competition, but the newly impor- tant ones of air and water pollution, land reclamation and improvement, subsi- dence, plant noise and appearance and 100th Anniversary Special Issue others." Taking advantage at the market's bottom, oil companies started buying up coal producers left and right. By the end of the decade, many of the biggest miners, including top producer Consolidation, had been purchased by oil companies. Though now reduced to only corporate divisions, big oil brought with it deep pockets and coal producers were able to secure the vital capital to expand to new heights of efficiency. Electrical Demand Drives Steady Production Gains in the 1960s Slumping coal production had stabilized to approximately 435 million tons in the late 1950s and early 1960s. In 1961, production bottomed out at 423 million tons, but would gradually and steadily rise from there throughout the decade to a high of 573 million tons in 1969. "Hard hit by deep- er-than-expected recession in '58 and a severe 4-mo steel strike in '59, bituminous entered the new year and decade poised to resume its growth destiny," wrote the edi- tors in the February 1960 issue. The top 15 coal companies (led by Consol and Peabody at 31 million tons and 25.7 million tons respectively) produced nearly 40% of the national total. For the 11th straight year, utilities increased their use of bituminous coal. 1959 totals were approximately 10% higher than the previous year as almost 170 million tons were burned by the growing utility sector. That would grow to 179 mil- lion tons in 1961 and 193 million tons in 1962. In the April 1963 issue, the editors stated that coal use by utilities was expect- ed to grow at a rate of 13 million to 20 mil- lion tons per year. In the new decade, industry manage- ment, through the formation of the new National Coal Policy Conference and the re-organization of the National Coal Association, challenged competitors to ensure coal's place at the head of the nation's energy future. Since research and August 2012

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