Summary

Kentucky’s coal industry remains a significant economic player in some parts of the state and will be part of the state’s economy and nation’s energy mix for the immediate future. In the long term, however, it is an industry in decline. Current trends suggest that Kentucky-based coal companies are at a competitive disadvantage vis-à-vis western and other producers, and that this disadvantage is likely to increase in the future. Economically-recoverable coal reserves are diminishing. Meanwhile, Kentucky’s top coal-producing counties remain among the most distressed counties in the nation, leaving them vulnerable to future shifts in mining employment. While potential new technologies provide some emerging opportunities for coal markets, the impacts of these developments are unknown. As costs and regulatory concerns mount, the future of Kentucky’s coal industry is uncertain. What is known is that Kentucky’s coal industry faces tough challenges with regard to rising costs, labor shortages and a growing national push for cleaner energy. These issues will be at the forefront of debates about Kentucky coal in the foreseeable future.