There's a very interesting article in today's Washington Post entitled, "Next Generation of Coal Miners: As Older Va. Coal Miners Retire, Young Workers Drawn to Industry's New Boom." The key point is that with coal prices from central Appalachia having doubled - from $30 per ton to $60 per ton -- over the past year, and with U.S. coal production at record highs as well, coal companies are hiring again. That's good news for Virginia, ninth-largest coal producing state in America. It's even better news in the coal area of Southwest Virginia, where the industry employs 5,000 people (down from 10,000 in 1987). It's also an interesting, positive flip side to the high energy prices we are now experiencing. True, nobody likes paying high prices for gasoline, diesel or electricity, but the other side of the equation is that oil, gas, and coal producers are doing very well right now. And, to an extent, that's helping people who live in energy producing areas like Southwest Virginia. The Washington Post quotes Glen "Skip" Skinner, county administrator for Wise County, "which has seen payments from coal companies double in the past five years" but remains a "depressed corner of the Virginia" overall:
It's been pretty unexpected, but it's been good for the economy so far. The jobs opening up, coming back -- it means I can take care of my family and stay close to home. There are always people who are going to worry about the future of coal -- is it going to stay? -- but this is still a good thing for us.
The only problem could occur if energy prices collapse, which they certainly may do at some point. But for now, with oil prices rising towards $70 per barrel, it doesn't look like a crash is coming anytime soon. In fact, the US Energy Information Administration foresees high coal prices at least through 2006, with Appalachian coal production increasing as well. In other words, for now, it's "boom time in coal country."