Peak Coal? Analyst Sees Demand Outpacing Supply

The 25 million-ton surplus of coal will be erased, and replaced with a 103 million-ton deficit by 2020, according to a forecast of Asia-Pacific coal demand by UBS Investment Research Associates and written about in Business World. The demand will be driven by the Chinese economic explosion, with almost three quarters of China's energy coming from coal in the coming years, according to the estimate.

The Philippines will also be a big consumer. Asian economies will increasingly look to Africa to supply coal, according to the report. Coal is often discussed as if it is a virtually inexhaustible resource. It is not, as this report shows. Further, the reliance on coal for electricity production and other industrial power is fueling global warming and a slew of other environmental and health problems, from acid rain to asthma.

Reports like this should be a wake-up call that the world needs to invest in alternative energy research and development faster.

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