Coal gasification/pros and cons

About 80% of total remaining U.S. fossil fuel resource is in the form of coal. World oil production is expected to peak not later than 2000; a precipitous rise in world oil prices can be expected. Currently SNG from coal at a cost of $3.50 to $4.50/million Btu, is equivalent to oil at $15 to $25/bbl. Low-Btu gas from coal for large industrial plants and for power generation at $2.50 to $4/million Btu competes with low-sulfur fuel oil at $2.50/million Btu. SNG and electricity can be produced from coal at comparable efficiencies; the advantage of gas lies in its distribution through existing gas pipelines. Deliveries to interstate natural gas pipelines will be progressively reduced, and distribution systems will operate below capacity unless new sources such as LNG or SNG from coal can be developed under some form of Federal assistance. Potential alternatives to coal gasification include electric heat pump development; conservation projects; and (long-range) solar energy developments. Environmental advantages of SNG vs. electricity from coal are discussed.